Inheriting a house is rarely a clean transaction. Most people who land here are figuring out probate, dealing with siblings, or trying to decide whether to keep, rent, or sell a property they didn't choose. This guide walks through what Colorado probate actually looks like, the three options you really have, and where each one tends to make sense.
What probate is, briefly
Probate is the legal process of settling a deceased person's estate. The court confirms the will (or appoints a personal representative if there's no will), inventories assets, pays debts, and distributes what's left to heirs. In Colorado, probate is governed by the Colorado Probate Code (Colorado Revised Statutes Title 15).
Most Colorado estates go through informal probate, a streamlined process where the court has minimal involvement and the personal representative handles most of the work. Contested estates or larger ones may go through formal probate, which is slower and more expensive.
Three common scenarios
Whether the inherited house has to go through probate at all depends on how it was titled.
1. The property is in probate
If the deceased owned the property in their own name without a beneficiary deed or joint tenancy, the house is part of the probate estate. The personal representative (executor) controls the sale, and the court typically must approve sales to third parties. The estate's bank account holds the proceeds until distribution.
2. The property transferred outside probate via a beneficiary deed
Colorado is one of the states that allows a Beneficiary Deed — a recorded deed that names a beneficiary to receive the property automatically on the owner's death, with no probate. This is authorized by Colorado Revised Statutes § 15-15-401. If the deceased recorded a beneficiary deed naming you, the property is yours as soon as you record an affidavit of death and a copy of the death certificate with the county clerk. You can sell whenever you're ready.
3. Joint tenancy with right of survivorship
If the property was titled as "joint tenants with right of survivorship," the surviving co-owner takes the property automatically by operation of law. No probate. The surviving owner records an affidavit of death and the death certificate, and the title is in their name alone going forward.
Your three main options
However the property reaches you, you ultimately have three choices.
Option 1: Sell to a cash buyer
The fastest path. A direct cash buyer like EZ Investments makes an offer based on current condition, you accept or counter, we close at a Colorado title company — typically in 2 to 3 weeks. No repairs. No clean-out. No commissions. No financing contingencies. We handle title coordination directly with the personal representative if the estate is still open.
This is usually the right call when the heirs want to settle quickly, the property needs work, or distance / siblings make a traditional listing impractical. It's not always the highest gross price — it's the highest net price after subtracting commissions, repairs, holding costs, and time.
Option 2: List with a Colorado-licensed real estate agent
Best fit when the house is in retail-ready condition, the heirs aren't in a rush, and the family is comfortable carrying property taxes, utilities, insurance, and maintenance for the months it takes to list, market, negotiate, and close. Expect to pay 5–6% in commissions plus closing costs, and to absorb whatever the buyer's inspection turns up.
Option 3: Keep and rent
If the property cash-flows, you have time to manage a rental, and you're prepared to be a landlord, keeping it can be the right play long-term. Colorado landlords have specific obligations, including the Warranty of Habitability (Colorado Revised Statutes § 38-12-503), which requires landlords to maintain rental properties in habitable condition with working heat, plumbing, electricity, and a sound roof, among other things. Property management runs 8–12% of monthly rent if you don't want to handle tenants directly.
Timeline considerations
Informal Colorado probate typically runs 6 to 12 months from filing to closure. Selling the property during probate is often faster than waiting for closure — the personal representative can sell with court approval, and the proceeds go into the estate account for later distribution.
You don't always have to wait for probate to close
If the personal representative has authority to sell (granted by the court at appointment, or by petition during probate), the property can sell while the estate is still open. The estate's bank account holds the funds until final distribution. Most cash buyers, including EZ Investments, are comfortable closing in this configuration.
Costs to expect
- Court filing fees. Colorado district court filing fees for probate are set by statute; current schedules are published by the Colorado Judicial Branch.
- Personal representative compensation. Reasonable compensation is allowed under CRS § 15-12-719, scaled to the work involved.
- Property taxes during probate. Property taxes don't pause for probate. Colorado tax bills come from the county treasurer; failure to pay can trigger a tax lien.
- Insurance and maintenance. Vacant property insurance is more expensive than occupied. Plan for utilities, lawn care, snow removal, and basic upkeep until the property is closed or rented.
- Capital gains exposure. Stepped-up basis under Internal Revenue Code § 1014 usually limits gains, but depreciation if it's been a rental, or appreciation post-inheritance, can create a tax bill. Consult a Colorado tax professional.
What EZ Investments does for inheritors
We work with personal representatives and beneficiaries directly. The process looks like this:
- You tell us about the property — address, condition, whether the estate is still open. We respond within 24 hours.
- We make a direct cash offer based on the property's current condition. We don't ask you to clean it out, fix anything, or stage it.
- If the offer works, we open title at First Integrity Title, our Colorado closing partner. We coordinate with the estate's attorney if probate is still open.
- We close on a date that fits the estate's timeline. Cash gets wired to the estate or the heirs at closing.
We've worked with families dealing with out-of-state probate, sibling disagreements, hoarder situations, properties with deferred maintenance, and just plain "we don't want to deal with this." Every case is different. The first conversation costs nothing.
Frequently asked questions
Do I have to pay capital gains tax on an inherited house in Colorado?
When you inherit a property, federal tax law gives you a stepped-up basis equal to the property's fair market value on the date of death (Internal Revenue Code Section 1014). If you sell soon after, capital gains are usually small or zero. If you hold and the property appreciates, you'll owe gains on the increase from the stepped-up basis. Talk to a Colorado CPA before you sell.
Can I sell an inherited house in Colorado before probate is final?
Sometimes. If the property transferred outside probate (beneficiary deed, joint tenancy with right of survivorship, or held in a trust), you can usually sell right away. If it's in probate, the executor or personal representative can typically sell with court approval. The exact path depends on the case — your probate attorney can confirm.
What if my siblings disagree about selling the inherited property?
If co-heirs can't agree, any one of them can file a partition action in district court under Colorado Revised Statutes Section 38-28-101 et seq. The court can order the property sold and the proceeds divided. It's slow and expensive, so most families try mediation first.
Does the house need to pass inspections or repairs before I sell?
If you list with an agent, buyers and lenders will usually require inspection-driven repairs. If you sell to a cash buyer like EZ Investments, no — we buy as-is, in any condition. You don't have to clean it out, fix it up, or even visit.
How long does Colorado probate take?
Informal probate in Colorado typically runs 6 to 12 months from filing to estate closure (Colorado Revised Statutes Title 15, Article 12). Contested cases or formal probate can take longer. The property can often be sold during probate with the court's approval — you don't always have to wait for closure.
Related reading
- Behind on Your Mortgage in Colorado? Options Before Foreclosure
- How to Evaluate an Investment Property in Colorado
- How EZ Investments works for sellers
- About EZ Investments