Inheriting a house often comes at a hard time. This guide gives a general overview of how inherited homes are usually sold in Illinois so you know what questions to ask. It is not legal advice. Every estate is different, so talk with an Illinois probate attorney about your situation.
1. Find out how the house passes
How you can sell depends on how the owner held title. Common situations include:
- Through a will or without a will (probate). If the house was in the owner's name alone, a probate case is usually opened in the county circuit court. In Winnebago and Boone counties that is the 17th Judicial Circuit; Ogle County is in the 15th Judicial Circuit.
- Joint tenancy. If the house was owned in joint tenancy, it usually passes to the surviving joint owner outside probate.
- A living trust. If the house was in a trust, the successor trustee usually handles the sale under the trust's terms.
- A transfer on death instrument (TODI). Illinois allows real estate to pass to a named beneficiary through a recorded transfer on death instrument.
Illinois' small estate affidavit is for smaller estates of personal property; it generally can't be used to transfer a house, so real estate usually goes through probate or one of the other routes above.
2. Who can sign the sale
In a probate case, the court appoints an executor or administrator and issues letters of office. That person usually signs the sale documents for the estate. Under independent administration, a representative can often sell without a separate court approval for the sale; under supervised administration the court may need to approve it. Your attorney and title company will tell you what they need.
3. Protect the house while the estate is open
- Tell the homeowner's insurance company about the death. Vacant homes can need a different policy.
- Keep the heat on in winter, or have the plumbing winterized, to avoid frozen pipes.
- Keep paying property taxes. Illinois property taxes are paid in arrears in two installments, and unpaid taxes can lead to a tax sale.
- Check for a mortgage or reverse mortgage. Lenders usually expect to be contacted after the owner passes away.
4. Decide how to sell
You can list the house with an agent, sell it to a family member, or sell it as-is to a cash buyer. Listing can bring the highest price for a house in good shape, but it usually means repairs, clean-out and showings. Selling as-is trades some of that price for less work and fewer surprises, which many heirs prefer when the house is dated, full of belongings or far from where they live.
5. If there are several heirs
When siblings or other relatives inherit together, everyone usually needs to agree on the sale or the executor needs authority to sell. Getting everyone the same written offer and timeline helps. A cash buyer can wait while the estate gets letters of office before closing.
Want a cash offer?
Daugherty Property Holdings, LLC buys houses as-is in Rockford, Winnebago, Boone and nearby Ogle County. Request a no-obligation offer or call (815) 706-3985.
Other guides: Selling a house with back taxes · Selling a house as-is in Rockford