Selling an inherited house
Title has to be resolved before you can sell, and that is usually the long part. Meanwhile the clock runs on everything else — insurance on an empty house, property tax that no longer carries the deceased owner’s exemption, and maintenance nobody is doing. Understanding the sequence prevents most of the damage.
Insurance lapses or is voided because the house is vacant and the carrier was never told. Property tax goes unpaid because the bill goes to an address nobody checks. And the homestead exemption comes off, so the bill is larger than the one the family remembers. All three are avoidable and all three are common.
How title passes, which decides your timeline
| How it was held | What happens | Probate? |
|---|---|---|
| Tenancy by the entireties | Passes to the surviving spouse automatically | No |
| Joint tenancy with right of survivorship | Passes to the surviving owner automatically | No |
| Lady bird deed | the property passes automatically at death without going through probate† | No |
| In a trust | Per the trust terms | No |
| Sole ownership with a will | Devised per the will, once the estate is administered | Usually yes |
| Sole ownership with no will | Per Florida intestacy rules | Yes |
The first four rows are why estate planning matters: jointly titled property held by a married couple in Florida is presumed to be tenancy by the entireties†, so many Florida couples never face probate on the family home at all. The last two are where months disappear.
The Florida homestead complication
Florida homestead is not just a tax exemption — it also restricts how the property can be devised where there is a surviving spouse or minor child. A will leaving the house to someone else may simply not be effective against those protections, and the outcome can differ from what everyone expected. This is one of the more common reasons an apparently simple estate becomes complicated.
Separately, the $51,411† exemption and the accumulated assessment cap belonged to the deceased owner. Once the property is no longer their permanent residence, expect the tax bill to rise — and if an heir will live there permanently, they need to apply in their own right.
What to do in the first month
- Tell the insurer the house is unoccupied. Most policies restrict or exclude cover on a vacant property, and an undisclosed vacancy is exactly the argument you do not want after a loss. Ask about a vacant or unoccupied endorsement.
- Redirect the mail, including the tax bill. Unpaid property tax is sold as a certificate carrying up to 18% per year†, and an inherited property with a stale mailing address is one of the classic routes into that.
- Secure and maintain it. In Florida an empty, unconditioned house grows mould quickly — the humidity does not wait for probate.
- Establish how title was held before assuming probate is required. The deed answers this, and the answer changes everything.
- Find the insurance policy, the deed and any survey or wind mitigation report. They exist somewhere and they save money later.
Selling it, once you can
- Multiple heirs must all agree, or the arrangement must allow one to act. Disagreement between siblings is the most common reason inherited Florida property sits empty for years while costing money.
- A personal representative sells with authority from the estate, and buyers’ title agencies will want to see it.
- The disclosure duty applies to you — but only as to what you know. Under Johnson v. Davis (Fla. 1985)† the obligation is about your own knowledge, and an heir who never lived in the house genuinely knows less than an ordinary seller. Say so honestly rather than guessing either way.
- Consider a pre-listing inspection. On a property you have never lived in it tells you what you are selling, and it converts “I do not know” into documented fact.
Empty inherited properties attract unsolicited approaches, often before probate is complete and sometimes before the family has decided anything. Some are legitimate. What they share is a preference for speaking to whoever answers first, and a price that reflects the fact that the house is costing you money every month.
The tax point worth raising with a professional
Inherited property generally receives a stepped-up basis to its value at the date of death, which can substantially reduce or eliminate capital gains tax on a sale soon afterwards. That is a federal tax question rather than a Florida one, it depends on the specifics, and it is worth a conversation with a tax professional before selling rather than at filing time.
Related
Common questions
Can I sell an inherited house in Florida before probate is finished?
Generally title must be resolved first, though it depends how the property was held. Tenancy by the entireties, joint tenancy with survivorship, a lady bird deed or a trust can all pass property without probate — check the deed before assuming.
What should I do first with an inherited Florida property?
Tell the insurer it is unoccupied, redirect the mail including the tax bill, secure and maintain it against humidity, and establish from the deed how title was held before assuming probate is needed.
Does the homestead exemption continue after the owner dies?
No. The exemption and the accumulated assessment cap belonged to the deceased owner, so the tax bill will rise. An heir living there permanently must apply in their own right.
Do I have to disclose defects when selling an inherited house?
Yes, but the duty is about what you know. An heir who never lived in the property genuinely knows less than an ordinary seller — say so honestly, and consider a pre-listing inspection to convert uncertainty into documented fact.
What if the heirs disagree about selling?
It is the most common reason inherited Florida property sits empty for years while costing money. Either all owners must agree or the arrangement must allow one to act, which is a question for an attorney rather than a negotiation between siblings.
Will I pay capital gains tax on an inherited house?
Often little or none on a sale soon after death, because inherited property generally receives a stepped-up basis to its date-of-death value. That is a federal tax question that depends on specifics — raise it before selling.
Probate, homestead devise restrictions and intestacy are governed by Florida statute and the state constitution; basis step-up is federal tax law. Estates turn heavily on their own facts — this is general information, not legal or tax advice.