Selling an Inherited House in Allentown, PA

Inherited a house in Allentown? Start here

When a parent, spouse or relative dies and leaves a house in Allentown, the family usually faces the same questions: who is allowed to sell it, what taxes are owed, what to do about the mortgage and the property taxes in the meantime, and whether to fix it up, rent it or sell it as-is. Pennsylvania handles these questions a little differently from most states. It charges an inheritance tax on what heirs receive, and the City of Allentown requires a presale inspection before almost any house changes hands.

This guide walks through each step for a house in the City of Allentown or elsewhere in Lehigh County, using the Pennsylvania statutes and the City’s, the County’s and the Department of Revenue’s own published information, checked on November 8, 2026. It is general information, not legal advice. An estate attorney can tell you how the rules apply to your family.

Who can sell the house

A house titled in the name of the person who died, alone, can’t be sold until someone has legal authority to sign the deed. In Pennsylvania that person is the personal representative: an executor named in the will, or an administrator when there is no will. The estate is opened in the county where the person lived, so for an Allentown home that is the Lehigh County Register of Wills, Lehigh County Courthouse, Room 122, 455 West Hamilton Street, Allentown, PA 18101 (610-782-3170).

Situation	Who signs	What the law says
There is a will naming an executor	The executor, after the Register grants letters testamentary	Letters testamentary go to the executor named in the will (20 Pa.C.S. § 3155(a)). Unless the will says otherwise, the personal representative may sell, at public or private sale, real estate that is not specifically left to someone (§ 3351).
The will leaves the house to a specific person	The executor, with that person joining the sale	Specifically devised real estate can be sold “with the joinder of the specific devisee” (§ 3351).
The will takes away the power to sell, or a judicial sale is advisable	The personal representative, with a court order	The Orphans’ Court Division can authorize the sale (§ 3353).
There is no will	An administrator, after the Register grants letters of administration	Except for good cause, the Register grants letters in this order: those entitled to the residuary estate under a will, the surviving spouse, then heirs the Register judges will best administer the estate, with preference by share size, then principal creditors and other fit persons (§ 3155(b)).
The house was owned jointly with a right of survivorship	Usually the surviving owner	Survivorship property generally passes outside the estate. Property owned jointly by spouses is exempt from Pennsylvania inheritance tax (PA Department of Revenue).

Two details catch families off guard. First, if a relative is living in the house with the consent of the person who died, the personal representative does not automatically take possession of it, but the law says that does not affect the power to sell it (§ 3311(a)). Second, if the Register or the court required the personal representative to post a bond, the sale proceeds can’t be paid to the personal representative until the court rules on additional security (§ 3351).

Is there a shortcut for small estates?

Pennsylvania lets the Orphans’ Court distribute a small estate without a full administration when the person’s property is worth no more than $50,000. That limit leaves out real estate entirely, and the procedure is used to distribute personal property such as bank accounts and cars (20 Pa.C.S. § 3102). If the house was in the decedent’s name alone, plan on opening an estate, and ask the title company early what it will need to insure the sale.

What happens after letters are granted

• Advertise the estate. Right after letters are granted, the personal representative must publish notice once a week for three successive weeks in a local newspaper and in the court’s designated legal periodical, asking creditors to come forward (20 Pa.C.S. § 3162).
• Notify the family. Within three months after letters are granted, the personal representative or the estate’s attorney must send a written notice of estate administration to the will’s beneficiaries, the decedent’s spouse and children, and every intestate heir when there is no will, then file a certification of notice with the Register within ten days (Pa. O.C. Rule 10.5).
• Mind the claims window. A personal representative who distributes estate property at their own risk is protected from creditors whose claims weren’t known within one year after the first complete advertisement of the letters (§ 3532(a)). For real estate conveyed to heirs in distribution, a creditor must file a written notice of claim with the clerk within one year after the death (§ 3532(b)(2)). These rules mostly affect when money can safely go out to heirs, which is one reason many estates sell the house and hold the proceeds until bills are settled.
• File the inventory and the inheritance tax return (below), and keep the house insured, secured and current on taxes, water and sewer while the estate is open.

Who inherits when there is no will

Pennsylvania’s intestacy law decides who gets the house when there is no will. A surviving spouse takes everything if the decedent left no children (or other descendants) and no parent. If there are children who are all also the spouse’s children, or no children but a surviving parent, the spouse takes the first $30,000 plus half of the rest. If any child is not the spouse’s, the spouse takes half (20 Pa.C.S. § 2102). Whatever the spouse doesn’t take goes, in order, to the decedent’s descendants, then parents, then brothers and sisters and their descendants, then grandparents and their descendants, then aunts, uncles and their children and grandchildren (§ 2103).

When several heirs end up sharing a house, every one of them usually has to agree to a sale or sign off on it through the estate. If one heir wants to keep the house and the others want cash, a buyout or a sale that closes on a date everyone can live with is often the cleanest answer.

Pennsylvania inheritance tax on the house

Pennsylvania is one of the few states with an inheritance tax. It applies to the value of what each person receives, including a house, whether or not the house is sold. The rate depends on who inherits (PA Department of Revenue):

Who inherits	Rate
Surviving spouse; a parent inheriting from a child aged 21 or younger; a child aged 21 or younger inheriting from a parent	0%
Children, grandchildren and other lineal descendants, parents and grandparents	4.5%
Brothers and sisters (including half-siblings)	12%
Everyone else, such as nieces, nephews, cousins, in-laws and friends	15%

• When it’s due. The tax is due at death and becomes delinquent nine months after the date of death. If it is paid within three months of the death, a 5% discount applies.
• Where to pay. For a Pennsylvania resident, payments go to the Register of Wills of the county where the person lived, which for an Allentown home is the Lehigh County Register of Wills.
• The return. The inheritance tax return (REV-1500) is due within nine months of the death. An extension to file can be requested before it is due, but it does not extend the time to pay. The Department of Revenue’s instructions list a penalty for failing to file of 25% of the tax ultimately due or $1,000, whichever is less.

Because the house is valued as of the date of death, families often want an appraisal or a written offer early. A sale that closes soon after the death can also help show what the house was worth. For federal income tax, inherited property generally takes a basis equal to its fair market value on the date of death (IRS Publication 551), so a quick sale near that value often produces little or no taxable gain. Ask a tax professional about your numbers.

Allentown’s presale inspection

The City of Allentown requires an inspection whenever a property is offered for sale or title transfer, voluntary or not. The City’s written procedure lists agent listings, for-sale-by-owner, wholesale, auction, tax sale and sheriff sale, so an estate selling to a cash buyer is covered too. Here is how it works, per the City’s Pre-Sales Inspection Procedure (revised May 11, 2026):

Step	What the City requires
Request it	Within five business days of offering the property for sale, the seller or the seller’s agent must request and pay for the inspection, online through the City’s CSS portal, by mail, or in person at Building Standards and Safety on the 3rd floor of City Hall.
Fee	Residential: $100 for up to three units plus $25 for each additional unit, non-refundable. It includes one reinspection within 30 days; a second reinspection is $75 per unit, and later ones $150 per unit.
Report	The inspector lists code, permit and zoning violations. The report is valid for one year.
If the house passes	The City issues a Certificate of Compliance to the seller.
If violations are found	The seller fixes them before the transfer, or the City must receive a notarized Acceptance Form at least three days before the transfer in which the buyer acknowledges the report and agrees to correct the violations by the next reinspection date. The seller must give the buyer a copy of the report.
If it is skipped	The City says no exceptions are made, and both parties are subject to enforcement and fees.

For an inherited house that needs work, the Acceptance Form route is what lets an estate sell as-is without making the repairs first. Ask any buyer, including us, to confirm in writing who handles the inspection items. Questions go to the Bureau of Building Standards and Safety at 610-437-7694.

If the house is a rental: Allentown requires rental units to be registered and inspected, with an annual fee of $75 per unit. The City’s buyer form says a rental registration does not automatically transfer and a rental license can’t be transferred, so the buyer has to apply for its own. Gather the leases, rent records and security deposit records before you sell.

Back taxes and the Lehigh County tax sale

Property taxes keep coming due while an estate is open, and an unpaid bill can turn into a tax sale. Delinquent real estate taxes in Lehigh County are handled by the Lehigh County Tax Claim Bureau, with Elite Revenue Solutions as its agent, under Pennsylvania’s Real Estate Tax Sale Law:

• The upset sale is held once a year, in September, and is the first sale at which a property can be sold. Properties with real estate taxes delinquent for two years are eligible, and the 2026 sale covered unpaid 2024 and prior taxes.
• An owner can redeem by paying the delinquent taxes, interest, penalties and costs before the day of the sale. According to the 2026 sale notice, there is no right of redemption on the day of or after the auction.
• The Bureau may, at its option, stay a sale if the owner signs an installment agreement before the sale date, but it can’t enter a new one within three years of a default on an earlier agreement.
• Interest accrues at 9% a year. If a property sells for more than what is owed, the record owner is entitled to the excess after taxes, costs and liens.

If the house you inherited is behind, call the Tax Claim Bureau at 610-782-3119 for a payoff figure. In a sale, delinquent taxes are normally paid from the proceeds at closing. Our guide to selling a house with back taxes covers the general options.

If there is still a mortgage

The mortgage does not go away when the owner dies, and the payments still need to be made while the estate is settled. Federal law generally stops a lender from calling a home loan due just because a 1-4 family house passed to a relative at death (12 U.S.C. § 1701j-3(d)), which gives the family time to decide what to do. If payments have fallen behind, see our guides on selling when you’re behind on payments and selling a house facing foreclosure.

Allentown issues that come up with inherited houses

• Older rowhomes and twins. Much of the city’s housing was built in the late 1800s and early 1900s. Roof and masonry work, old wiring and plumbing, and lead-safe repairs are common, and the presale inspection will list what the City wants corrected.
• A house full of belongings. Clearing out a lifetime of possessions takes time. When you sell to us, you can take what you want and leave the rest.
• Heirs who live out of town. Much of an estate sale can be handled by phone, email and mail, with signing arranged through the title company or closing attorney.
• A vacant house over the winter. Keep the heat on, the pipes protected and the insurance active, and tell the insurer the house is vacant. See our vacant house guide.
• Tenants in place. The estate steps into the landlord’s shoes. See our guide to selling with tenants.

Your options for an inherited Allentown house

Option	Best when	Watch out for
Keep it or move in	An heir wants the house and can buy out the others or cover the costs.	Inheritance tax, property taxes, insurance and any mortgage still need to be paid; co-heirs should agree in writing.
Rent it out	The house is in good shape and someone can manage it.	The estate or heirs become a landlord, with repairs, tenants and the City’s rental registration, licensing and inspections.
List it with an agent	The house is updated, the estate has time and money for repairs and showings, and all heirs agree.	Commissions, repairs a buyer’s lender may require, the presale inspection items, and months of carrying costs.
Sell as-is for cash	The house needs work, has tenants or belongings, taxes are behind, or heirs are out of town and want a certain closing date.	A cash offer is usually below full retail value. Compare it with what the estate would net after repairs, commissions and carrying costs.

How a sale to Trusty House Buyers works with an estate

• Talk to us early. You don’t need letters in hand to get a number. Tell us about the house, where the estate stands and any tax, mortgage or code problems. Call or text (912) 978-4404.
• Get a written cash offer. We buy as-is: no repairs, no clean-out, no showings and no agent commissions. Read the offer to see exactly who pays which closing costs and the realty transfer tax.
• Contract with the right signer. We sign with the executor or administrator once the Register has granted letters, and we work with the estate’s attorney on any court approval the sale needs.
• Close on the estate’s timeline. A title company or closing attorney pays off the mortgage, delinquent taxes and other liens from the sale. The rest goes to the estate, which pays the inheritance tax and distributes what is left.

What to gather

• Certified death certificates (the Register, the title company and others each want them)
• The original will, if there is one, and the letters testamentary or letters of administration
• The deed, recent property tax bills and any Tax Claim Bureau notices
• The City presale inspection report or Certificate of Compliance, once you have it
• The latest mortgage statement and any home equity loan or reverse mortgage paperwork
• Water, sewer and utility account numbers, and the homeowner’s insurance policy
• Leases, rent records, security deposit records and the rental license, if the house is rented
• Names and contact details for every heir or beneficiary

Related guides

Sources: 20 Pa.C.S. §§ 2102, 2103, 3102, 3155, 3162, 3311, 3351, 3353 and 3532 (Pennsylvania General Assembly, legis.state.pa.us); Pa. Orphans’ Court Rule 10.5 (231 Pa. Code r. 10.5); PA Department of Revenue inheritance tax and tax rates pages and REV-1500 instructions; Lehigh County Register of Wills (lehighcounty.org); City of Allentown Pre-Sales Inspection Procedure, rental registration page and buyer information form, and Ordinance 16179 amending City Code § 570-13; Lehigh County Tax Claim Bureau upset sale page and 2026 Upset Sale Notice; 12 U.S.C. § 1701j-3; IRS Publication 551. Checked November 8, 2026. This is general information, not legal advice. Talk with a Pennsylvania estate attorney about your situation.