Selling Inherited Property: A Realtor’s Guide to Estate Sales in Pennsylvania

Selling a home is rarely simple, but the process becomes even more complex when the property is part of someone’s estate. An estate sale in Pennsylvania is the sale of a property owned by someone who has passed away, typically conducted under probate court supervision. Unlike traditional real estate transactions, estate sales require legal authority from the executor or administrator, careful attention to title issues, and close coordination with all parties involved. Realtors who understand the process can guide clients effectively and avoid common pitfalls.

1. Identifying the Executor or Administrator

The first step in an estate sale is confirming who has legal authority to sell the property. In Pennsylvania:

• If the deceased left a valid will, the will usually names an executor to handle the estate.

• If there is no will, the Register of Wills will appoint an administrator.

Realtors should always ask for a copy of the official paperwork, known as Letters Testamentary (for executors) or Letters of Administration (for administrators). Without this documentation, no one can legally sign a listing agreement or sales contract on behalf of the estate. Ensuring the right party is in place protects against future disputes.

2. Notifying and Involving Beneficiaries

Beneficiaries – the heirs entitled to inherit – must be notified about the estate proceedings. In Pennsylvania, this responsibility falls to the executor (if there is a will) or the administrator (if there is no will). Realtors are not directly involved in giving notice, but they should understand that this step is required before an estate can move forward with selling the property.

Sometimes, disputes arise after beneficiaries are notified, especially if family members have different expectations about the property. A common complication is a “tangled title” or “heirs’ property” situation. This happens when a homeowner dies without a will, leaving no clear instructions about who should inherit the home. In these cases of intestacy (dying without a will), Pennsylvania’s default inheritance laws decide who receives rights to the property. When multiple heirs become owners, selling can become complicated if not everyone agrees on what to do.

For realtors, the important role is to stay alert to these dynamics and anticipate potential delays. Partnering with an attorney-owned title company ensures that beneficiaries’ rights are properly recognized and that the property can be sold without future legal challenges.

3. Addressing Pennsylvania Inheritance Taxes

One unique aspect of estate sales in Pennsylvania is the state inheritance tax, which must be paid before property can transfer free and clear. The tax rate depends on the relationship between the deceased and the heir:

• Surviving spouses are fully exempt even if they were not listed as a co-owner on the deed.

• Children and other lineal heirs (such as grandchildren or parents) pay a 4.5% tax.

• Siblings pay 12%.

• All others pay 15%.

Realtors should understand these rates because they affect how quickly an estate can settle. For example, if heirs plan to use sale proceeds to pay the tax, the closing timeline may be influenced. An attorney-owned title agency ensures the tax filings are handled properly and that proceeds are distributed correctly at closing.

4. Ensuring a Clean Title

Even after probate and taxes are addressed, the property cannot transfer until the title is free of liens and encumbrances. Common issues in Pennsylvania estate sales include:

• Unpaid mortgages that must be satisfied at closing.

• Outstanding property taxes or municipal claims.

• Judgments or liens against the deceased owner.

• Unrecorded interests, such as old deeds or undisclosed heirs.

Because estates often involve years of paperwork and multiple family members, title issues are more likely to surface than in a standard sale. Realtors can add value by preparing sellers and buyers for this step and by partnering with a title agency that has attorneys on staff to resolve legal complications quickly.

The Title Process Timeline

Why Work With an Attorney-Owned Title Company

For realtors, the stakes in an estate sale are higher. A delayed closing can frustrate heirs, prolong the probate process, and risk the deal falling through. An attorney-owned title company like Clover Lane Settlement Services provides an added layer of security:

• We ensure the executor or administrator has proper authority.

• We confirm inheritance tax obligations are handled before closing.

• We clear liens and defects in title so the buyer receives full ownership.

• We resolve disputes or legal questions that might otherwise stall the transaction.

Tips for Choosing the Right Title Agency

Estate sales can be challenging, but they also present realtors with opportunities to guide families through one of the most important transitions of their lives. By understanding the steps from confirming the executor to clearing title and by working with an attorney-owned title agency, realtors can ensure these sales close efficiently and correctly.

If you are handling an estate sale in Pennsylvania, partnering with us gives you and your clients peace of mind that every detail will be managed properly.