Executor's Guide to Selling Deceased Estate Property

Being appointed executor of a deceased estate is a significant responsibility. Along with managing assets, debts, and distributions, you may need to sell the deceased's property—often while grieving yourself.

This guide walks you through the probate process, tax implications, and practical steps for selling a deceased estate property in NSW. With 25+ years helping St George families through this process, I understand the sensitivity required.

Remember: you do not have to do this alone. Professional support from solicitors, accountants, and experienced real estate agents can make this process much smoother.

Your first duty is to secure the property and protect estate assets. Do this immediately after the death, before probate begins.

Immediate actions:

Probate is the legal process that confirms your authority to manage the estate. In NSW, you typically need a Grant of Probate before you can sell real property.

Documents you'll need: Original Will, Death Certificate, Inventory of Assets, and Probate Application Forms (available from NSW Supreme Court).

Expected timeline: Gathering documents takes 2-4 weeks, Supreme Court processing takes 4-8 weeks, for a total of 6-12 weeks to Grant.

Costs: Court filing fees are approximately $1,200-$1,500. Solicitor fees (if used) typically range from $2,500-$5,000.

You need two different valuations for a deceased estate sale:

1. Date of Death Valuation

This establishes the property's market value at the time of death—critical for calculating capital gains tax. Get this from a licensed valuer or experienced agent familiar with retrospective valuations.

2. Current Market Valuation

This determines your asking price and marketing strategy. I provide free market appraisals for deceased estates throughout St George.

Capital Gains Tax (CGT) on inherited property is complex but understanding the rules can save tens of thousands of dollars.

The 2-Year Main Residence Exemption

If the property was the deceased's main residence (their home) and you sell within 2 years of death, the entire capital gain is CGT-free. This is one of the most valuable tax exemptions in Australian property law.

After 2 Years

If you sell after 2 years, CGT applies on the gain from date of death value to sale price (not from original purchase price).

Example calculation:

Date of death value: $1,200,000

Sale price (3 years later): $1,400,000

Capital gain: $200,000

After 50% discount: $100,000 taxable

Tax at 37% marginal rate: $37,000

Once probate is granted (or imminent), prepare the property for sale. Many deceased estates need some attention, but do not assume major renovation is required.

Common preparation tasks:

The three main options for selling deceased estates:

Auction

Often recommended for deceased estates, especially with multiple beneficiaries. Provides transparency, a definitive result, and clear timeline. All parties can see the process was fair.

Private Treaty

More flexibility on timing and negotiation. Good for emotional sales where family needs time, or if the property has unique features that benefit from longer marketing.

Off-Market

Quick and private. Suitable when beneficiaries need funds urgently or want minimal publicity.

Exchange of Contracts

The executor signs the contract on behalf of the estate (not in personal capacity). Standard 10% deposit applies. Typical settlement period is 42 days, though shorter periods are possible if the estate needs funds.

Settlement

At settlement, outstanding debts are paid from proceeds: mortgage, council rates, water rates, strata levies (if applicable), and any outstanding utilities.

Distribution

After all debts and costs are paid, remaining funds are distributed to beneficiaries according to the Will. You'll need to provide final accounting to all beneficiaries.

1. Selling Too Quickly

Grieving families often want to "get it over with." But rushing can mean lower prices, missed tax planning opportunities, and family disputes later.

2. Missing the 2-Year CGT Window

If the property qualifies for main residence exemption, missing the 2-year deadline can cost tens of thousands in unnecessary tax.

3. Not Getting Independent Valuations

Beneficiaries often disagree on property value. Independent valuations protect you from accusations of undervaluing.

4. DIY Probate on Complex Estates

Simple estates are fine for DIY. But multiple properties, business interests, disputes, or no Will (intestacy) require professional help.

5. Ignoring Beneficiary Communication

Keep all beneficiaries informed throughout. Lack of communication breeds distrust and disputes.