What should I check before accepting a cash offer for an inherited property?

Before accepting a cash offer for an inherited property, establish exactly what is being offered, what obligations you would have, and whether the estate can legally proceed on those terms. An offer is usually not legally binding until contracts are exchanged, so use the period before acceptance and exchange to check the paperwork, property information, proposed deductions and practical arrangements with a conveyancer.

Confirm who has authority to accept the offer

Check that the person negotiating the sale has the legal authority to act for the estate. This may involve the personal representatives named in the will, more than one executor, or an administrator where there is no will. If several people are entitled to deal with the property, confirm that the required signatures and consents have been obtained.

Where beneficiaries disagree about the sale or the division of the estate, do not assume that accepting an offer resolves the dispute. The conveyancer should explain whose approval is needed and whether any additional documentation is required.

Read the written offer, not just the headline figure

Ask for the offer in writing and check whether it is:

• conditional on a survey, valuation, searches or further inspection;
• subject to a buyer’s internal approval process;
• dependent on the buyer selling another property;
• based on the property being vacant at completion;
• conditional on particular repairs, certificates or documents; or
• open for acceptance only until a stated date.

A cash purchase can still involve conditions. Clarify which conditions may result in the offer being reduced or withdrawn, and whether the buyer can renegotiate after receiving a survey or reviewing the title. The practical value of an offer depends on its certainty as well as its amount.

Check the net amount the estate will receive

Prepare a simple completion statement showing the proposed sale price and every payment that may be taken from it. This should distinguish the amount offered from conveyancing costs, search fees, management or compliance charges, mortgage redemption figures, repair allowances and any other agreed deduction.

Do not rely on wording such as “no fees” without asking what services are included and whether any costs are payable indirectly through a reduced offer. Each deduction should have a clear explanation and, where relevant, supporting evidence. Compare the expected net proceeds with the estate’s liabilities and distribution requirements rather than comparing headline offers alone.

Check the property information carefully

Give the conveyancer accurate information about the property before contracts are prepared. In particular, check:

• the registered title, legal description and ownership details;
• access rights, shared driveways, parking arrangements and boundary responsibilities;
• planning permissions, building regulation approvals and completion certificates for alterations;
• guarantees, certificates or notices relating to work carried out at the property;
• rights of way, restrictions, covenants or enforcement notices;
• any insurance claims, subsidence history, flooding information or known defects; and
• what fixtures, fittings, appliances and personal possessions are included.

Inherited properties are sometimes sold by people who have not lived in them. If you do not know the answer to a question in the property information forms, say so rather than guessing. An inaccurate answer can cause delay, a renegotiation or a claim after completion.

Decide how the contents will be dealt with

Agree in writing whether furniture, appliances, garden items and other contents are included in the sale. A buyer may expect the property to be cleared, while the estate may need time to identify items with sentimental or financial value. Make an inventory before anything is removed and obtain agreement about items that will remain.

Also arrange responsibility for securing the property, maintaining buildings insurance, paying utilities and dealing with council tax until completion. These practical points should not be left unresolved simply because the property is unoccupied.

Check vacant possession and occupation arrangements

If anyone lives at the property, establish the basis on which they occupy it and whether they have any rights that could affect the sale. This includes tenants, lodgers, family members and anyone with an informal arrangement. Review tenancy documents, deposits, notices and rent records where applicable.

Do not promise vacant possession unless the appropriate arrangements have been made. If the sale is to proceed with an occupier remaining, the buyer and conveyancers must agree the position before contracts are exchanged.

Review searches and title enquiries

Ask what searches will be carried out and whether the buyer is relying on searches already obtained. Searches can identify matters that are not obvious from an inspection, such as local authority issues, drainage arrangements, access problems or environmental risks.

Read the conveyancer’s report on the results and raise questions about anything unclear. A cash buyer may choose to proceed without mortgage-related requirements, but that does not make title defects or practical restrictions irrelevant to the estate.

Be cautious about exclusivity agreements

A buyer may ask the estate to stop speaking to other interested parties for a period. Before signing an exclusivity or lock-out agreement, check its duration, any compensation provisions, the circumstances in which it ends and whether it limits the estate’s ability to withdraw. Obtain independent advice before committing, particularly where the estate has multiple representatives or beneficiaries.

Check the conveyancing timetable and responsibilities

Ask for a written outline of the steps between accepting the offer and completion. This should cover the information the estate must supply, searches and enquiries, contract approval, exchange, completion, keys and the removal of contents. Establish who will arrange access for inspections and how queries will be answered when information has to be obtained from old records or family members.

Avoid making irreversible arrangements, such as distributing sale proceeds or disposing of essential documents, before completion has taken place. Keep the will, grant documentation, title papers, guarantees, invoices and correspondence together for the conveyancer.

Use an independent professional for the final review

The estate’s conveyancer should review the offer and contract for the estate’s interests, rather than relying solely on documents supplied by the buyer. Ask for any unusual term to be explained in plain language, including provisions about deductions, repairs, access, possession, delays or withdrawal.

Once the offer has been checked, record the agreed terms in writing and make sure the person accepting it has authority to do so. This creates a clear reference point if the proposed contract later differs from the terms originally discussed.