Inherited property – what now?

01Declining an inheritance: check the deadline first

Under § 1944 BGB, the deadline for declining an inheritance is generally six weeks. It depends on when you learn of the inheritance and the basis of your entitlement; wills are subject to additional rules. The foreign-residence cases specified in the law have a six-month deadline. Promptly check when your deadline starts and the required formalities before deciding whether to accept or decline.

02Can I sell an inherited house immediately?

An inheritance alone does not establish which evidence is needed, what tax applies or who may act for the co-heirs. Gather proof of inheritance, land-register details, information on any executor and existing rights. The notary will clarify the documents required for the proposed transfer. Use the House-sale checklist to help prepare.

For an acquisition without payment, § 23 EStG takes the previous owner’s acquisition into account; inheritance does not automatically start a new ten-year period. Have the use and ownership history checked. If the sale is disputed, read the Context for co-heirs rather than assuming that your inheritance share entitles you to sell the entire property.

03Selling an inherited house, property or condominium

First establish the property type, ownership and authority to act. A condominium requires relevant owners’ association documents; a plot also needs use and planning information. An entire rental building needs documented income and tenancy records. Our separate pages on Sell land and Sell an apartment building help you get organised. An available apartment estimate is no substitute for valuing these other property types.

04Selling or renting out an inherited house: liquidity and effort

List the outstanding debt, ongoing costs, necessary work and actual income. Keep possible future rent separate from documented receipts. The scenario comparison lets you change assumptions without creating a sale or letting instruction. Tax questions and differing interests among co-heirs need separate clarification; a positive result does not give an individual heir authority to act.

05The first steps

Upon death, the property automatically passes to the heirs - even if the deceased is still listed in the land register. Clarify proof of your inheritance rights and the required land register entries. A prior land register correction is not a general requirement for renting. In the case of a transfer by heirs, the prior registration of the heirs in accordance with Section 40 GBO may be unnecessary. For sales or mortgages, the notary's office checks the evidence and entries necessary in each individual case.

1. 1Clarify proof of inheritanceA certificate of inheritance is not always required; please note the note on the notarial will or inheritance contract below. If a certificate of inheritance is required: at the probate court at the last habitual residence of the deceased - for Düsseldorf the Düsseldorf district court, in neighboring cities the relevant district court. You can submit the application there or through a notary's office.
2. 2Correct the land register – free of charge for 2 yearsIf you submit the application to the land registry office within two years of the inheritance, there is no fee for registering the heirs.
3. 3Re-register insurance and property taxesHomeowners insurance is passed on to the heirs. Inform the insurer and the city tax office.
4. 4Collect documentsExtract from the land register, energy certificate, and for condominiums also a declaration of division and minutes of the owners' meeting.

06What is the value of the property?

You need the value for three things: inheritance tax, distribution among co-heirs and the decision whether to keep or sell.

The tax office determines inheritance-tax value under the Valuation Act, usually using the comparative value method for condominiums. If you consider that figure too high, an appraisal may establish a lower value. The guide to market value reports explains which type of report suits which purpose.

07Inheritance tax: allowances

AI-generated

The degree of relationship influences the personal allowance. Whether and to what extent inheritance tax is due also depends on the entire acquisition, other exemptions, previous donations and the personal situation.

Family home: Section 13(1), nos. 4b and 4c ErbStG provides a conditional exemption. Relevant conditions include the deceased’s personal use or compelling reasons preventing it, prompt designation for the recipient’s own residential use and generally continuing that use for ten years. For children, the exemption covers only up to 200 m² of living area. Other conditions and exceptions, including compelling reasons for ending personal use, need individual assessment; moving in later does not by itself establish exemption.

08Keep, rent or sell?

There is no right answer for everyone. These three points usually decide:

1. 1Use as your own homeMay remain tax-exempt (family home). Allow for ongoing costs: owners' service charges, maintenance and property tax.
2. 2Let propertyRental income is subject to income tax. For tenancy-law questions, consult the applicable rent index and obtain professional advice where needed. Use the information about the rent index.
3. 3SellIn the case of acquisition free of charge, the acquisition of the legal predecessor must be taken into account for Section 23 EStG. A sale outside the deadline may be possible without tax on the private capital gains; business assets, usage and history must be examined separately.

09Joint heirs

The co-heirs are jointly entitled to manage the estate (§ 2038 BGB). Different rules apply to proper management and necessary conservation; a blanket majority rule is not sufficient for every measure. Dispositions of estate items generally require joint action (§ 2040 BGB). Representation and special cases must be specifically examined.

A request to dissolve the community of co-owners and any partition auction must be assessed against the specific inheritance and ownership situation. Particular proceeds are not guaranteed. A shared valuation basis and timetable can help avoid a dispute.

Legal basis: §§ 2032, 2038, 2042 BGB · § 180 ZVG