Is it true when someone inherits real estate, which was the deceased’s primary residence, the mortgage will be wiped out at the time of death and the property title passes free and clear of all liens? I heard if the property was not the deceased’s principal residence, then the heir has to pay the debts.

When you inherit real estate, you receive title “subject to” all existing recorded liens and encumbrances against the property. That means if you inherit a house that has a first mortgage, a home equity loan, a mechanics’ lien and unpaid property taxes, you must pay all those obligations according to their terms or lose the property by foreclosure or forfeiture. Real estate inheritances can be wonderful if there is plenty of equity (the difference between the total amount owed and the fair market value of the property). However, if there is little or no equity in the inherited property, you might want to decline that inheritance. For more details, please consult a local real estate attorney.

In the market for Delray Beach FL real estate? Consult with licensed agent Caesar Parisi. Caesar has assisted hundreds of buyers and sellers, giving sound advice on how to most effectively buy and sell property.

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