Executor Handbook NSW | Selling or Transferring the Property
Once the house is cleared and secured, you'll either sell it or hand it over to a beneficiary. Both have specific steps and timings. This chapter covers the practical side.
For a detailed legal breakdown of selling from a deceased estate, read selling deceased estate property in NSW. This chapter is the handbook version.
You Can't Settle Before Probate
This is non-negotiable: you can't transfer title to a property until you have the Grant of Probate (or Letters of Administration if there's no will).
What you CAN do before probate:
- List the property for sale
- Accept offers
- Exchange contracts
- Arrange property inspections and marketing
What you CAN'T do before probate:
- Settle the sale (transfer title)
- Discharge the mortgage if there is one
- Distribute sale proceeds to beneficiaries
Timeline: probate typically takes 8-12 weeks in NSW. Complex estates take 6+ months. Settlement can't happen until probate is finalised. Factor this into your timeline planning and be honest with agents and buyers about it.
Valuation
Get two valuations. A sworn valuation from a registered valuer (usually $500 to $900) is the number the ATO will accept, and the one your estate accounts should use.
Real estate agents will give you free market appraisals. These are sales opinions, not sworn valuations, and they often disagree with each other by a lot. Don't use them for estate accounting. Use them to understand the market, but get a formal valuation for the probate documents.
The cost of a valuation is small compared to the cost of getting it wrong on the probate application.
Should You Clear Before Selling?
This depends on the property's condition and the local market. A property that's clean and cleared usually sells faster and for a better price. A property full of decades of stuff often sells slower and for less.
The question is: does clearing cost less than the price difference?
Get 2-3 agent appraisals. Ask each one: "In this condition, what's the likely sale price and timeline? Would clearing improve the price?" Use their local market knowledge. Most agents have seen enough deceased estates to give you honest advice.
For most properties, basic clearing (removing large items, obvious rubbish, major hazards) is worth it before listing. Deep cleaning and removal of everything is worth it only if agents think it'll significantly increase the price or reduce the sale timeline.
Read do I need to clear an estate before selling for a detailed cost-benefit analysis.
Choosing an Agent
Choosing an agent matters. They're managing the sale while you're managing probate. Not every agent is good with estate sales.
Look for:
- Actual experience with probate and deceased-estate listings (not just a couple)
- Sensitivity during inspections (other family might still have emotional ties)
- Willingness to work to your timeline, not the market's
- A clear fee structure (estate sales are sometimes priced differently)
Disclose probate constraints early. Tell the agent there's an 8-12 week probate delay before settlement can happen. Most agents are used to it. Budget-conscious buyers often expect delays. Investors don't care.
Choose exclusive (one agent) or open (multiple agents). Exclusive is simpler. Open generates more activity and faster feedback.
Getting the Property Ready
Before marketing, decide: clear or sell as-is?
In most cases:
- Clean the property (basic cleaning at minimum)
- Photograph it in its current state
- Disclose the condition honestly
- If clearing improves the sale, do it before listing
- If it's clean enough, sell as-is
Get a market assessment. Meet with 2-3 agents. Ask: "In this condition, what's the likely sale price?" Use their advice.
Tax Implications
The main-residence exemption usually applies to the deceased's home for up to two years after death. But the rules are fiddly. Capital gains tax, land tax, and in some cases GST can all show up.
Use an accountant who does estate work. Don't rely on generic advice. Don't try to figure it out from the ATO website.
A good estate accountant will:
- Identify all tax obligations
- Advise on the timing of the sale (before or after probate is finalised can matter)
- Handle the final tax return
- Document everything for the beneficiaries
It's worth the cost.
Transferring Title Instead of Selling
If the house passes directly to a beneficiary rather than being sold, the title transfer goes through NSW Land Registry Services, usually via your solicitor.
From the transfer date, the new owner takes on rates, insurance, and strata fees. Make sure the new owner understands this and is ready to take on the responsibility.
The process is simpler than a sale but still requires the Grant of Probate to transfer the title legally.
FAQ
How long does a deceased estate property take to sell?
Typically 8-16 weeks from listing to settlement, plus the 8-12 week probate delay before settlement can happen. So 4-7 months total. Some sell faster, some take longer depending on market, condition, and location.
Can I list the property before probate is granted?
Yes. Exchange contracts before probate if you want. But settlement must wait for the Grant. Most buyers and their lenders know this and plan accordingly. Be transparent about it.
What if I get an offer before probate?
You can accept the offer and exchange contracts. But settlement won't happen until probate is finalised. Include this in the contract terms so the buyer knows what to expect.
Should I fix things before selling?
Usually, minor things yes. Major repairs, probably not. Agents can advise on what's worth fixing versus what to disclose and let the buyer decide. Structural issues, building compliance issues, and major systems should be disclosed.
What if the property has a mortgage?
The executor must discharge it from the estate funds before distributing to beneficiaries. The bank will provide a discharge amount. Settlement money covers this first, then costs, then debts, then beneficiaries get paid.
Who gets the money from the sale?
The estate gets it. The money is held and used to pay debts, costs, and taxes first. What's left is distributed to beneficiaries according to the will. You account for everything to the beneficiaries and keep records.
Can I rent the property instead of selling?
Usually not before probate, and rarely after. Tenancies complicate sales, and tenants have legal rights that make it hard to end a tenancy quickly if you need to sell. Talk to your solicitor if you're considering it.
Next: Common Mistakes Executors Make
Most estate problems are avoidable. Learn what to watch for.
Read about common executor mistakes
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If the property needs clearing before it can be marketed, or if preparation is becoming a bottleneck, I handle this work. Phone 0428 613 163 or email info@aegispropertyconsultants.com.au.