For Asians, owning a piece of property and passing them down to the next generation is not something out of the norm. Death is inevitable and we all have to go through it, but when the owner of a home is deceased and the next of kin wants to sell off the home if they want to migrate or work elsewhere, the process can be quite complicated. It is important to know how to go about it to avoid any hassle and to ensure the process does not have any hiccups.
So, the key question is, can a home be sold off if the owner has passed on?
The answer is yes, but you need to obtain the unanimous consent of the heirs of the deceased. In order to sell off the house, you will need to get a court order as well as necessary documents for the process to kick off.
Should your home value is less than RM2 million, you will need to refer to the Small Estates Distribution Act 1955 (Act 98). If the value of the home is more than RM2 million, you will need to refer to the Probate and Administration Act 1959 (Act 97).
These are some of the documents you will need to prepare before any initiation process occurs.
You will require FORM F (BORANG F), a Letter of Administration that grants the authority to sell a house or property whose owner has died. It is vital to make sure that the beneficiary authorized in the Letter of Administration agrees to sell the house, then the Power of Attorney Letter will be obtained within one to two years. Without this letter, the house is not eligible for sale.
The second document you need is the Memorandum of Sales (MOS) or Agreement to Purchase (ATP) which needs to be signed together with the new buyer along with the deposit money. If it involves property insurance claim proceedings, then it may take some time.
The three conditions under which a deceased can leave his or her assets are termed testacy, partial testacy and intestacy.
Status of inheritance
- With a valid will, the assets of the deceased will be distributed according to the terms of the will.
- With an incomplete will that is insufficient to cover the entire estate of the deceased, the assets stated in the will be distributed accordingly; while the other properties will be distributed according to the Distribution Act 1958.
- Without a valid will, the properties of the deceased will be distributed according to the Distribution Act 1958.
In short, it is important to get a will drawn up to avoid any complications especially if there are multiple heirs to the property. This also saves the headache and severance of any relationships within the family.
[Image source: Religion photo created by jcomp]
How much housing loan you can get?
How much is your property worth?
Interested in new launch property?
Looking for property for sale or rent?