Skip to main content
Selling Inherited Property in the District of Columbia
Support GuideDistrict of Columbia18 min read

Selling Inherited Property in the District of Columbia

A D.C. personal representative can sell an inherited home without a court order. See who signs, the deed taxes, recording and heirs' basis.

By Settled Editorial

Yes, you can sell an inherited house in the District of Columbia, and the person who signs the deed is usually the personal representative. D.C. Code § 20-105 sends all of a decedent's property, real estate included, to the personal representative at death, who holds legal title for administration and distribution (D.C. Code § 20-105). So the sale runs through an open estate in the Probate Division, or it waits until the estate deeds the house to the heirs.

The good news is that a D.C. personal representative needs no court order to sell. D.C. Code § 20-741 lets the personal representative sell real property at a public or private sale, for cash or on credit, unless the will, Title 20, or a court order limits that power.

Here is how the sale works, who signs, what the District charges on the deed, and how the stepped-up basis shrinks the income tax on the sale. For the full court process, read the D.C. probate process first.

Can You Sell Before Probate Is Finished?

Yes, as long as the right person sells. Nobody can sell before probate starts, because nobody holds the power to sign until the Probate Division appoints a personal representative. Once appointed, that person can list and sell the house long before the estate closes.

Three ways a D.C. house can reach a buyer:

  1. The personal representative sells during administration. This is the common route. The buyer gets a deed signed by the personal representative, and the proceeds go into the estate account to pay claims and then the heirs.
  2. The estate deeds the house to the heirs, and they sell. The personal representative distributes the house in kind, the heirs record that deed, and they sell later as ordinary owners.
  3. The house never entered the estate. A transfer on death deed beneficiary or a surviving joint tenant owns the house at death and can sell without a probate case.

An heir who inherits under a will or under intestacy cannot sign a deed alone while the estate is open. Title sits with the personal representative under § 20-105.

Small estates do not change this for a house

The District's $40,000 transfer by affidavit cannot move real estate. The estate must "not include an interest in real property" (D.C. Code § 20-361(a), as amended by D.C. Law 26-164, a temporary act effective until March 27, 2027). The court-run small estate proceeding under D.C. Code § 20-351 covers estates of $80,000 or less, and a house counts toward that figure in full. Few D.C. houses fit under it. See D.C. small estate procedures for both routes.

Do you need probate in District of Columbia?

Answer a few questions to see whether District of Columbia probate is required and which process applies.

Take the 2-minute assessment
On this page

The Personal Representative's Power to Sell

Two paragraphs of § 20-741 carry the sale power. Paragraph (6) lets the personal representative "acquire or dispose of property, real or personal, including land in this or another jurisdiction, for cash or on credit, at public or private sale." Paragraph (25) lets the personal representative lease, grant options on, or sell any real or personal property of the estate, at public or private sale, for cash or on credit.

Three limits matter:

  • The will can restrict the power. Section 20-741 opens with "Except as otherwise validly limited by the will, this title, or by an order of Court." Read the will before you sign a listing agreement.
  • A house the will gives to a named person. Paragraph (25) excludes property the will devises or bequeaths by a specific gift. If the will leaves the house to a named person, get that person's written agreement or ask the court first.
  • Court permission is always available. D.C. Code § 20-742 lets a personal representative "at any time petition the Court for permission to act in any matter relating to the administration of the estate." A contested family or a below-market offer is a good reason to use it.

Buyers get strong protection. Under D.C. Code § 20-744, a person who deals with a personal representative in good faith and for value is protected as if the personal representative properly exercised the power. A will or court order limiting the power binds a buyer only with actual knowledge of it, except restrictions on a supervised personal representative that are endorsed on the letters. So expect a title company to ask for the letters of administration and check them for endorsements.

The flip side lands on the seller. D.C. Code § 20-743 makes a personal representative who exercises a power improperly liable to interested persons as a trustee of an express trust would be. Selling to yourself, a relative, or a friend at a low price invites that claim. For the rest of the job, see personal representative powers.

Creditors, Liens, and Timing

The sale often pays the estate's bills. D.C. creditors must present their claims within 6 months after the first publication of the notice of appointment, or the claims are barred against the estate, the personal representative, and the heirs (D.C. Code § 20-903(a)).

That bar does not touch a mortgage or other recorded lien. Section 20-903(b) says nothing in the claims rule affects an action to enforce a mortgage, judgment, or other perfected security interest on estate property. The mortgage gets paid from the sale proceeds at closing, the same as any other sale.

Many personal representatives sell during the 6-month window and hold the cash until the claim period closes. That keeps money on hand for late claims and avoids distributing too early. See D.C. creditor claims for how claims are presented and paid.

What the District Charges on the Deed

Two District taxes apply when a deed is recorded for a sale.

The deed transfer tax falls on the seller. D.C. Code § 47-903(a)(1) imposes it "on the transferor" at 1.1% of the price. If the seller fails to pay, the buyer becomes jointly and severally liable (§ 47-903(c)).

The deed recordation tax runs 1.1% of the price under D.C. Code § 42-1103(a)(1), and the parties to the deed are jointly and severally liable for it (§ 42-1103(c)). The sale contract decides who actually pays it.

Each tax adds 0.35% on top, for a combined rate of 1.45% each, unless the property is residential and sells for less than $400,000 (§ 47-903(a-4) and § 42-1103(a-4)).

Residential sale priceTransfer taxRecordation taxBoth taxes
$350,000$3,850 (1.1%)$3,850 (1.1%)$7,700
$600,000$8,700 (1.45%)$8,700 (1.45%)$17,400
$900,000$13,050 (1.45%)$13,050 (1.45%)$26,100

Transfers that owe no deed tax

  • The estate's deed to an heir. A deed from a personal representative acting under Title 20 to a distributee, with no additional consideration, is exempt from the recordation tax (D.C. Code § 42-1102(10)) and the transfer tax (D.C. Code § 47-902(18)). The tax comes due later, when the heirs sell.
  • A transfer on death deed at death. Section 47-902(26) exempts the transfer to a named beneficiary of a revocable transfer on death deed from the transfer tax.

Recording the Deed

The buyer, or the heir receiving the estate's deed, has to record it with the Recorder of Deeds within 30 days after it is signed (D.C. Code § 47-1431(a)). Missing that deadline adds a $250 penalty (D.C. Code § 47-1433(c)).

The Recorder of Deeds charges $25 to record a document other than a deed of trust or mortgage, and requires every signature to be notarized (OTR, General Recording Requirements and Fees). D.C. Code § 42-1211(a) adds a $5 surcharge per document. Each sale deed also goes in with a tax return signed by all parties (§ 42-1103(b) and § 47-903(b)).

The Recorder of Deeds sits inside the D.C. Office of Tax and Revenue at 1101 4th Street, SW, 5th Floor, Washington, DC 20024, phone (202) 727-5374 (OTR, Recorder of Deeds).

Selling After a Transfer on Death Deed

A transfer on death deed skips the estate. At the owner's death, the interest passes to the surviving beneficiary under D.C. Code § 19-604.13(a), and the beneficiary can sell as the owner. Three rules in that section shape the sale:

  • The beneficiary takes the house subject to every mortgage, lien, and other interest on it at death (§ 19-604.13(b)).
  • Two or more beneficiaries take equal, undivided shares with no right of survivorship (§ 19-604.13(a)(3)), so all of them sign the sale deed.
  • The deed passes the house without any covenant or warranty of title (§ 19-604.13(e)), so expect the title company to look closely.

There is one catch. Under D.C. Code § 19-604.15, a beneficiary is liable for allowed claims and family allowances if the probate estate runs short. D.C. Code § 19-601.02 caps that liability at the value received and requires the proceeding to start within one year after the death. A beneficiary who sells early should keep enough cash aside until that year passes. For the deed itself, see selling after a TOD deed transfer.

A surviving joint tenant takes the whole house at death. Section 19-601.02(a) leaves "a survivorship interest in a joint tenancy of real estate" out of that creditor reach.

The Stepped-Up Basis and Capital Gains

The income tax on a sale usually comes out small. IRS Publication 551 says the basis of inherited property is usually its fair market value on the date of death, or on the alternate valuation date if the estate elects it (IRS Publication 551). Your taxable gain is the sale price, minus selling expenses, minus that basis.

Here is how that plays out. A parent bought a Capitol Hill rowhouse for $90,000 in 1985. It is worth $700,000 at the parent's death. The heirs sell it a year later for $720,000 and pay $40,000 in selling costs. Their gain is $720,000 minus $40,000 minus $700,000, which is negative. They have a $20,000 loss on paper, and the 1985 price never enters the math.

Two more federal rules help. IRS Publication 544 says inherited property is treated as held longer than one year, regardless of how long you actually held it, so any gain is long-term (IRS Publication 544). And if the estate filed a federal estate tax return, the beneficiary may receive a Schedule A (Form 8971) reporting the value to use as basis (Publication 551).

The District follows federal income. D.C. Code § 47-1803.02(a) gives "gross income" the same meaning as IRC § 61, so a District resident reports the same gain on the D.C. return. Get a date-of-death appraisal early. It sets your basis and backs up the price. For more, read the stepped-up basis.

The District Estate Tax Is a Separate Bill

The District has its own estate tax, and the estate pays it, not the buyer or the heir who sells. For deaths in 2026 the exclusion is $4,988,400 (D.C. Office of Tax and Revenue, 2026 D-76 Instruction Booklet). The personal representative files and pays within 10 months after death (D.C. Code § 47-3705(a)).

The District has no inheritance tax for current deaths. Its estate-tax chapter applies to decedents dying on or after April 1, 1987 (D.C. Code § 47-3701). A large estate may need the sale proceeds to pay the estate tax before the 10-month deadline, which is one more reason the personal representative often sells during administration. See the District estate tax.

Selling With Several Heirs

During administration, co-owner disagreement matters less, because the personal representative holds title and can sell. After the estate deeds the house to several heirs, all of them must sign a private sale.

If one heir refuses, the others can go to court. D.C. Code § 16-2901(a) lets the Superior Court of the District of Columbia decree a partition on the complaint of a tenant in common "claiming by descent or purchase." When the property cannot be divided without loss, the court may order a sale and divide the money according to each owner's rights. A co-owner who collected rent for personal use may have to account to the others (§ 16-2901(c)).

Low-income heirs to District residential real estate that is in probate or has unclear title can get free help. The D.C. Department of Housing and Community Development's Heirs Property Assistance Program names AARP Legal Counsel for the Elderly and DC Affordable Law Firm as its providers (DHCD, Heirs Property Assistance Program).

Steps to Sell an Inherited D.C. Home

  1. Find out how the title passed. Check the recorded deed for a transfer on death deed or a joint tenancy. If neither applies, the house goes through the estate.
  2. Open the estate. Ask the Probate Division to appoint a personal representative and issue letters. See opening probate to sell.
  3. Read the will for limits. Look for a restriction on the sale power or a specific gift of the house.
  4. Order a date-of-death appraisal. It sets the heirs' basis and supports the price.
  5. Secure and insure the house. Section 20-741(12) lets the personal representative buy insurance against damage, loss, and liability.
  6. List and sign the contract as personal representative. Show the title company your letters.
  7. Close and record. Pay off the mortgage, pay the transfer tax, and record the deed within 30 days.
  8. Hold the proceeds. Keep the cash in the estate account until the 6-month claim period ends, then pay claims and distribute.

Common Questions

Can I sell an inherited house in D.C. before probate is finished?

Yes, if the seller is the personal representative. D.C. Code § 20-105 passes all of a decedent's property, real estate included, to the personal representative at death, and § 20-741 lets that person sell real property at a public or private sale without a court order unless the will, Title 20, or a court order limits the power. An heir named in the will or under intestacy cannot sign a deed alone until the estate distributes the house.

Do I need a court order to sell a house during D.C. probate?

Usually not. D.C. Code § 20-741(6) and (25) give the personal representative power to sell real property for cash or on credit, at public or private sale. The will or a court order can take that power away, and paragraph (25) leaves out a house the will gives to a named person. A personal representative who is unsure can ask the Probate Division for permission under § 20-742.

What taxes are due when an inherited D.C. house sells?

Two District deed taxes apply to the sale deed. The transfer tax under D.C. Code § 47-903 falls on the seller, and the recordation tax under § 42-1103 binds all parties to the deed. Each runs 1.1% of the price, plus an extra 0.35% each unless the property is residential and sells for less than $400,000. Federal income tax applies to any gain over the stepped-up basis.

Does D.C. tax the deed from the estate to the heirs?

No. A deed from a personal representative acting under Title 20 to a distributee, with no additional consideration, is exempt from the recordation tax under D.C. Code § 42-1102(10) and from the transfer tax under § 47-902(18). The deed taxes come due later, when the heirs sell to a buyer.

Do I owe capital gains tax on an inherited D.C. home?

Only on gain above your basis. IRS Publication 551 says the basis of inherited property is usually its fair market value on the date of death, and IRS Publication 544 treats inherited property as held longer than one year. D.C. Code § 47-1803.02 defines District gross income by reference to IRC § 61, so a District resident reports the same gain on the D.C. return.

What if the heirs cannot agree on selling?

During administration, the personal representative holds title and can sell. After the estate deeds the house to several heirs, every owner must sign a private sale. A co-owner can ask the Superior Court to partition the property under D.C. Code § 16-2901, and the court may order a sale and split the money when the property cannot be divided without loss.

Related Guides

This guide is general information about selling inherited real estate in the District of Columbia. Confirm current recording fees with the Recorder of Deeds and your basis with a tax professional, and talk with a licensed D.C. attorney about a contested sale or a partition.

Sources:

It is not legal advice.

Information current as of October 5, 2026

Settled Estate is not a law firm, and this content is for informational purposes only and does not constitute legal advice. Probate laws and procedures in District of Columbia can change. Consult with a qualified attorney for advice specific to your situation. Full disclaimer.

All District of Columbia guides← Back to all articles

More District of Columbia Resources

Explore the rest of the District of Columbia probate hub.

Do I need probate?5 pages
For the executor4 pages
Money and taxes5 pages
Family and inheritance5 pages
Transfer assets4 pages
File and learn5 pages

On this page