What Happens When You Inherit a House
What This Means
Title companies are responsible for ensuring that the buyer receives clear, marketable title to the property. If the owner has passed away, the title company needs proof that the person selling the property has legal authority to do so.
Without Letters Testamentary or Letters of Administration from Surrogate's Court, the title company generally cannot verify this authority and will not issue title insurance — which means the sale cannot close.
How It Works in New York
Why Title Companies Require Probate
A title company's primary job is to protect the buyer from future claims against the property. If a property is sold without proper court authorization, there's a risk that other heirs or creditors could challenge the sale later.
To avoid this risk, title companies require documentation showing that the seller has been legally appointed to act on behalf of the estate. Without this, they won't issue a title insurance policy.
Possible Exceptions
There are limited situations where a title company may close without full probate. These include cases where the property was held in joint tenancy with right of survivorship (meaning ownership automatically passes to the surviving owner), or where the property was held in a living trust.
In some cases, if the estate qualifies as a small estate under New York law and all heirs agree, a voluntary administration or small estate affidavit may be sufficient. However, these exceptions rarely apply to real property.
Some title companies may also close if all distributees sign the deed and provide affidavits, but this is at the title company's discretion and is not guaranteed.
What You Can Do
If you're trying to sell an inherited property and probate hasn't been completed, the best approach is to consult with a probate attorney who can advise you on the fastest path to obtaining the necessary court authority.
In the meantime, you can prepare the property for sale, obtain appraisals, and even market the property — as long as any accepted offer is contingent on court approval.
Common Challenges
- Most title companies will not close without court-issued letters of authority
- The probate process adds time even when everyone agrees to sell
- Small estate exceptions generally don't apply to real property in New York
- Different title companies may have different requirements and levels of flexibility
- Buyers may lose patience waiting for probate to be completed
Options Available
- File for probate or administration as quickly as possible to obtain court authority
- Check whether the property was held in joint tenancy or a trust, which may bypass probate
- Consult with a title company early to understand their specific requirements
- Work with a buyer who is willing to wait for court approval before closing
- Explore voluntary administration if the estate meets the requirements
When Selling Might Make Sense
- You've obtained Letters Testamentary or Letters of Administration
- The property was held in a way that bypasses probate (joint tenancy, trust)
- All heirs agree to sell and are willing to cooperate in the process
- The estate has debts that need to be paid from the sale proceeds
- Continuing to hold the property is financially burdensome