The #1 Guide to Sell Inherited Land in Florida
Selling inherited land in Florida can feel like stumbling upon a hidden treasure chest—you’re thrilled with the possibilities, but there are a few challenges before you can cash in. Florida, known for its diverse landscape and booming real estate market, offers some unique opportunities and hurdles when it comes to selling inherited property. For instance, the average price per acre of land in Florida is around $10,000 as of 2023, but that number can vary widely depending on the location—whether it’s rural farmland in the northern part of the state or prime real estate near coastal areas like Miami or Naples.
What sets Florida apart from other states are its specific probate laws, the prevalence of conservation easements, and the potential for inherited properties to be located in flood zones or hurricane-prone areas. Many Floridian families pass down land across generations, particularly in rural or agriculturally rich regions, which can sometimes lead to complex inheritance situations involving multiple heirs. If you’ve inherited land in Florida, you’re likely dealing with both financial and legal considerations that make the process different from other states—but with the right approach, you can turn this family legacy into a profitable opportunity!
How to Sell Inherited Property
Selling inherited land in Florida comes with both opportunities and challenges. With the average price per acre of rural land reaching $10,000 in 2023, Florida ranks higher than many states in terms of land value. Thanks to its growing population and attractive climate, Florida is a prime spot for development. Demand for suburban and rural properties has been surging, especially in areas near Miami, Tampa, and Orlando. As more people move to the state, developers are eagerly eyeing available land for residential, commercial, and agricultural use.
What makes Florida unique compared to other states is its homestead exemption laws, which offer significant property tax breaks for primary residences. In some cases, this exemption can complicate the selling process of inherited land if the property had been homesteaded by the previous owner. Additionally, Florida’s proximity to the coast increases the chances of inherited land being located in flood zones, which might require additional planning or disclosures before selling.
1. Gather the Necessary Documents
The first step in selling inherited land in Florida is getting all the paperwork in order. In many cases, probate is required to verify legal ownership of the property, and about 65% of estates in Florida go through this process. Thankfully, Florida’s probate process typically takes 6-9 months, which is faster than in some other states. If the property is still held in the estate’s name, you’ll need a probate court order to sell it, along with key documents like the property deed and tax records.
Florida has strict rules about clear title transfers, and inherited land often involves questions around joint tenancy or right of survivorship. It’s crucial to verify these details to avoid legal disputes. Additionally, many rural properties in Florida may be subject to conservation easements, adding complexity to the sale.
To avoid delays, make sure you gather the following:
- Proof of Inheritance: Probate documents, a will, or a letter of administration showing you’re the legal heir.
- Property Title: If you don’t have it, you can request a copy from the local county courthouse.
- Property Tax Records: Verify there are no unpaid taxes, as delinquent taxes in Florida can lead to liens on the property.
- Outstanding Liens: Conduct a lien search to check for unpaid debts or mortgages tied to the property.
2. Secure Legal Ownership of Your Land
In Florida, securing legal ownership after inheritance isn’t automatic. The property deed must be updated to reflect the new owner’s name, and any unresolved heirship issues need to be settled. This is where Florida’s legal system shines—compared to other states, Florida offers the Homestead Property Exemption, which can exempt a large portion of the property’s value from creditors during probate. This can make inheriting land here more financially favorable if the property was the decedent’s primary residence.
Unlike in states like Texas, where probate can sometimes be bypassed through Transfer on Death (TOD) deeds, Florida requires most estates to pass through probate unless specific estate planning was done in advance. However, Florida probate law allows for a streamlined process known as summary administration for smaller estates, which can speed up the process significantly if the estate’s total value is under $75,000.
3. Pay Off Any Unpaid Property Taxes
While Florida might be famous for having no state income tax, that doesn’t mean you’re off the hook for property taxes. In 2023, the average effective property tax rate in Florida was 0.83%, which is relatively moderate compared to other states. However, when inheriting land, it’s essential to check if there are any unpaid taxes, as delinquent taxes can quickly accumulate. Florida has strict rules on tax liens, and if property taxes are left unpaid for more than two years, the county can sell a tax certificate, leading to potential foreclosure if the situation isn’t resolved.
Florida’s property tax rules also differ based on the land’s use. Agricultural land benefits from Greenbelt laws, which lower the tax rate significantly if the land is used for farming or timber. However, if the land is repurposed for development, those tax breaks could disappear, meaning higher taxes for new owners.
4. Clear Any Existing Liens on the Property
Clearing liens is a crucial part of selling inherited land in Florida. Whether it’s a mortgage lien, an unpaid contractor debt, or a tax lien, any unresolved financial obligations tied to the land need to be cleared up. Florida has specific rules on how long liens can remain active, typically for up to 20 years in the case of a mortgage. Any liens discovered during a title search must be resolved before the property can be sold.
Florida stands out due to its high number of HOA (Homeowners Association) properties, particularly in suburban and coastal areas. These properties often come with additional HOA dues, and unpaid dues can result in liens on the property. This isn’t as common in rural states like Montana or Wyoming, where homeowners associations are rare. Here are some liens to watch out for:
- Mortgage Liens: Any outstanding balance on a loan taken out against the land must be repaid.
- Mechanic’s Liens: These result from unpaid contractor fees for work done on the property.
- Tax Liens: Unpaid property taxes could result in liens that need to be cleared before any sale can proceed.
5. Find a Reputable Buyer
When it comes to finding a buyer, Florida’s market is booming. Land buyers in Florida vary from developers looking to build residential communities near the coasts to investors hoping to snatch up agricultural land in the state’s interior. Because of Florida’s diverse landscape, you’re more likely to find specialized buyers compared to states like Georgia or Alabama, where the market for rural land may not be as competitive.
One thing that makes Florida unique is its high demand for vacation properties and second homes. Many buyers from other states, particularly in the Northeast and Midwest, are looking to purchase land in Florida for future retirement or investment. If your inherited land is near popular tourist areas, you may attract buyers who are willing to pay a premium for proximity to beaches or major attractions.
Depending on your goals, here are some options:
- Real Estate Agent: A local real estate pro will have the expertise and connections to find the right buyers, market your land effectively, and handle the legal stuff so you don’t have to sweat it.
- Sell by Owner (FSBO): If you’re confident in your ability to manage the sale, listing the land yourself could save you on commission fees. Just be ready for some extra legwork when it comes to negotiating and paperwork.
- Land Buying Companies: If you want a no-hassle, quick sale, companies that specialize in buying land, like Bubba Land Company or similar, can be a great option. They often make cash offers and help speed up the process, letting you avoid the complexities of the traditional sale route.
| Selling Land with an Agent | Selling Land Yourself (FSBO) | Selling to Bubba Land | |
|---|---|---|---|
| Commissions / Fees | If they even accept the listing, it’s typically 10% Commission on the Sales Price for Specialized Land Agents. | Flat-Rate MLS fees, Specialized Land Selling Website fees, & Marketing Fees. Minimum $1,000 in Fees. | $0 Fees: No Commissions or Hidden Costs. |
| Average Days Until Sold | Typically 6 months, depending on the Asking Price. If priced too high you could be waiting years! | Typically 12 months for FSBO, depending on the Asking Price. If priced too high you could be waiting years! | Less than 48 Hours: We can Get You an Offer! |
| Number of Showings | Depends on Asking Price & Agent’s Motivation. The higher the price, the longer it’ll take to sell. | Typically less showings than working with an Agent. Online Platforms outside the MLS attract less buyers. | None: No Showings Required. |
| Who Pays Closing Costs? | Seller typically pays $2,000 minimum for Closing Costs, plus 10% to the Sales Agent. | Seller typically pays $2,000 minimum for Closing Costs. | None: We Cover All Costs! |
| Closing Date | Typically 45-90 days after accepting an offer. | Typically 45-90 days after accepting an offer. | ASAP: You Pick the Date! |
| Costs for Land Improvements | Varies depending on the condition and marketability of the land. | Depends on what’s needed to make the land attractive for sale. | None: We Buy As-Is! |
Will I Need to Go Through Probate to Sell My Inherited Land?
Ah, the dreaded word—probate. While it might sound daunting, in Florida, probate is a standard part of the process when it comes to selling inherited land. Probate is simply the court-supervised procedure of distributing a person’s assets after they pass away. Unless the property was held in joint tenancy or placed in a living trust, most inherited land in Florida will go through probate before it can be sold.
Florida’s probate process is generally faster than in some other states, typically taking between 6-12 months, depending on the complexity of the estate. However, for more complicated estates, it can take longer, especially if there are multiple heirs or disputed wills. In terms of cost, probate expenses can range from 3% to 7% of the estate’s total value, which is why planning for these costs is essential.
Florida also stands out due to the prevalence of out-of-state heirs, given its popularity as a retirement destination. Many people inherit land in Florida while living in other states, which can complicate the process further, especially when it comes to managing legal matters from afar. Here’s how to tackle it:
1. Get Professional Guidance
When selling inherited property in Florida, it’s crucial to consult with a probate attorney or real estate lawyer. They’ll guide you through the paperwork, ensure that all heirs are on the same page, and that you’ve met the legal requirements. This is especially important in Florida, where laws around homestead property can complicate inheritance and probate, especially if the land was used as the primary residence by the deceased.
2. Determine If Probate Is Necessary
Not every property needs to go through probate. If the property was held in a living trust or had joint ownership with rights of survivorship, probate may not be required. Florida also offers a summary administration process for smaller estates with assets under $75,000, excluding real estate. This can significantly reduce the time and costs associated with probate. Summary administration is one of the most efficient options Florida offers, making it an attractive route for heirs with simpler estates.
Florida is also unique in that it allows non-resident personal representatives to handle the probate process, which is a relief for heirs who don’t live in the state.
3. Begin the Probate Process (If Required)
If probate is necessary, the first step is to file the will with the county probate court and have an executor appointed. The executor’s responsibilities include gathering all assets, paying off any outstanding debts, and ensuring that the heirs receive their inheritance. In Florida, probate can be slowed down by unresolved tax debts, property liens, or disputes between multiple heirs, so it’s essential to clear up these issues as soon as possible.
Florida’s real estate market, especially in areas prone to hurricanes or located in flood zones, can sometimes bring additional hurdles to the probate process. For example, property insurance or flood insurance policies may need to be updated or clarified before the sale.
4. Address Property-Related Financial Matters
During probate, all financial obligations tied to the property must be addressed. This includes any unpaid property taxes, mortgages, or liens on the property. Florida’s property tax rate averages about 0.83%, but certain exemptions, such as the Florida Homestead Exemption, can influence the total taxes due. If any tax certificates have been issued for unpaid taxes, they will need to be redeemed before the property can be sold.
5. Plan for Inheritance & Capital Gains Taxes
One key benefit of inheriting property in Florida is that the state doesn’t impose a state inheritance tax. However, you’ll still need to consider federal estate taxes for larger estates. Additionally, any profit from the sale of the inherited land that exceeds its stepped-up basis—the value at the time of the original owner’s death—may be subject to capital gains tax. The stepped-up basis can significantly reduce the amount of capital gains tax owed, as the property’s value is typically higher at the time of sale than when it was originally purchased. Consulting with a tax advisor can help ensure you’re prepared for any tax obligations tied to selling the property and avoid unnecessary complications during the sale.
6. Finalizing the Sale
Once the probate process is complete and all financial matters are settled, you’re ready to finalize the sale. Florida’s real estate market remains highly desirable, particularly for vacation properties, agricultural land, and retirement developments. Whether you choose to sell the property through a real estate agent, FSBO (For Sale By Owner), or to a land-buying company, having all the legal and tax paperwork in order will ensure a smooth and efficient transaction.
Florida also offers unique opportunities for land sales, thanks to its popularity as a retirement and vacation destination. If your land is located in a high-demand area, such as near the coast or inland near development zones, you may attract buyers who are willing to pay a premium for the property’s location. Keep in mind that Florida is one of the few states where mineral rights and water rights can be sold separately, potentially adding value to the transaction.
Partnering with Bubba Land for Seamless Land Transactions
Buying or selling land can be a daunting task, laden with complex legal processes and extensive paperwork. At Bubba Land, we understand that your time is valuable, and our goal is to make your land transactions as smooth and stress-free as possible. By partnering with a professional land company like ours, you can avoid the pitfalls and costly mistakes that often come with navigating land deals on your own.
- No Realtor Fees or Closing Costs: Sell directly to Bubba Land and keep more money in your pocket.
- Hassle-Free Process: Skip the marketing and showings; we make direct offers for a quick sale.
- Fast Cash Offers: Get paid quickly, without the long wait.
- Straightforward Transaction: No complicated negotiations—just a simple, direct sale.
- Reduce Risk: Sell quickly to avoid long listing periods and potential property issues.
In the land business, it’s important to partner with a company that has a proven track record and a commitment to integrity. Bubba Land is dedicated to providing you with a seamless, hassle-free experience, and we pride ourselves on being a trustworthy partner in your land journey. Whether you’re looking to sell quickly for cash or need assistance navigating a complex land purchase, we’re here to help.
Conclusion on Selling Inherited Land in Florida
Selling inherited land in Florida can feel like navigating unfamiliar waters, but with the right knowledge and approach, it can turn into a rewarding experience. Whether you’re dealing with probate, gathering essential documents, or figuring out the tax implications, each step brings you closer to unlocking the full potential of your property. Florida’s booming real estate market, coupled with its unique inheritance and land laws, makes it a prime location for maximizing the value of inherited land.
Remember, consulting with a probate attorney or real estate expert can streamline the process and ensure that all legal and financial hurdles are handled smoothly. Whether your property is near the beach, nestled in Florida’s rural heartland, or sitting on valuable timber or mineral rights, taking the time to handle these details can help you turn this family legacy into a financial win.
Ready to get started? Now that you’ve got the roadmap, it’s time to take the first step and make the most of your inherited land in the Sunshine State.
Frequently Asked Questions (FAQs)
1. Do You Need to Go Through Probate to Sell Inherited Land in Florida?
Yes, probate is usually required to sell inherited land in Florida unless the property was held in a living trust or had joint ownership with rights of survivorship. Probate ensures the legal transfer of ownership from the deceased to the heirs.
2. How Long Does Probate Take in Florida for Selling Inherited Land?
In Florida, the probate process typically takes 6 to 12 months, depending on the complexity of the estate. However, for smaller estates valued under $75,000, summary administration can speed things up significantly.
3. Are There Taxes When Selling Inherited Land in Florida?
Florida does not impose a state inheritance tax, but you may have to pay capital gains tax if the land’s sale price exceeds its stepped-up basis (the value at the time of inheritance). Federal estate taxes could apply to larger estates.
4. Can I Sell Inherited Land Before Probate Is Completed?
No, in most cases, the land cannot be sold until the probate process is complete. However, in some instances, you can sell during probate with court approval, but all heirs must agree.
5. What Documents Are Needed to Sell Inherited Land in Florida?
You’ll need the property title, proof of inheritance, the deceased’s death certificate, and property tax records to sell inherited land. If there are any liens or unpaid taxes, those must be addressed before the sale can proceed.
Bubba Peek is an experienced real estate investor focused on land acquisition. He holds a Bachelor’s in Finance and a Master’s in Real Estate (MSRE) from the University of Florida, along with the prestigious Certified Commercial Investment Member (CCIM) Designation, held by only six percent of real estate professionals. With over a decade of experience, Bubba blends financial expertise and market insight to deliver outstanding results. As founder of Bubba Land Company, he’s known for offering landowners efficient, hassle-free sales solutions.