Can You Sell a House in a Revocable Trust in Virginia? What You Need to Know

If you’re asking, “Can you sell a house in a revocable trust in Virginia?” chances are you’re facing a tight timeline, uncertainty over title, liability fears, or disputes among family or beneficiaries. You may worry the house is “locked up” in a trust or that selling will trigger unexpected taxes or legal hurdles.

You may have already moved real property into a revocable living trust and now want to liquidate it—but are unsure whether the trustee can act, whether beneficiaries must consent, or whether the transaction must be approved by a court. These concerns are common, and in Northern Virginia and Fairfax County in particular, they often arise in estate planning, wealth transitions, and trust administration.

The short answer is, yes: In many circumstances, a trustee may sell real property held in a revocable trust in Virginia—but the ability to do so depends on the language of the trust, proper titling, statutory powers of trustees, and adherence to fiduciary duties. Below is a detailed guide to help you (or your loved ones) understand how this works under Virginia law, what obstacles may arise, and when you should consult a trust and estate planning attorney at an estate planning law firm in Fairfax.

Understanding the Basics: Revocable Trusts in Virginia

A revocable living trust is a trust that the settlor retains the power to amend or revoke during their lifetime. Under Virginia Code § 64.2-751, unless the terms provide otherwise, a revocable trust may be amended or revoked by the settlor.

In practice, to have legal effect over real property, you must fund the trust. That means retitling assets—including executing a deed to move real property into the name of the trustee of the trust—and then recording that deed in the appropriate county.

If you never changed the title, the trust may not legally “own” the property, and the settlor remains the legal owner with full authority.

Once real property is properly in the trust, it becomes part of the trust’s “assets” and is subject to the powers given to the trustee under the trust document and Virginia statute. Assets in a revocable trust bypass the probate process as part of an estate planning strategy, as opposed to efforts to leave money or property to others in the future through simple wills, which are subject to probate. Trust assets can involve a range of overlapping family and business law concerns. We create trusts and use other estate planning instruments to assist clients, taking steps to protect the interests of their families and benefit their businesses while achieving peace of mind.

Trustee Authority: Legal Power to Sell

Even when a house is properly held by the trust, the ability to sell hinges on whether the trustee has authority under the trust terms and statutory authority under Virginia law.

1. Trust Terms

First, the trust document itself may explicitly grant a power of sale, or require beneficiary consent, or restrict sales under certain conditions. If you are a trustee or beneficiary, carefully review those terms. If the trust is silent, statutory defaults will apply under the Virginia Uniform Trust Code (Title 64.2).

2. Statutory Powers of Trustee

Under § 64.2-778 of the Virginia Code, a trustee has a broad suite of powers, including the power to sell assets of the trust as needed to administer it.

That section states that upon termination—and more generally during administration—a trustee may sell assets to effectuate the purposes of the trust.

Additionally, trustees have a duty of prudent administration and must act in the best interests of beneficiaries (Uniform Trust Code § 64.2-763, 64.2-764, 64.2-766).

A sale of property is one form of “management” of trust assets, so long as it is reasonable, in accordance with the trust’s purpose, and not a conflict of interest, a trustee may proceed.

Because the trust is revocable during the settlor’s life, often the settlor itself is the trustee or retains control over trustee action—so the “sale” is functionally similar to how you’d sell property independent of a trust, but with additional formalities and fiduciary constraints.

Practical Steps and Potential Hurdles in Fairfax / Northern Virginia

Let’s break down what typically must be done in Northern Virginia (including Fairfax County) if you wish to sell a house in a revocable trust, and what pitfalls to watch for. Our estate planning lawyers at PJI Law can guide and assist you through each step or consideration as it pertains to your unique situation.

Title / Deed Considerations

First, confirm that the deed to the house is in the name of the trustee of the trust, not your personal name. If you never changed the title, you may have to revoke/amend the trust or first transfer the property into the trust before attempting to sell.

The trustee must sign the deed of sale and any other conveyance documents. In many Virginia cases, a trustee’s deed (rather than a warranty deed) is used to transfer property from a trust to the purchaser or subsequent owner.

The deed must be recorded in the circuit court land records of the county (e.g., Fairfax County).

Buyer Confidence / Marketability

Some buyers or title insurers may raise questions about a trustee’s authority. To prevent issues, it may help to provide an affidavit of trustee authority or resolution by beneficiaries, or an opinion of counsel if needed.

If your trust is older, its language might not reflect modern statutory language or include enough clarity around sale powers; this can prompt negotiation or delays.

Taxes, Liens, Mortgages

If there is an existing mortgage on the property, the trustee must manage it. Often, the lender’s due-on-sale clause will be triggered by transfer to any new owner—but federal law permits transfers into a revocable trust controlled by the same person without affecting the mortgage.

The trustee must make sure property taxes or assessments are paid before the sale or at settlement.

If there are liens (e.g., mechanic’s liens), those must be cleared or addressed before conveying a clear title.

Fiduciary Duty & Beneficiary Interests

The trustee may not enter into a transaction that benefits them personally or is a conflict of interest, unless the trust allows it or the beneficiaries approve. Section 64.2-764 states that a sale transaction is voidable if there is a conflict of interest not permitted by the trust.

The trustee must act prudently. So if selling is not prudent (e.g., market conditions unfavorable, better alternative investments), beneficiaries might object.

In some cases, beneficiaries (if of majority interest and no dissenters) might consent to waive formal accounting or approve the sale, simplifying the process.

Accounting, Commissions, and Trustee Compensation

If the trust documents do not specify trustee compensation, Virginia Code § 64.2-761 allows a trustee to accept reasonable compensation under the circumstances. For real property sales, any commission or fees charged must likewise be reasonable, and the trustee must keep records and account for them appropriately.

In Fairfax County, the Trustee may be required to file inventories and accountings with the Commissioner of Accounts, unless waived by beneficiaries or trust terms.

When Court Approval May Be Needed

In some circumstances (e.g., ambiguous trust terms or contested beneficiary claims), it may be safer to petition the court for a construction or confirmation of trustee authority before making the sale.

If a beneficiary objects or if there’s uncertainty, a Fairfax circuit court hearing may be advisable to avoid later litigation.

Why This Matters in Northern Virginia

When clients come to PJI Law in Fairfax, they often bring these pressing concerns:

• Timing pressures: They may have a buyer lined up, or need to raise cash promptly (for debts, relocating, or care). Delays over title or trustee authority become costly.
• Family friction: Beneficiaries may contest whether the trustee should sell now or later, or whether the sale terms are fair.
• Title insurer / lender pushback: A buyer’s title company or bank may demand extra assurances (e.g., opinion letters).
• Unclear trust drafting: Older trusts may not explicitly empower a sale, leading to ambiguity.
• Estate tax or capital gains issues: Although Virginia has no state estate tax, federal estate taxes may apply, and capital gains on the sale of a home held in the trust must be considered.
• Creditor exposure: Because assets in a revocable trust remain subject to the settlor’s creditors while alive (Virginia Code § 64.2-747), there may be claims or encumbrances to reckon with.

Because of these interlocking legal, transactional, and relational factors, many people err by proceeding without legal guidance—leading to title claims, beneficiary lawsuits, or voided conveyances. Our trust and estate planning lawyers at PJI Law can help you avoid various pitfalls involving these concerns.

When You Should Consult a Trust Attorney or Estate Attorney in Fairfax

If you are considering selling a home held in a revocable trust (or preparing a trust that may hold real estate in the future), engaging a qualified trust attorney, estate planning attorney, or estate administration attorney can help you avoid missteps. Such counsel can:

• Review the trust instrument and guide you regarding whether it validly grants a power of sale
• Confirm whether the property is properly titled in the trust or if corrective steps are needed
• Negotiate or prepare transaction documents (deeds, affidavits, certificates) acceptable to lenders and title insurers
• Help prepare beneficiary consents or court petitions if needed
• Guide you on tax consequences, timing, and administrative accounting
• Assist with trust administration or litigation if a beneficiary objects

In Northern Virginia, where real estate values, multiple heirs, and complex finances are common, the stakes are higher.

At PJI Law, we focus on high-quality legal services in trust administration, estate planning, wills, probate, and related matters. As a Virginia firm familiar with Fairfax County and Northern Virginia, we routinely help clients plan strategically with real property held in trusts, resolving these legal issues for families.

What You Need To Remember Regarding Selling a House in a Revocable Trust in Virginia

An experienced Virginia trusts and estate planning attorney can guide you through the processes and help you avoid the pitfalls associated with selling a house in a revocable living trust.

In summary:

1. You generally can sell a house in a revocable trust in Virginia, but only if the trust holds title and the trustee has authority under the trust and statute.
2. Review the trust document carefully; if it lacks a sale clause or is ambiguous, beneficiary consent or court involvement may be needed.
3. Make sure the property is properly titled in the trustee’s name via a recorded deed.
4. The trustee owes fiduciary duties and must act prudently, loyally, and in the best interest of beneficiaries.
5. Address liens, existing mortgages, taxes, and buyer / title insurer demands.
6. Keep careful accounting, apply a reasonable commission, and follow Virginia rules for trust compensation and reporting.
7. When in doubt or if the situation is complex, retain a trust and estate attorney to review your case.

Schedule Your Consultation with PJI Law Today

You need to avoid the pitfalls that you may be risking if you sell a house that is in a revocable trust. A Fairfax trust attorney can guide you to avoid costly errors or mistakes.

Have you been typing “trust attorneys,” “estate planning attorney near me,” or “trust and estate planning attorney” into your search bar?

If you or a loved one in Fairfax, Northern Virginia, or elsewhere in Virginia are seeking to sell a house in a revocable trust, or if you hold property in trust and wish to transact safely and confidently, we can assist you. An estate planning attorney at PJI Law can help you protect your interests, honor your wishes, and navigate the complexities of trust administration and real estate transactions.

Contact us today at (703) 865-6100(703) 865-6100 or complete our online form to schedule a consultation.

At PJI Law, you’ll receive personalized service and attention!

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The information in this blog post (“post”) is provided for general informational purposes only and may not reflect the current law in your jurisdiction. No information in this post should be construed as legal advice from the individual author or the law firm, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting based on any information included in or accessible through this post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country, or other appropriate licensing jurisdiction.

PJI Law, PLC
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Fairfax, VA 22030
(703) 865-6100(703) 865-6100
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