Must we renovate the house before we sell it?

No. A house in need of renovation can be sold in its present state — to people who intend to do it up or develop it themselves anyway. That spares the community of heirs a rebuild and bridging finance. The price then reflects the condition.

Can we exclude liability for defects?

When selling a used house an exclusion of liability for material defects is common — “bought as seen” (section 434 BGB). But the seller cannot invoke it insofar as they have deliberately concealed a known defect (section 444 BGB).

Must we disclose known defects?

Yes. What you know about the house — damp, rot, a leaking roof, contaminated soil — belongs disclosed. Open disclosure protects the heirs from later claims and from the buyer’s blanket markdowns.

Can we sell if not all co-heirs agree?

No. The sale of the house is borne by the community of heirs jointly; it requires the consent of all co-heirs (section 2040 BGB). So the family agreement comes before the market — we order this conversation before anyone sells below value.

Knowledge · Community of heirs & property

Selling a run-down inherited house from the estate

An old house in need of repair need not be done up first in order to be sold. The calm path begins with a sober survey of its condition rather than a gut feeling — and with honesty about what is known. Whoever discloses known defects protects the community of heirs from later claims.

As at: June 2026 · ← back to the guide

The answer first. A house in need of renovation can be sold in its present state too — to people who intend to do it up or develop it themselves anyway. The usual route is then a sale “as inspected” with a liability exclusion for material defects (section 434 BGB). But this exclusion has a firm limit: known defects may not be concealed — no exclusion covers a defect deliberately concealed (section 444 BGB). And the community of heirs can sell the house only if everyone agrees (section 2040 BGB). Condition, honesty and unanimity beat any rushed sale below value.

First the survey, not the gut feeling

With an old house, estimating quickly slides in two wrong directions: either it seems “barely worth anything any more”, or the memory of the family home keeps the price high. Neither helps a sale. The decision only becomes sound with a sober survey of the condition — which defects are visible, which are known, what is merely supposition. The roof, damp in the cellar, old wiring, the state of the fabric: this belongs on the table before any price is discussed. Whoever knows the condition sells more calmly and comes under pressure less often.

This page orders the sale. If your question is whether a renovation is worthwhile — including the energy certificate, the duties under the Building Modernisation Act and possible funding — you will find that separately under Funding, renovation and the GModG. Here we stay with the sale in its present state.

“Bought as seen” — and where the exclusion ends

When selling a used house in need of repair, a liability exclusion is common: “bought as seen”, with no warranty for material defects (section 434 BGB). That is legitimate and sensible — no one should be liable for every defect that later surfaces in an old house. But the exclusion has a clear limit: it gives no protection where the selling community of heirs deliberately conceals a defect known to it. The seller then cannot invoke a liability exclusion (section 444 BGB).

In practice this means: what you know about the house — damp, rot, a leaking roof, contaminated soil — belongs disclosed, not omitted. Open disclosure is no disadvantage. It cuts the ground from under later claims, and it prevents the blanket markdowns with which a buyer prices in every risk as a precaution. Honesty about the condition is here the soberest protection for the heirs.

Selling to renovators — a calm path

A house that needs work has its own market: people and developers who buy in the present state and intend to do it up or develop it themselves. For a community of heirs this can be the calmest path — no rebuild at one’s own risk, no bridging finance, no building site under shared responsibility. The house is sold as it is, at a price that reflects the condition rather than a wishful picture.

What remains important: the community of heirs decides on the sale together; the step requires the consent of all co-heirs (section 2040 BGB). The contract is recorded by a notary. Our task is that you, as a family, first reach a sound decision — and that condition and disclosure are cleanly ordered before anyone sells. Anyone pressing you from outside towards a quick close deserves the same sober look as any letter sent by buyers.

Liability for material defects (Sachmängelhaftung). The seller’s duty to answer for defects in the thing (section 434 BGB). When an old house is sold it is often excluded — but the exclusion never reaches known defects deliberately concealed (section 444 BGB).

Bought as seen (liability exclusion). The agreement to sell the house in its inspected state without warranty for material defects. It covers only what was open or unknown — not a defect the sellers knew and concealed (section 444 BGB).

This article provides orientation and does not replace legal or tax advice. The contract of sale and the liability exclusion are drafted and recorded by a notary or lawyer; tax questions belong with a tax adviser; the value and the condition are assessed by a qualified expert.

Your next step

Funding, renovation and the GModG

Energy certificate, duties and possible funding — if you renovate after all.

Understanding buyer letters

What lies behind the friendly offer by mail.

Free initial consultation · without obligation · reply within two business days

Must we renovate the house before we sell it?: No. A house in need of renovation can be sold in its present state — to people who intend to do it up or develop it themselves anyway. That spares the community of heirs a rebuild and bridging finance. The price then reflects the condition.
Can we exclude liability for defects?: When selling a used house an exclusion of liability for material defects is common — “bought as seen” (section 434 BGB). But the seller cannot invoke it insofar as they have deliberately concealed a known defect (section 444 BGB).
Must we disclose known defects?: Yes. What you know about the house — damp, rot, a leaking roof, contaminated soil — belongs disclosed. Open disclosure protects the heirs from later claims and from the buyer’s blanket markdowns.
Can we sell if not all co-heirs agree?: No. The sale of the house is borne by the community of heirs jointly; it requires the consent of all co-heirs (section 2040 BGB). So the family agreement comes before the market — we order this conversation before anyone sells below value.