Inheriting a property in the canton of Vaud: sell, keep or rent? All the steps you need to make the right decision
A house, a bereavement, a decision to make
Losing a loved one is always a painful time. But sometimes the grief is quickly followed by complex procedures, especially when real estate is part of the inheritance. At times like these, it’s easy to feel overwhelmed: should you sell? Keep it in the family? Rent it out? What do you do when your co-heirs don’t agree?
The purpose of this article is to provide support for those faced with this situation. Here you’ll find a structured procedure, sound legal explanations and practical advice on how to avoid the pitfalls and make the right decisions.
Contents
- Understanding joint inheritance (heirship)
- Accepting or refusing succession
- Obtain an heir’s certificate
- If you are several heirs: selling in joint ownership
- What to do if you disagree?
- Taxation in the canton of Vaud
- Options other than sale (keep or rent)
- How to sell fast
- Mortgages, equity and financial viability
- Conclusion: managing an inheritance also means taking care of your family
Understanding the hereditary community
When a person dies, his or her heirs automatically form a community of heirs, more commonly known as a “heirship”. This is a form of collective ownership in which all the deceased’s assets are held in common by all the heirs. Each member owns an abstract share, but none can dispose of the property alone. All major decisions, including the sale of property, must be taken unanimously.
This community has no time limit: it can last for months, years or even decades if it is not dissolved. And the longer it lasts, the more complex it becomes, because when one heir dies, his own heirs join the community, making decision-making even more difficult.
Accepting or refusing succession
Before taking any action, each heir must decide whether to accept or refuse the succession. There are three options:
- Pure and simple acceptance: you inherit the assets, but also the debts.
- Acceptance under benefit of inventory: allows you to analyze whether assets cover liabilities before making a commitment.
- Repudiation: renouncing the entire estate.
You have three months from the official announcement of the death in which to make your decision. This choice is essential, because in the event of acceptance, even tacit, you are jointly and severally liable with the other heirs.
Obtain an heir’s certificate
To sell, rent or even access the deceased’s bank accounts, it is essential to obtain an heir’s certificate. This official document proves your status as heir, and is required by the Land Registry for any property transfer. It is issued by a notary or by the competent authority in the canton of Vaud.
It generally costs between CHF 1,000 and 2,000, and can take from two weeks to a month to be issued. It’s an essential preliminary step, often overlooked, but one which determines all subsequent steps.
If you are several heirs: selling in joint ownership
When several heirs receive a property together, they become co-owners. No one can sell the property alone, even if they hold a majority of the shares. All decisions must be unanimous, which can slow down or even block the process. To sell, the written agreement of all heirs must be obtained.
It is strongly recommended to have the property appraised by one or even two real estate experts, to obtain an objective average. Once the valuation has been carried out, a
What to do if you disagree?
Conflicts between heirs are unfortunately common (financial issues, attachment to the property, personal disagreements). When no consensus can be reached, mediation can be a useful option: a neutral professional helps the parties reach a compromise.
If this solution fails, one of the heirs may bring an action for judicial partition. The court can make a decision, even if it means auctioning off the property if no repurchase is possible. This procedure is long and costly, but remains a way out when all else fails.
Taxation in the canton of Vaud
In the canton of Vaud, direct heirs and children are taxed on their inheritance share from CHF 250,000 upwards. The rate is progressive and varies according to the amount received (around 3.3% on inheritances of CHF 1 million).
In addition to this tax on inherited shares, if the property is sold, there is also atax on the property gain. This is calculated on the capital gain between the sale price and the initial purchase price by the deceased. The period of ownership runs from the date of purchase by the deceased, not from the date of death. In the canton of Vaud, years of occupancy as a principal residence count double to reduce the rate: it starts at 30% if held for less than a year, and drops to 7% after 24 years.
Other options than selling
Selling is not the only option. Some heirs choose to keep the property, taking it over in their own name. This implies buying out the shares of the other co-heirs, which presupposes sufficient financial capacity. Others prefer to
How to sell fast
Certain situations call for a quick sale: the need for liquidity, a blocked estate, a move abroad, or a desire to move on. In such cases, it’s crucial to :
- have the property appraised quickly and professionally,
- set a price in line with the market,
- entrust the sale to a professional: showcasing, organizing visits, screening buyers, providing administrative support.
You save time, secure the transaction and avoid costly errors.
Mortgages, equity and financial viability
Inheriting a house also means inheriting its mortgage. You need to check whether the heir can take over the mortgage. The good news is that, unlike a conventional purchase, you don’t need to provide 20% of your own funds, since the property has already been acquired.
The bank does, however, check that the debt ratio remains within norms. In Switzerland, mortgage costs (interest, maintenance, amortization) must not exceed 33% of annual income. If this threshold is exceeded, partial repayment may be required. In some cases, it may be possible toincrease the mortgage to finance renovations – depending on the value of the property and the soundness of the application. Think long-term: when you retire, your income drops, which can make it difficult to maintain the mortgage.
Conclusion: managing an inheritance also means taking care of your family
Inheriting a home is a great responsibility. It’s a time of transition, sometimes painful, but also an opportunity to make the right decisions to honor the memory of the deceased.
It’s not just a real estate transaction, but a human step, full of meaning and memories. Taking the time to understand the rules, to consult the right professionals, and to discuss the matter openly with the other heirs will help you move forward serenely.
Because a family property is more than an asset: it’s a piece of history. And that history deserves to be passed on with care, respect and intelligence.
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