Executor Property Responsibilities in NSW
When someone dies and leaves you as executor, you inherit a set of legal responsibilities that most executors don't understand until something goes wrong. The property is usually the biggest one. You're now responsible for securing it, insuring it, maintaining it, protecting its value, and eventually selling it or distributing it. If you get it wrong, you can be held liable. If you ignore it, the property deteriorates and the beneficiaries lose money.
This article breaks down exactly what you're responsible for, what the timeline looks like, and where executors typically make costly mistakes. If you're looking for a full roadmap of executor duties, read the executor checklist for NSW estates.
Your Core Legal Duty: Duty of Care
As an executor, you have a fiduciary duty to the beneficiaries. You must act honestly, in good faith, and in their best interests. When it comes to property, this means you must take reasonable steps to protect its value. You don't have to restore it to pristine condition, but you can't let it rot. You can't ignore maintenance. You can't leave it uninsured. If you do, and the property decays or is damaged, you can be sued by the beneficiaries for loss.
This duty starts the moment the person dies, not when the Grant of Probate is issued.
What You're Responsible For: The Full List
Securing the Property
The property must be secure from the day of death. This means:
- Changing locks if necessary (anyone with old keys shouldn't have access)
- Installing alarms or increasing security if the property will be vacant
- Boarding up windows if the property is damaged or in a risky area
- Arranging regular inspections (at least monthly for vacant properties)
- Removing hazards (loose roof tiles, broken steps, unstable structures)
- Notifying police if the property is vacant (some police forces have vacant property registers)
- Installing motion-sensor lights if security is a concern
If the property is burgled or squatters move in because security was poor, you're liable for negligence.
Insuring the Property
You must verify that insurance is in place. This is critical. Most executors assume the deceased's existing policy is still active. It's often not, or it doesn't provide adequate cover for a vacant property.
What you need to check:
- Is the home and contents policy still active, or did it lapse on the deceased's death?
- Does the policy cover the property while it's vacant? (Standard landlord insurance often excludes vacant properties after 30 days.)
- Is there contents insurance for valuables still in the property?
- Is public liability cover in place? (If someone is injured on the property, you're liable.)
- Who's the insured? (You need the policy in your name as executor/trustee, not the deceased's name.)
If the property burns down or is damaged and it wasn't insured, the beneficiaries lose that value and you're liable for negligence. Read deceased estate insurance in NSW for the full detail.
Maintaining the Property
You must maintain the property to a reasonable standard. This includes:
- Regular lawn and garden maintenance (overgrown properties attract pests, vandalism, and adverse possession claims)
- Gutters and downpipes (water damage is expensive; neglected gutters cause foundation issues)
- Roof inspections (loose tiles, leaks, damage)
- Pest control (termites, rodents, and cockroaches are expensive to treat once established)
- Weatherproofing (sealing holes, repairing broken windows, maintaining weatherstripping)
- Pool maintenance (if applicable; neglected pools become breeding grounds for mosquitoes and are dangerous)
- Heating and cooling systems (need periodic operation to prevent seizing)
- Electrical and plumbing checks (leaks and electrical faults are fire hazards)
Maintenance is cheaper than repair. A neglected property can lose 10-20% of its value in 12 months. You're liable for that loss.
Documenting Everything
As executor, you're required to keep records that show you've acted properly. This includes:
- Photos and condition reports from property inspections
- Insurance documentation and premium receipts
- Maintenance invoices and records
- Security reports or police notifications
- Communication with beneficiaries about the property's status
- Repair quotes and decisions about what work to do
If a beneficiary later claims you've mismanaged the property, these records are your defence.
The Timeline: When Responsibility Starts and Ends
Immediately (day of death): You're responsible for the property from the moment of death, even before the will is read. You should visit the property, assess its security, notify insurance companies, and begin securing it.
Within 7 days: Contact the insurer. Confirm the policy is active. If it's not, arrange emergency cover while you sort out the permanent arrangement.
Within 30 days: Arrange a formal property inspection. Get a report from an inspector or surveyor. This creates a baseline condition record. If the property deteriorates later, you can prove it wasn't your negligence.
Week 2-4: Arrange ongoing maintenance contracts (lawn, pest control, pool if applicable). These should be in place before the property is left unoccupied.
Throughout probate (3-12 months): You remain responsible for the property's security, insurance, and maintenance until it's sold or distributed to a beneficiary.
Upon sale or distribution: Once the property is sold and the proceeds are distributed, or transferred to a beneficiary, your responsibility ends. But you stay liable for the condition and upkeep during your tenure as executor.
Specific Tasks You Must Complete
Property Valuation
You need an accurate valuation for probate and for fair distribution to beneficiaries. This isn't optional.
For a family home:
- Get a written appraisal from a real estate agent (free or low-cost)
- Or engage a certified property valuer (costs $300-$1,000, but provides a formal report)
For investment properties or high-value homes:
- Use a registered valuer (required for probate court applications)
- The valuation date is the date of death, not the sale date
For vacant land or acreage:
- Engage a valuer familiar with rural property
- Get valuations before clearing (a cleared property is worth different from an uncleared one)
Keep all valuation documents. They matter for the Grant of Probate, tax purposes, and beneficiary distribution.
Repairing Critical Issues
Some repairs are essential; others can wait. You need to distinguish between them.
Essential repairs (do immediately):
- Roof leaks (water damage spreads fast)
- Broken windows or doors (security and weather damage)
- Gas leaks (safety hazard)
- Electrical hazards (fire risk)
- Structural damage (foundation issues worsen over time)
- Failed plumbing (water damage)
Maintenance (schedule but not critical):
- Painting and cosmetic work
- Carpet and floor refinishing
- Kitchen and bathroom updates
- Landscaping beyond basic lawn care
Don't over-invest in the property. Your job is to preserve value for sale or distribution, not upgrade it. The beneficiaries inherit the property as it is.
Managing Access and Keys
During probate, only the executor should have access to the property. This protects it and protects you.
- Change or re-key locks after death
- Don't give keys to beneficiaries unless they need access for a specific reason (and document it)
- Keep a record of who has keys and when they were issued
- Require inspectors, trades, and contractors to sign in/out
- Install security cameras if frequent access is necessary
If something goes missing or is damaged while a beneficiary has unsupervised access, you're not liable. But if the beneficiary disputes that, documentation proves who was there.
When Things Go Wrong: The Pitfalls
Pitfall 1: Assuming the Existing Insurance Covers Everything
The deceased's home insurance policy often lapses on death or doesn't provide adequate cover for a vacant property. Standard landlord policies have exclusions for vacancy after 30 days. If the property is damaged during this gap, you're personally liable.
Solution: Contact the insurer immediately. Confirm cover and upgrade to vacant property insurance if needed.
Pitfall 2: Not Maintaining the Property
Executors sometimes think they can neglect the property while probate proceeds. They can't. Water damage, pest infestations, and vegetation overgrowth happen fast. A property left unmaintained for 6 months can lose tens of thousands of dollars in value.
Solution: Arrange ongoing maintenance from day one. It's cheaper than repair and satisfies your duty of care.
Pitfall 3: Over-Investing in Improvements
Some executors upgrade the property, thinking it'll sell better. It won't. You're liable to beneficiaries for overspending on improvements they didn't request. The property should be sold or distributed as it is.
Solution: Only do repairs necessary to preserve value. Ask beneficiaries before spending more than $500 on non-essential work.
Pitfall 4: Leaving the Property Unsecured
Unlocked doors, no alarms, no regular inspections. Properties like this get vandalized, broken into, or squatted. The squatter can claim adverse possession rights if they occupy it long enough. You're liable.
Solution: Secure the property properly. Alarms, locks, regular inspections, and police notification if it's vacant.
Pitfall 5: Not Documenting Maintenance and Inspections
If a beneficiary later claims you neglected the property, your only defence is documentation. If you have no records, they'll likely win.
Solution: Photograph the property monthly. Keep invoices for all maintenance. Document inspections. This takes 30 minutes per month and protects you completely.
The Responsibility Transfer
Your property responsibilities end in one of two ways:
If selling the property: Your duty continues until settlement is complete and the proceeds are distributed to beneficiaries. Once the sale settles, the new owner is responsible.
If distributing to a beneficiary: Your duty ends when the property is formally transferred to the beneficiary. They then own it and are responsible for its condition.
Until one of these happens, the property is your responsibility.
When to Bring in Professional Help
You don't have to manage all of this alone. If the property is complex, poorly maintained, or geographically distant, professional support makes sense.
Consider bringing in help for:
- Document recovery and systematic searching (complex estates with decades of accumulated items)
- Property maintenance and management while probate proceeds (especially for vacant or acreage properties)
- Repairs and trades coordination (structural issues, multiple repairs)
- Property stabilisation (estates in poor condition or high-risk areas)
I manage probate property management and document recovery so you can focus on the legal and financial side of the estate.
Frequently Asked Questions
Am I liable if the property is damaged by natural disaster?
No, if the property is properly insured. The insurance covers it. But if it's not insured and a storm damages it, yes, you're liable for negligence. Make sure insurance is in place and you're paying the premiums on time.
What if I don't know the property's condition?
Get a property inspection done in the first week. A professional inspector will flag every issue: structural problems, pest damage, asbestos, electrical hazards. This creates a baseline. If the property deteriorates after the inspection, it's not your negligence.
Do I have to do all the maintenance myself?
No. Hire contractors. But you're responsible for ensuring it's done and done properly. Get quotes, supervise the work, keep invoices.
Can I sell the property before the Grant of Probate is issued?
No. You can't transfer title without the Grant. You can list it, get it ready, and exchange contracts, but settlement can't happen until probate is finalised.
What if the property is in another state?
Your responsibilities are the same, but you may need to engage a property manager in that state to handle the day-to-day (maintenance, inspections, coordination). Engage a local professional who understands that state's probate laws.
What if beneficiaries disagree about what should be done with the property?
You have the final say as executor. But document your decision and the reasoning. Consult your solicitor if the disagreement is serious.
The Bottom Line
As executor, the property is your responsibility from day one. You must secure it, insure it, maintain it, and protect its value until it's sold or distributed. Neglect costs money. Over-investment costs money. But reasonable, documented care protects you and the beneficiaries.
If the property is the bottleneck and managing it alongside your other executor duties is overwhelming, that's normal. Most executors hit that wall. Professional support for the property side is exactly what I offer.
If this sounds relevant to your situation, I'm happy to talk it through. No obligation, no sales script. Phone 0428 613 163 or email info@aegispropertyconsultants.com.au.
