Can I sell a property received as an inheritance or as a gift?
According to article 815-5 of the Civil Code: "A co-owner may be authorized by justice to pass alone an act for which the consent of a co-owner would be necessary, if the refusal of the latter jeopardizes the common interest. The judge may not, at the request of a bare owner, order the sale of full ownership of an asset encumbered by usufruct against the will of the usufructuary. The act passed under the conditions laid down by the authorization of justice is opposable to the co-owner whose consent has been lacking."
To summarize : if one co-owner blocks the succession, the other co-owner may be authorized, by decision of the tribunal de grande instance, to sign this act alone despite the non-consent of the first heir. Thus, unanimity does not apply.
What prohibits the sale of donated property?
- The conventional right of return: it is possible for the donor to add this clause if the donee were to die. The descendants do not dispose of the property in question, the ownership of which would automatically revert to the donor
- The usufruct reservation clause: in the case of a donation-partition with usufruct the bare ownership (right to dispose of the property) is transferred to you, but the usufruct (right to use the property and receive the income) is retained by the donor. Upon the death of the donor, the usufruct will then revert to you in your capacity as donee. This usufruct clause may authorize the sale of the property with the agreement of the donor.
- The inalienability clause: this clause imposed by the donor prohibits the donee from reselling or giving away the property. This is usually the case when the donor refuses to allow the property to leave the family framework. This ban must be temporary and justified, but may be extended until the death of the donor
When can we sell a property received as an inheritance?
From the moment there is only one heir and thus a single decision-maker, it is sufficient to pay the inheritance costs of the inherited property, as well as the notary fees at the time of the sale.
Note: it is possible that during the sale, there are profits subject to capital gains tax. Be careful, do not overestimate the value of the property!
What are the costs ?
- The certificate of ownership: authentic act ensuring the transfer of ownership of the property to the successors. This certificate is drawn up by a notary. + ancillary costs (mortgage status, land registration tax, property security contribution (0.10%))
- The division of the property: When the heirs decide to leave the joint ownership , a division of the property must be carried out by the notary. This is subject to various notary fees, such as notarized fees + land registration tax, 2.5% tax for registration fees and property security contribution (0.10%) will be required of you
What prohibits the sale of a property received as an inheritance?
The inheritance occurs on the death of a person, whose patrimony is transferred to the heirs. If there are several heirs, an agreement must be reached between all parties, including to proceed with the real estate sale of the property.
If there is a disagreement between the different heirs of the property (each of them holding a share of the right of ownership), it is essential to find a common agreement to proceed with a sale.
In the event of a profound disagreement, the law allows certain authentic acts to be carried out if two-thirds of the heirs are of the same opinion. But if there is no possible solution, it is the competent judge who will decide and who will deal with a potential auction.
When can a donated property be sold?
To proceed with the resale of a property, the donor must specify it in the deed of gift. The sale may also be authorized by the donor himself, or by his heirs.
- The resale of a property received as a gift or inheritance is quite possible if all the conditions are met: the absence of restrictive clauses and the agreement of all heirs if necessary
- Certain clauses may prohibit the sale of property received as a gift: The conventional right of return / The usufruct reservation clause / inalienability clause
- There are costs to be expected: the certificate of ownership and the division of the property
You want to
to sell in Paris or its surroundings ?
Posted on 06/01/2023 by
Andy LECUYER
