Learn · Sell
I inherited land in South Florida. What are my options?
Inherited land comes with a decision most families did not plan for. There is rarely a reason to rush it.
- First
- Make sure the title is in your name
- Then
- Know what the lot can hold
- Your options
- Sell, hold, build or partner
- Before you sign
- An attorney and an accountant
First, the paperwork
Before you can sell or build, the land must legally be yours. In Florida this usually goes through probate, unless the land was held in a trust or passed by a deed made to avoid it. A probate attorney can tell you where you stand.
Until that is done, nobody can close on the land, whatever a buyer tells you.
Several heirs, one lot
When brothers, sisters or cousins inherit together, every owner must sign to sell. Agree early on what each of you wants, and put it in writing.
If the owners cannot agree, a court can order the sale. It is slow and costly, and the price is rarely the best one.
What waiting costs
Land that sits still costs money every year. There is the property tax, and the taxable value can be reset after a change of owner, so the bill may go up. An empty lot must be kept clean, and a city can fine an owner who lets it go.
None of this means you must sell fast. It means you should know the yearly cost of waiting, in dollars, before you decide to wait.
Taxes on a sale
Florida has no state inheritance tax. For federal tax, the value of inherited property is generally reset to what it was worth on the date of death. This often lowers the tax when the land is sold soon after.
These rules have exceptions. Ask your accountant before you set a price, not after.
Your options
They are the same as for any owner: sell the land as it is, sell it with an approved project, build on it, or bring it into a partnership. You can also hold it. We compare them in sell your land or build on it?
Why inherited land sells short
Often the heirs live in another state. They have not seen the lot in years. Then a letter arrives with a cash price and a quick closing, and it looks like a solution. If that is where you are, read I got a letter offering to buy my land.
Take stock before you answer: the title, the yearly cost of waiting, and what the lot can hold. The third one we can do for you, with the free Land Check.
This article is general information for South Florida landowners. It is not legal, tax, engineering or investment advice. Rules differ by city and change over time. Check your own lot before you decide.