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Purchase contract

Buying Property from an Estate: Disposal, Devolution and Court Approval

What to watch for when buying a property from an estate: the power of disposal, the role of the formal devolution and the sequence of registrations.

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BRANDAUER Rechtsanwälte

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Every matter is handled by a coordinated team of lawyers, legal staff and specialists. In property purchase matters we look at the contract, land register, escrow and tax consequences together.

26 June 2026 · Mag. Bernhard Brandauer, Rechtsanwalt

Anyone buying a property from an estate, that is from the inheritance of a deceased person, faces particular questions. Who may sell at all? Are the probate proceedings already concluded? And how is it ensured that the buyer really becomes owner in the end?

This post explains the role of the formal devolution, when the estate itself sells and when the heir, why the probate court may have to approve and what to watch for in the sequence of registrations. It does not replace a review of the individual case.

From a lawyer’s perspective buying from an estate is no routine case. The power of disposal and the stage of the proceedings decide its success. Anyone who misjudges the sequence and the approvals here risks being bound to a contract that cannot be registered.

Classify the acquisition

Securing a purchase from an estate correctly

Answer one or two questions on the stage of the estate and the power of disposal. You will receive a first classification of what to watch for.

Already know you want to get in touch? Go straight to the enquiry form.

01 Question 1

At what stage is the estate?

Title only passes to the heirs with the formal devolution. Before that the estate itself holds the rights and is represented by the entitled heirs.

All paths at a glance

Overview of all answers.

01

With several heirs all must dispose jointly.

If the property belongs jointly to several heirs, they can only sell by agreement. All co-heirs must consent to the sale and sign the contract or appoint a representative. If the consent of one co-heir is missing, title cannot be effectively transferred.

Before signing, have it checked whether all entitled persons are covered and whether the proceedings are already concluded. How shares of several owners take effect is explored in the post on buying an undivided co-ownership share.

02

Without a clear power of disposal you should not sign.

As long as it is unclear who may dispose of the property, the basis for an effective purchase is missing. Before devolution the estate disposes through the entitled heirs, afterwards the heir to whom the estate has devolved. Have the power of disposal and the stage of the proceedings clarified before any binding step.

A purchase from the wrong party does not lead to title and the purchase price would have flowed without a secured counter performance. Booking an initial consultation (72 euro) helps with the classification.

03

If the heir is registered as owner, the disposal is secured.

If the selling heir is already registered as owner in the land register after devolution, the starting position is clear. They can sell like any owner. Even so, watch for any encumbrances, compulsory share claims or conditions from the proceedings, which may be apparent in the land register or the documents.

Check the land register status and the estate documents carefully. How to classify entries is shown in the post on reading the land register extract.

04

If the right rests only on the order, the sequence is important.

If the heir is not yet registered as owner and relies only on the devolution order, the sequence of registrations is decisive. The heir must first register their title or the registration must be cleanly dealt with in the course of the purchase, so that you acquire effectively.

Have the contract drafted so that the registrations take place in the right order and the purchase price flows via escrow only after a secured registration. How title enters the land register is shown in the post on the declaration of consent and registration.

05

With representation and approval the handling is secured.

If the estate sells before devolution, the heirs who have declared acceptance must dispose and, as a rule, the probate court must approve. If both are governed and provided for as a requirement of the handling, the acquisition is secured. The approval belongs in the contract as a condition precedent.

Align the escrow handling with it, so that the purchase price flows only once the approval is in place and registration is secured. That way the buyer does not pay without a secured counter performance.

06

Without clarified representation and approval the acquisition is at risk.

If before devolution it is not clarified who disposes for the estate and whether the court approves, the acquisition may fail. A contract without these foundations cannot be registered and the purchase price would have flowed without a secured counter performance. Have representation and approval clarified before you bind yourself.

Because the requirements depend on the individual case, an early review is advisable. Booking an initial consultation (72 euro) clarifies the route via the probate proceedings.

Devolution and the power of disposal

On a person’s death their assets do not pass to the heirs at once. They first form the estate, a separate legal entity represented by the heirs who have declared acceptance. Only with the formal devolution, the order of the probate court, does title pass to the heirs. These principles follow the rules of the ABGB on the estate.

For the purchase this means: before devolution it is not the heir who sells but the estate, represented by the entitled heirs. As a rule the approval of the probate court is needed for such a disposal. After devolution the heir sells as the new owner.

Who is entitled to dispose in the specific case should be clarified before any binding step. A first orientation on the contract review is given by our purchase contract risk check.

Land register, sequence and compulsory share

Even after devolution the heir is not automatically listed as owner in the land register. Registration happens separately. As long as the heir is not registered, their right rests on the devolution order. In this case the sequence of registrations is important so that the buyer acquires effectively.

In addition, compulsory share claims, legacies or conditions from the proceedings can play a role. Such claims are directed at the estate or the heirs, but they should be borne in mind in the drafting so that no surprises arise later. A look at the estate documents is therefore advisable.

It makes sense to align the heir’s registration and the transfer to the buyer cleanly in the course of the purchase. How title enters the land register is shown in the post on the declaration of consent and registration.

The key points

What to watch for when buying from an estate

These points decide whether the acquisition is effective and can be registered smoothly.

Points around buying a property from an estate with recommended drafting and possible risk
Point Recommended Possible risk
Disposal Entitlement clarified Seller is clearly entitled to dispose A purchase from an unentitled party fails
Stage Status known Devolution and stage of proceedings checked An unclear stage causes delay
Approval Planned for Court approval as a condition A disposal without approval is ineffective
Sequence Aligned Registrations cleanly aligned A wrong sequence endangers the acquisition
Payment Secured via escrow Price only after a secured registration Payment before a secured registration

The principles on the estate and devolution follow the ABGB. Which steps and approvals are needed in detail depends on the individual case and the stage of the proceedings.

Caution when buying from an inheritance: Whoever sells must be entitled to dispose, and before devolution an approval of the probate court may be needed. Clarify this before you bind yourself and pay. Booking an initial consultation (72 euro) can quickly provide clarity here.

Drafting in the purchase contract

The purchase contract should reflect the stage of the proceedings and provide for the necessary requirements as a condition precedent. If a court approval is required, it belongs in the contract, tied to registration. That way neither side remains bound to a contract that cannot be registered for lack of approval.

With several heirs all must consent to the sale and sign or be effectively represented. If the consent of one co-heir is missing, title cannot effectively pass. The escrow handling should be drafted so that the purchase price flows only once all requirements are met and the registrations are secured.

Because buying from an estate raises many questions, support from a firm is sensible. Which points should be clarified before signing is explored in the post on reviewing the property purchase contract before signing.

FAQ

Buying property from an estate.

Who may sell a property from an inheritance? +

Before devolution the estate sells, represented by the heirs who have declared acceptance, as a rule with the approval of the probate court. After devolution the heir sells as the new owner. Who is entitled to dispose in the specific case should be clarified before signing.

Do I need an approval from the court? +

If the estate disposes of the property before devolution, the approval of the probate court is usually needed. It belongs in the contract as a condition precedent, tied to registration. Whether and in what form it is required depends on the individual case.

What applies with several heirs? +

If the property belongs jointly to several heirs, they can only sell by agreement. All co-heirs must consent and sign or be effectively represented. If the consent of one co-heir is missing, title cannot effectively pass.

Topics
EstateDevolutionCommunity of heirsLand registerPurchase contract

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