An heir has the right to sell his inheritance share in its entirety through a contract for the sale of an inheritance. Under this contract, the buyer acquires all the rights and obligations which the seller-heir has inherited, including immovable property or parts thereof. The buyer may be either another heir or a third party.
Subject matter of the contract for the sale of an inheritance
According to Article 212 of the Obligations and Contracts Act (ЗЗД), the contract for the sale of an inheritance transfers the entire aggregate of rights, obligations and factual relations of the heir.
Because of this particularity, the contract does not list the specific assets (for example, immovable property, motor vehicles) or obligations (inheritance debts). Instead, a single sale price is agreed for the entire inheritance, without an allocation of the value of the individual assets.
Obligations of the parties
The seller must prove only that he has the capacity of an heir.
If, before the sale, he has sold some inheritance asset or has received an inheritance receivable, he is obliged to hand over to the buyer the value received.
If the seller has paid some inheritance obligation, the buyer must reimburse him the corresponding amount.
Status of the buyer
The transfer of the inheritance does not change the capacity of the heir.
The buyer of the inheritance does not become an heir of the deceased decedent, but acquires only the rights and obligations that are included in the sold inheritance.
Scope of the sold inheritance
❗ Important: The sale of an inheritance includes only those rights and obligations that the heir held at the moment of the opening of the succession, i.e. as at the date of the decedent's death.
If, after the sale of the inheritance, the original heir acquires additional rights, for example through a renunciation of the inheritance by another heir, these newly acquired rights do not become part of the sold inheritance and remain the property of the original heir.
Form of the contract
The contract for the sale of an inheritance must obligatorily be concluded in written form with notarial certification of the signatures.
Where the inheritance contains only immovable property, this simplified form is also applicable. A notarised declaration concerning the property owned by the deceased is usually also added to the contract.
Sale of an inheritance including immovable property
❗ Important: Only a contract for the sale of an inheritance that includes immovable property may be concluded in written form with notarial certification of the signatures.
All other contracts that lead to the transfer of an inheritance including immovable property must be executed by a notarial deed.
This includes:
- A contract for the gift of an inheritance including immovable property
- A contract for the sale of an inheritance against an obligation of maintenance and care
- Other contracts leading to the transfer of rights over immovable property
If the sold inheritance contains immovable property, the contract must obligatorily be entered in the Registry Office at the location of the property.
Tax treatment of the sale of an inheritance
❗ Important: On the sale of an inheritance, NO local tax is due for the acquisition of property for consideration.
According to the practice of the National Revenue Agency (НАП) and the municipalities, the immovable properties, the rights in rem over them and the motor vehicles that are included in the inheritance are not subject to local tax under Article 44 of the Local Taxes and Fees Act (ЗМДТ).
The reason for this is that the object of the transfer is not specific assets, but the inheritance as an aggregate of rights, obligations and factual relations.
This is one of the main advantages of the contract for the sale of an inheritance.
Rescission of a contract for the sale of an inheritance
If the sold inheritance contains immovable property, the rescission of the contract for the sale of an inheritance under Article 212 of the ЗЗД may be effected solely through the courts.
If you need legal advice in connection with inheritance rights, contact us on telephone 0887550706 or by e-mail: [email protected]
