Risks of selling an inherited unregistered house: Let us solve all your doubts

One of the questions that arises when inheriting an unregistered house is the importance of updating its status in the Land Registry. If you’re considering skipping this procedure, here are the implications of not registering an inherited house and everything about selling an inherited unregistered house.

Can you inherit a house without it being recorded in a deed?

In some cases, you can inherit a house without a deed. This can occur when, there has been no official change in ownership recorded from one generation to the next.

Although the heir to the property is considered the legal owner of the property, he/she does not enjoy the full legal protection offered by the title deed and registration in the Land Registry.

Bear in mind that an inherited house without title deeds has no legal validity and therefore cannot be officially registered. For this reason, it’s of the utmost importance that the corresponding deeds are be drawn up once the property has been inherited. This shall ensure the legality of the property and provide adequate legal protection.

To sum up, selling an inherited unregistered house comes with risks. Failure to register can hinder the sale and, if worst comes to worst, result in the sale being declared null and void and compensation being paid to the buyer if it’s found that the seller was not the rightful owner.

Do you have to register an inherited property in the Land Registry?

If you’re wondering whether you can sell an inherited unregistered house, you need to understand that, from a legal perspective, there are no repercussions if you decide not to go through with this process. In other words, you’ll not be in breach of any regulations, as there is no legal obligation to formalise the transfer of ownership of a property by means of a public deed or to register the change of ownership in the Land Registry.

Even then, it’s important to stress that an unregistered house can be sold. Nevertheless, it’s of the utmost importance to bear in mind that there are significant advantages to registering an inherited property in your name at the Land Registry. This not only protects you from a legal standpoint, it’ll also safeguard your rights and those of any potential buyers.

Registering an inherited property in your name (or that of all heirs involved) will ensure your rightful ownership, as well as clearly specifying your percentage share in the property and the date from which you have been the rightful owner.This measure will give you and the future buyer of the property alike firm legal protection. In this way, you’ll be protected against any possible claims from third parties who intend to dispute the ownership of the property, against possible creditors with claims prior to the purchase or even against a fraudulent sale carried out by the person who appears as the owner in the land registry.

How to register an inherited property in the Land Registry?

If you’ve inherited a property that still hasn’t been registered and you’d like to formalise your ownership, whether to sell it or simply for greater peace of mind, you should contact the Land Registry and submit any documents that confirm your right to the property.

Broadly speaking, when the property information is outdated and you wish to be listed as the owner, you must provide the following documentation to register an inherited property:

• The death certificate of the previous owner.
• Copy of the DNI of the deceased.
• Last Will and Testament Certificate.
• Deed of acceptance of the inheritance and, if necessary, the deed of declaration of heirs.

The DNI (National Identification Number) of the heirs, if any, is also required. A notary’s title deed is used to register an old property for the first time.

It’s of the utmost importance to have paid any taxes related to the transfer, such as inheritance and gift tax, as well as providing payment documentation.

Therefore, it’s possible to register an unregistered inherited property, as long as you have the right documentation to confirm that you’re the rightful owner and have complied with the relevant tax requirements. This will enable you to confirm proof of ownership, increasing security and streamlining any future transactions, such as the sale of the property.

H2: Risks of selling an inherited unregistered house

Complications related to the sale of an unregistered property can be summed up in one fundamental obstacle: the almost insurmountable difficulty of finding an interested buyer. In the rare case that a willing buyer is found, you might have to reduce the asking price considerably to spark some interest. Why is that? The answer lies in the number of risks that the buyer would have to assume when acquiring a property in these circumstances. If worst comes to worst, you could lose the recently inherited property.

If a sale of a property is carried out without prior registration and a court subsequently determines that the seller was not the rightful owner of the property, the transaction will be declared null and void. Consequently, the seller is obliged to reimburse the purchaser for the purchase price as well as the costs of any renovations made to the property. Furthermore, the buyer will have to be compensated for the damages caused by this situation.