Estate Planning & Administration
Selling Inherited Property in Pennsylvania
Last updated February 2026
7 min read
When someone dies and leaves you a house, the legal and tax questions start immediately. Can you sell it right away? Do you need probate first? How are you taxed on the sale? This guide walks through the complete process under Pennsylvania law.
Before inherited property can be sold, someone needs legal authority to sign the deed. That authority comes from Letters Testamentary (if there's a will) or Letters of Administration (if there isn't). These are issued by the Register of Wills in the county where the decedent lived.
No title company in Pennsylvania will insure a sale of real property from a decedent's estate without Letters and a death certificate. This is non-negotiable — the buyer's lender will require it, the title company will require it, and the recorder of deeds will require it.
Under 20 Pa.C.S. § 3351, a personal representative (executor or administrator) has broad power to sell estate real property. However, there are important distinctions:
Will gives general power of sale: Most well-drafted wills grant the executor power to sell any estate property. This is the simplest scenario — the executor can list the property and sell it without court approval.
Will specifically devises the property to someone: If the will says "I leave my house at 123 Main Street to my daughter," the executor may still need to sell if the estate lacks liquid assets to pay debts, taxes, or expenses. But the executor should get the beneficiary's written consent or seek court approval under 20 Pa.C.S. § 3353 to avoid liability.
No will (intestacy): The administrator has statutory authority to sell under § 3351, but selling specifically to pay debts or expenses is the safer course.
1. Open the estate. File the will (if any) and petition for Letters at the Register of Wills. In Bucks County, this can often be done in a single visit. You'll also need short certificates — certified copies of the Letters that title companies and buyers will need. See our probate process guide for details.
2. Get the property appraised. You'll need an appraisal for two different purposes: the date-of-death value for inheritance tax purposes, and the current market value for listing. If you're selling soon after death, these may be nearly identical.
3. Address any title issues. Run a title search. Common problems include unreleased mortgages from prior transactions, old liens or judgments, tax delinquencies, or estate title defects (missing heirs, prior estates never properly administered). These must be resolved before closing.
4. List and sell. The executor acts as seller. The deed from the estate will typically be an executor's deed or administrator's deed. The title company will require the Letters, death certificate, and short certificates at closing.
5. File the inheritance tax return. The REV-1500 is due within 9 months of death. The property is reported at its date-of-death value — not the sale price. If you pay within 3 months, you receive a 5% discount on the tax owed.
Inheritance tax is owed on the date-of-death fair market value of the property, regardless of whether you sell it. The rates depend on the heir's relationship to the decedent:
See our complete PA inheritance tax guide for details on exemptions, deductions, and filing.
This is where the stepped-up basis rule (IRC § 1014) helps enormously. When you inherit property, your tax basis is the fair market value at the date of death — not what the decedent originally paid for it.
If you sell shortly after death, the gain is often minimal. Long-term capital gains rates apply automatically regardless of how long you've owned the inherited property.
When the property is sold to a buyer, the standard Pennsylvania realty transfer tax applies — 1% state plus 1% local (Bucks County), for a total of 2% of the sale price, typically split between buyer and seller.
However, if the property is transferred from the estate directly to a beneficiary (rather than sold to a third party), the transfer is exempt from transfer tax under 72 P.S. § 8102-C.3. The beneficiary can then sell in their own name — but that subsequent sale to a buyer is taxable.
This is one of the most common problems we see. Three siblings inherit a house. One wants to keep it, one wants to sell, one doesn't respond. Options include:
Negotiate a buyout. The sibling who wants to keep the house can buy out the others at fair market value.
Family settlement agreement. All heirs sign a binding agreement on how to handle the property. This is enforceable in Orphans' Court. See our family settlement agreements guide.
Partition action. If negotiation fails, any co-owner can file a partition action under Pa.R.C.P. 1551–1574 to force a sale or physical division. See our partition actions guide.
If the decedent had a mortgage, it doesn't disappear at death. The estate is responsible for payments until the property is sold or transferred. At closing, the mortgage is paid from the sale proceeds before any distribution to heirs.
If the property is underwater (mortgage exceeds value), the estate may need to negotiate a short sale with the lender or allow foreclosure. Heirs are generally not personally liable for the mortgage unless they co-signed or assumed it.
From death to a closable sale, expect roughly 3 to 6 months at minimum. The biggest variables are how quickly Letters are obtained (usually 1–3 weeks), whether title issues exist (can add weeks to months), and how long the property takes to sell on the market.
The property can be sold while the estate is still open — the proceeds simply become estate assets, distributed according to the will or intestacy statute after debts and taxes are paid.
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