Selling an inherited house: community of heirs, taxes and procedure in the Baselbiet
After a death, the parental home suddenly belongs to three siblings, a surviving parent and sometimes a blended family. Nobody chose it, everyone has to decide: sell, one takes over, or let. This guide explains the rules of the community of heirs, the taxes in the canton of Basel-Landschaft, the alternatives to selling and the procedure from the certificate of inheritance to the notary. Anyone who would rather let the flat will find the way in the guide Letting an inherited flat.
In brief
- Until the estate is divided, the house belongs to the community of heirs in joint ownership: every decision, including the sale, needs the consent of all heirs
- No property transfer tax on the inheritance and on the division of the estate; the property gains tax is deferred and only falls due on a sale to third parties, on the gain since the parents bought
- Inheritance tax in the Baselbiet: spouses, descendants and parents are exempt; siblings, nieces, nephews and non-relatives pay
- If one heir wants to take over the house, the market value at the time of division counts: a neutral appraisal prevents disputes
- Realistic timeline: 4 to 9 months from the death to the sale, considerably longer in case of disagreement
The community of heirs: who may do what?
On death, the house passes by law to all heirs jointly (Art. 602 Civil Code). A community of heirs in joint ownership arises: nobody owns a part of the house, all own the whole house together, until the estate is divided.
- Unanimity: sale, letting, renovation, change of mortgage: everything needs the consent of all heirs. A single heir can block the sale
- Administration: running costs (mortgage interest, insurance, maintenance) are borne by the community; whoever lives in the house generally owes the others compensation
- Representative of the heirs: in case of deadlock, any heir can ask the competent authority to appoint a representative of the heirs (Art. 602 para. 3 Civil Code)
- Action for division: any heir can demand division at any time (Art. 604 Civil Code). If no agreement is reached, the court decides, if necessary by auction. That is the most expensive route
- Executor: if the deceased appointed one, the executor administers and sells; the heirs are consulted but do not decide alone
An inheritance contract or a will can set the course, for instance a right of first refusal for one child or a division rule. Read both before you negotiate.
Sell, take over or let?
Three routes are open. Which one is right depends on how many heirs there are, who wants the house and who needs the money.
- Sale to third parties: the proceeds are divided according to the inheritance shares. The clearest route with several heirs who have different plans. Disadvantage: property gains tax on the gain since the parents bought falls due
- Takeover by one heir: he or she takes over the house at the imputed value , in case of dispute the market value at the time of division (Art. 617 Civil Code), and pays out the siblings, usually with a new mortgage. The property gains tax remains deferred, no property transfer tax is due. Disadvantage: the financing must be affordable and the siblings must agree to the value
- Keep and let: the community of heirs continues or is converted into co-ownership; rental income is shared. Only works if the heirs agree for years to come. Worked example in the guide Sell or let
Our advice: have the market value determined neutrally first. Every option needs this figure, and it is the basis on which siblings can reach agreement.
Taxes in the canton of Basel-Landschaft
With an inherited house, three taxes come into play, two of which usually do not apply in the Baselbiet.
- Inheritance tax: spouses, descendants and parents are exempt in the canton of Basel-Landschaft. Siblings have an allowance of CHF 30,000, after which a rate according to the degree of kinship applies; non-relatives pay the top rate. The house counts at its market value
- Property transfer tax: None on the inheritance and on the division of the estate, even if one heir takes over the house. It only falls due on a sale to third parties: 2.5 %, half each for buyer and seller; details in the guide to property transfer tax
- Property gains tax: on inheritance deferred. The heirs take over the parents’ investment costs and holding period. On a sale to third parties, the gain since the original purchase is taxed: for a house the parents bought in 1985 for CHF 400,000 that is worth CHF 1,000,000 today, a large amount. The long holding period helps: the parents’ years count, and for purchases more than 20 years ago, the market value of 20 years ago counts as the acquisition price. All the rules in the guide to property gains tax
On top of this comes income and wealth tax: until the sale, each heir pays tax on their share of the tax value; the imputed rental value is owed by whoever lives there, until its abolition in 2029.
Worked example: three siblings, one parental home in Sissach
Sale to third parties: proceeds CHF 900,000 less mortgage CHF 150,000, seller’s share of property transfer tax CHF 11,250, notary/land registry around CHF 1,500, property gains tax on the gain (acquisition price = market value 20 years ago, e.g. CHF 620,000, less value-adding investments), roughly CHF 50,000 to 60,000. Net around CHF 680,000, around CHF 227,000 per sibling.
Takeover by the daughter: imputed value CHF 900,000, net value after mortgage CHF 750,000. She pays each brother his third of CHF 250,000 and takes over the existing mortgage of CHF 150,000; in total she needs a mortgage of around CHF 650,000 (72 % of the value; her own third counts as equity). Affordable from around CHF 140,000 gross income (see Calculating affordability). No property transfer tax, property gains tax deferred.
The difference: with the takeover, around CHF 65,000 in taxes and fees stay in the family for the time being. If the daughter sells later, she pays the deferred property gains tax herself.
Procedure: from the death to the sale in 7 steps
- 1. Apply for the certificate of inheritance from the competent authority at the deceased’s last place of residence, after the three-month period for disclaiming the inheritance has expired. It identifies the heirs and is the prerequisite for any disposal of the house
- 2. Land register: the community of heirs is entered in the land register (inheritance); on a sale, title is transferred directly to the buyer
- 3. Clarify the mortgage: inform the bank; the mortgage continues, interest is borne by the community. For fixed-rate mortgages, ask about the early repayment penalty; see guide to the mortgage when selling
- 4. Valuation: have the market value determined neutrally; in case of disagreement, a written appraisal (see Having your house valued)
- 5. Decision and power of attorney: record the sale, takeover or letting in writing; give one heir or the agent a power of attorney so that not every step has to be signed by everyone
- 6. Clear out and market: distribute or dispose of the household contents, prepare the house, put the documents together (checklist), marketing according to the usual procedure
- 7. Notarisation and division of the estate: all heirs (or the authorised representative) sign the purchase contract at the notary’s office; the proceeds go into an account of the community of heirs and are distributed according to the shares under the division agreement
Avoiding disputes: what helps in practice
- A figure everyone accepts: a neutral appraisal costs CHF 1,500 to 3,000, an inheritance dispute in court many times that
- Separate the emotions: anyone who grew up in the house values it differently from the market. Discuss memories and figures in separate meetings
- Regulate the use: if one heir (or the surviving parent) lives in the house, record in writing who bears which costs and whether compensation for use is owed
- Set deadlines: a house that stands empty for two years loses value and costs maintenance. Agree a date for the decision
- Bring in professionals early: the notary for the certificate of inheritance and the division agreement, a fiduciary for the taxes, an estate agent for valuation and sale. Our property fiduciary Roman Frey calculates the tax consequences of each option
For practical use: inherited house checklist
- Read the will or inheritance contract: rights of first refusal, division rules, executor
- Observe the period for disclaiming (3 months), apply for the certificate of inheritance
- Inform insurers, mortgage bank, municipality and building insurance of the death
- Have the market value determined; in writing if there are several heirs
- Decide on the option and grant a power of attorney
- Calculate the taxes in advance: property gains tax with the holding period since the parents bought
- Proceeds into the estate account, distribution under the division agreement
Questions on this topic.
Can one heir block the sale of the inherited house?
Yes. As long as the community of heirs exists, the sale needs the consent of all heirs. If one blocks permanently, any other heir can demand the division of the estate and, if necessary, file an action for division: the court then decides, in the extreme case by auction.
Is property transfer tax due on an inherited house?
Not in the canton of Basel-Landschaft: neither the inheritance nor the division of the estate, nor the takeover by one heir, triggers property transfer tax. It only falls due on a sale to third parties, 2.5 % of the price, half each for buyer and seller.
Do I have to pay property gains tax when selling the inherited house?
Yes, on a sale to third parties. The inheritance itself only defers the tax: the heirs take over the parents’ investment costs and holding period. The gain since the original purchase is taxed, with the market value of 20 years ago counting as the acquisition price for purchases more than 20 years ago.
At what value can one heir take over the house?
At the imputed value the heirs agree on. If they cannot agree, the market value at the time of division applies. A neutral appraisal is the safest basis so that none of the siblings later speaks of being disadvantaged.
Do children pay inheritance tax on the parental home in the canton of Basel-Landschaft?
No. Descendants, spouses and parents are exempt from inheritance tax in the canton of Basel-Landschaft. Siblings, nieces, nephews and non-relatives pay according to the degree of kinship; for siblings an allowance of CHF 30,000 applies.
How long does it take to sell an inherited house?
Allow 4 to 9 months: three months for the disclaimer period and the certificate of inheritance, then valuation, clearing out, marketing (2 to 4 months) and the notary. If the heirs do not agree, it takes considerably longer.
Inherited the parental home and unsure how to proceed?
We determine the market value neutrally, work through sale, takeover and letting with you and accompany the community of heirs through to the notary, free of charge if you sell or let through us.
Let’s talk about your property.
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