What Happens When You Inherit Property? A Simple Guide

Inheriting a property can be a significant event—whether it’s a family home or an investment property. While it may seem straightforward, there are legal and financial steps involved in transferring ownership.A conveyancer plays an essential role in ensuring the smooth transfer of inherited property, making sure all legal requirements are met. Here’s an easy-to-understand guide on what happens when you inherit property and how a conveyancer can help.

What Happens When You Inherit a Property?

When a person passes away, their assets—including property—are distributed according to their Will (if they have one) or through the rules of intestacy (if they don’t have a Will).

The property will either:✔ Be transferred directly into your name if you are the sole beneficiary.✔ Be sold and the proceeds shared among beneficiaries.✔ Be co-owned with other beneficiaries.

💡 Important: Before a property can be transferred or sold, the estate must go through probate.

What Is Probate & Why Is It Needed?

Probate is the legal process of validating a Will and giving the executor the authority to manage the estate.

✔ If there is a Will, the executor applies for Probate in the Supreme Court of NSW.✔ If there is no Will, a Letter of Administration is required instead.✔ Once Probate is granted, the property can be legally transferred or sold.

💡 Tip: If the property was jointly owned (e.g., by a married couple), it usually passes automatically to the surviving owner without needing probate.

How a Conveyancer Helps with Inherited Property

A conveyancer helps manage the legal transfer of the property from the deceased estate to the beneficiary (or buyer, if selling). Their role includes:

✅ Transferring Property into Your Name

✔ Preparing Transfer of Land documents to update ownership.✔ Lodging

the transfer with NSW Land Registry Services.✔ Ensuring all legal paperwork is completed correctly.

✅ Handling Stamp Duty Exemptions

💡 Good news! In most cases, you do NOT have to pay stamp duty when inheriting property from a deceased estate.✔ Your conveyancer will apply for stamp duty exemptions where applicable.

✅ Managing Sale of the Property (If Required)

If the property needs to be sold:✔ Your conveyancer will prepare the Contract of Sale.✔ Handle settlement & legal transactions.✔ Ensure the proceeds are distributed correctly according to the Will.

✅ Checking for Outstanding Debts

✔ Confirming if the property has any outstanding council rates, land tax, or mortgages that need to be settled.✔ Ensuring all financial matters are resolved before transfer or sale.

Tax & Financial Considerations

Inherited property may have tax implications, including:

🏡 Capital Gains Tax (CGT) – If you sell the inherited property, you may have to pay CGT on any profit. However, there are exemptions if:✔ The property was the deceased’s main residence and was sold within 2 years.✔ You move into the property as your main home.

💰 Ongoing Costs – If you decide to keep the property, you’ll be responsible for council rates, maintenance, and land tax (if applicable).

💡 Tip: Always check with an accountant or financial advisor before selling an inherited property.

How Long Does It Take to Transfer an Inherited Property?

The time frame depends on:⏳ Probate processing – Can take 6-12 weeks.⏳ Legal paperwork – Property transfer can take 4-6 weeks once probate is granted.⏳ Sale process – If selling, allow 8-12 weeks for listing and settlement.

Do You Need a Conveyancer to Inherit Property?

Yes! A conveyancer makes sure the legal transfer is handled properly, avoiding delays and legal complications.

✔ Guides you through the legal process.✔ Prepares and lodges all paperwork.✔ Ensures stamp duty exemptions are applied.✔ Handles settlement & final property registration.

🏡 Inherited a property? Let SL Conveyancing help make the process simple and stress-free.

📞 Call us today for expert assistance!