Selling an Inherited House in Maryland
Yes. Once it's clear how title passed, an inherited Maryland house can be sold. A survivorship deed, a tenancy by the entirety or, starting October 1, 2026, a transfer-on-death deed may already have made it yours. Otherwise the personal representative, who usually doesn't need a court order, sells it or deeds it to the heirs. After that come the practical questions: insurance, the next tax bill, what the house is worth in its current shape, whether Maryland's inheritance tax applies to you, and what everyone wants to do.
Reviewed by Dennis Fassett, founder of Dennis Buys Houses · Updated November 2026
For Maryland heirs deciding what to do with a house, from Annapolis and Glen Burnie to the rest of the state. General information, not legal or tax advice.
How Did the House Pass?
- Surviving spouseA tenancy by the entirety goes straight to the survivor.
- Joint tenantThe surviving joint tenant owns it.
- TOD deedFor deaths on or after October 1, 2026, the beneficiary named in a recorded TOD deed takes it, subject to existing liens. (2026 Md. Laws ch. 751 (Transfer-on-Death Deed Act))
- TrustThe trustee follows the trust.
- The estateThe personal representative controls it. (See How to Sell a House in Probate in Maryland.)
Early Steps
- Update the insurance.
- Find the mortgage, tax and HOA accounts.
- Confirm who's authorized to sign.
- Secure the house and check it often.
- Ask each heir what they actually want.
Maryland's Two Death Taxes
Maryland is the only state with both an inheritance tax and an estate tax. The inheritance tax is 10% of what non-exempt heirs receive, such as nieces, nephews, cousins and friends. Spouses, children and other lineal descendants, parents, grandparents and siblings are exempt. The estate tax only reaches estates above $5 million. If you're not exempt, settle the tax question before anyone divides the proceeds.
Want a Number to Compare Against?
Describe the house and the family members involved. I'll put a written as-is price in front of everyone, and tell you plainly if an agent would beat it.
Four Ways Forward
Live in It
The Homestead Tax Credit belonged to the previous owner. Apply for your own with the State Department of Assessments and Taxation if you move in.
Rent It
Maryland's 2024 changes capped deposits at one month's rent, and many counties add licensing rules. (See Selling a House With Bad Tenants in Maryland.)
Update and List
Typically the best price if the heirs agree on the budget and someone can run the work.
Sell As-Is
When the roof, HVAC or plumbing are worn out, or the house is still full, an as-is sale lets you skip all of it. Going as-is with a real estate investor keeps things simple: no parade of buyers through the house, no contractors, no weekend spent hauling out furniture, and the closing happens on your timeline. There's no clean-out when you sell to Dennis Buys Houses. Keep what you want, leave what you don't, and we handle the rest. If something personal or valuable turns up, we make sure it gets back to you.
Putting a Realistic Price on It
SDAT's number is an assessment, not an appraisal. Pull recent comparable sales on nearby streets, then be honest about the roof, HVAC, plumbing, electrical, foundation and any water intrusion. In Anne Arundel County, distance to the water, the school district and the commute can swing the price a lot.
Disclosure When You Sell
Maryland sellers give buyers either a property condition disclosure or a disclaimer saying the house is sold as-is, with some exemptions, including certain sales by personal representatives. Either way, you have to disclose latent defects you know about. (Real Prop. § 10-702)
Sorting the House
Start with the papers, pictures, jewelry and heirlooms. After that, the rest can be divided among family, sold, donated or simply left for an as-is buyer.
Sharing It With Siblings
- Sell togetherAgree in writing on price, decision-maker and how costs come out.
- Buy each other outBase it on an appraisal or agreed figure.
- A sibling living thereSet terms for expenses and an end date.
- GridlockOne co-owner can petition the circuit court to order the property sold and the money split.
The Clocks That Keep Running
Maryland property taxes are overdue on October 1 and pick up interest every month after that, and unpaid bills can go to the county's annual tax sale. (See Selling a House With Delinquent Property Taxes in Maryland.) A mortgage in default leads to a court-supervised foreclosure. (See Selling a House in Foreclosure in Maryland.) An empty house has its own risks. (See Selling a Vacant House in Maryland.)
Income Taxes on a Sale
The federal basis of inherited property usually resets to its value on the date of death, which keeps the taxable gain on a quick sale small. An appraisal as of that date is worth getting. Maryland and its counties also tax income, so check with a tax professional, and remember the inheritance tax is a separate question.
Selling From Somewhere Else
Maryland title companies routinely handle remote signings. What's hard is looking after the house through humid summers and winter storms from a distance.
A Seller Who Chose Done Over More
After his father died, a seller living out of state called about the family home. It was dated but sound, and I told him more than once that listing would probably get him more. He sold to me anyway, because wrapping it up mattered more than the extra dollars, and he never flew in; the money was wired. I'll show you both options every time and let you decide. (Full story on my About page.)
Mistakes Maryland Heirs Make
- Letting the insurance lapse in the deceased owner's name.
- Dividing proceeds before paying inheritance tax.
- Moving in without applying for the Homestead Tax Credit.
- Letting the October 1 tax deadline pass.
- Skipping a latent-defect disclosure.
- Selling without a written agreement among siblings.
Where I Fit, and Where I Don't
Heirs in Maryland tend to call when the place needs serious work, still holds a lifetime of belongings, raises title or inheritance-tax questions, or nobody lives close by.
Dennis Buys Houses also won't ask you to clear the place out. Whatever stays behind becomes our job.
A well-kept house and a family that agrees on listing will usually do better with a Realtor. I'll tell you if that's your situation.
Either way, I'll give you a straight, upfront answer on whether I'm a good fit.
A Seller in Their Own Words
“Thanks for buying my Mom’s house. I didn’t know what to do after three real estate agents told me they wouldn’t list it in the condition it was in. I appreciate you being flexible with me and giving me time to remove the pictures and other valuables that my Mom had. Thanks also for not pressuring me to sell like some of the other guys that sent letters. The process was stressful enough without being pressured to sign a contract.”
Read more reviews from homeowners I've worked with
Frequently Asked Questions
Usually. The personal representative can sell without a court order unless the will restricts it.
Heirs outside the exempt group pay 10%. Spouses, children, parents, grandparents and siblings are exempt.
No. Remove the keepsakes and leave the rest; in an as-is sale, Dennis Buys Houses handles what's left.
Often little on a prompt sale because of the stepped-up basis.
A disclosure or an as-is disclaimer, unless exempt, and always any latent defects you know about.
A co-owner can ask the circuit court for a partition sale, but most families reach a deal before a judge has to.
Your county Register of Wills, SDAT and land records office have the key records. Key law: Real Prop. § 10-702 (disclosure) and 2026 Md. Laws ch. 751 (Transfer-on-Death Deed Act).
Maryland Selling Guides
- How to Sell a House in Probate in Maryland
- Selling a Vacant House in Maryland
- Selling a House With Bad Tenants in Maryland
- Selling a House in Foreclosure in Maryland
- Selling a House With Delinquent Property Taxes in Maryland
Inherited a Maryland House You'd Rather Sell?
Send the address and a word about the heirs. I'll respond with a real as-is number, or steer you toward a buyout or listing if either fits better.