Buying my sister's half of my late parent's house

Blake007

Hi MoneySavers,


My parents passed away earlier this year and left their house to my sister and I. I want to keep the house and my sister wants the money so I'm buying her out. There's no mortgage on the property and I've raised the cash to pay her.


I was going to write a brief, simple contract saying that she relinquishes all rights to the property in return for the payment and have us both sign two copies. Would I need to do anything else?


Thanks

Talc1234

Blake007 wrote: »

I was going to write a brief, simple contract saying that she relinquishes all rights to the property in return for the payment and have us both sign two copies. Would I need to do anything else?Thanks

I think both you and your sister will need a solicitor to undertake such a transaction

ValHaller

Talc1234 wrote: »

I think both you and your sister will need a solicitor to undertake such a transaction

It can be done without a solicitor, but Blake, given your knowledge of the subject, you would do well to employ one for this.

G_M

No need for a solicitor, but find out how to do it properly.

* Who are the Executers of the will?
* if no will, who are the Administrators?
* Is there Inheritance Tax to pay? Has it been paid? Is there enough other money in the Estate to pay it without selling the property?
* Has Probate been granted?


Start with:

https://www.gov.uk/wills-probate-inheritance/applying-for-a-grant-of-representation

http://www.landregistry.gov.uk/public/faqs/what-do-i-do-when-a-property-owner-dies

kingstreet

Blake007 wrote: »

Hi MoneySavers,


My parents passed away earlier this year and left their house to my sister and I. I want to keep the house and my sister wants the money so I'm buying her out. There's no mortgage on the property and I've raised the cash to pay her.


I was going to write a brief, simple contract saying that she relinquishes all rights to the property in return for the payment and have us both sign two copies. Would I need to do anything else?


Thanks

Has the estate been distributed and the property passed into your joint ownership, or are you trying to do this while it is still in the Executor/Administrator's hands?

AdrianC

kingstreet wrote: »

Has the estate been distributed and the property passed into your joint ownership, or are you trying to do this while it is still in the Executor/Administrator's hands?

^ This is the important question. If it's still in the executor's hands, then all you need to do is agree an amount with your sister, and get the executor to transfer it straight to you instead of jointly.

If, otoh, it's already been distributed (tenants-in-common or joint tenants?), then you're going to need to re-do some of the legal work.

Blake007

Thanks for you replies guys.

I am the executor of the will and have started distributing the cash side of the estate. I've dealt with all the probate, tax and outstanding debt side of things.

I was under the impression that I could give my sister money in exchange for her half of the house and change the name on the deeds through the Land Registry with an AS1 form. On the estate documentation I'd record that this was done.

If people feel I need a solicitor though I'm more than happy to engage one. Peice of mind is worth a few hundred pounds.

AdrianC

Blake007 wrote: »

I am the executor of the will and have started distributing the cash side of the estate. I've dealt with all the probate, tax and outstanding debt side of things.

I was under the impression that I could give my sister money in exchange for her half of the house and change the name on the deeds through the Land Registry with an AS1 form. On the estate documentation I'd record that this was done.

You'll need to do all the Land Reg stuff anyway - no matter what happens. So long as your sis is happy that she's got the right amount of value from the estate, how you actually distribute the specific assets is down to you as executor.

So, yep, you give her money instead of putting her name on the LR form. It's that simple.

Miss_Marple_2

AdrianC wrote: »

You'll need to do all the Land Reg stuff anyway - no matter what happens. So long as your sis is happy that she's got the right amount of value from the estate, how you actually distribute the specific assets is down to you as executor.

So, yep, you give her money instead of putting her name on the LR form. It's that simple.

We did this recently, my brother bought my share for cash.

And whilst the solicitor did do the change of ownership form with the land registry, it was that simple.

She ( the solicitor) did send a letter to confirm what had happened, and as I was buying a house with the money, I kept the letter in case my mortgage company wanted to see where the money for my deposit came from, but they didn't seem interested.

Land_Registry

Looks like you have all the relevant information re dealing with Land Registry. It can often be quite straightforward to deal with the legal title (the property) as mentioned.

Invariably, when an owner dies though. there can be other considerations involved e.g. the rest of the estate, IHT/CGT and our recommendation is always to seek legal advice simply to ensure that everyone involved is both aware of what is happening, what their legal rights are in such situations and whether there might be any future implications to consider. Other posters are though better placed to advise on that of course, as they have already.

If you have any difficulties in completing the forms and lodging your application then please Contact Us - we can help with the basics but we can't give legal advice.