Selling share of inherited property

[Charley50]

My sister and I inherited my parent's house (Estate was spilt two ways in will). She has been living there since my mum died, two years ago.

I have agreed for her to buy my share. I'm using this money to buy my first property (I'm currently renting).

We are using solicitors. I'll ask them as well, but do the solicitor's fees for the sale come from the Estate? It is the Estate selling a share to my sibling, as far as I am aware.

What makes you think the estate is selling a share?

If the estate has been distributed, the house currently belongs to you and your sister. Your sister is therefore buying from you, not from the estate. You and your sister therefore each need to pay your own solicitor's fees.

If the house were being sold to a stranger, who would any what? You and sister would pay the selling fees, the buyer would pay buying fees.

Thanks both. The Estate isn't distributed yet; selling my share is part of the distribution. If I'm solely liable, I'd have two sets of solicitor fees (another one when I buy my place). I think the Estate is selling to my sibling.

I wouldn't think that. You own 50% which you are selling to your sister. Whenever you sell a house you have to pay legal fees, however you are saving on estate agent fees so are better off than if both you and your sister were selling.

But nice try 🤷

Or are you saying the estate will cover both yours and your sister's legal fees, in which case it would be fair and I apologise as I misunderstood.

No I'm saying the Estate is selling a share of itself, so the Estate covers the sale?

My sister has lived rent-free in the house for two years, will not have to pay Stamp Duty or CGT. I'm not trying to pull a fast one, just wondering what is the correct procedure. Got a couple of conflicting answers so far.

I'd rather just she use a solicitor, and we get the title deeds changed by her, with a transfer of funds done without a solicitor, if I'm expected to pay all of the legal fees for the sale, plus for my purchase. If the Estate pays, the cost is shared between my sister and me, which seems fair. It's a headache.

As long as there’s no issue with your sister on this score, I would expect to wrap it up within the estate. Or you both pay 50-50 - which amounts to the same thing.

Is your Sister getting a mortgage to help her buying you out? If so it will have to be dealt with by separate solicitors. The costs of you selling will be paid for by you and not the estate as they will come out of your sale proceeds.

The costs of you selling will be paid for by you and not the estate as they will come out of your sale proceeds

Indeed. You will end up paying regardless. Either you pay direct or the estate pays using part of the proceeds of sale, so you end up with less. However, if the house has not been transferred to you and your sister, you are correct that the estate will be selling the house.

Thanks for the advice so far. The house hasn't been transferred to us both, it is still in my mum's name. If the Estate pays, in effect it means I pay half and sister pays half, which is fine by me.
If I'm liable, I pay it all, which isn't fair.
Yes she will be getting a mortgage to buy me out.

@Charley50

You have been given advice by phr47bridge. If you're not happy with that, contact a solicitor.