Can You Sell a Cemetery Plot Back to the Cemetery?

Many individuals find themselves in possession of a cemetery plot they no longer need, leading to questions about the possibility of selling it. Life circumstances, such as relocation, family plan changes, or opting for cremation, often prompt this inquiry. While the initial purchase of a cemetery plot is a long-term decision, the need to divest this asset can arise unexpectedly. Understanding the mechanisms for selling a cemetery plot is important for navigating this process.

Understanding Cemetery Plot Ownership

When a cemetery plot is acquired, the transaction conveys “interment rights” or “burial rights.” The cemetery corporation retains ownership of the underlying land. This means the plot holder has the exclusive right to inter human remains within a designated space, subject to cemetery rules.

A deed or certificate of interment rights establishes these rights. These documents specify the plot’s location, the number of interments permitted, and any conditions tied to its use. Cemeteries have bylaws that govern the transferability of these rights. These bylaws cover who can be buried, if it can be sold to a third party, and transfer fees.

Cemetery regulations stipulate that transfers of interment rights must be approved and recorded by the cemetery administration. This ensures adherence to cemetery standards. Some cemeteries may impose restrictions, such as a right of first refusal, allowing them to repurchase the plot before it’s offered to others. Understanding these terms, detailed in the original purchase contract, is important when considering a sale.

Options for Reselling a Cemetery Plot

When considering selling a cemetery plot, two avenues are available to the holder of interment rights. One option involves selling the plot directly back to the cemetery from which it was originally purchased. This is often the most straightforward path, as the cemetery holds the records and understands its policies.

Alternatively, the plot can be sold to a private individual. This approach may offer greater flexibility in pricing and negotiation, but it also involves more seller responsibility to find a buyer and manage the transaction. Both methods require adherence to cemetery regulations. Each option presents distinct advantages and considerations.

Selling Back to the Cemetery

Selling a cemetery plot directly back to the cemetery begins with contacting their administrative office to inquire about their buy-back policy. Not all cemeteries are obligated to repurchase plots, and their willingness to do so depends on demand and internal policies. If a cemetery does offer to buy back a plot, they will require proof of ownership, such as the original deed or certificate.

The cemetery’s offer price may be less than the current market value or original purchase price. Some cemeteries may repurchase plots at a reduced rate or only if a waiting list exists. They might offer the original purchase price plus interest, or a percentage of the current selling price. Once an agreement is reached, the process involves signing documentation with the cemetery to transfer the rights.

This ensures the cemetery’s records are updated and the seller’s rights are relinquished. Any applicable fees for the transfer, if not covered by the cemetery as part of the buy-back, would be deducted from the payout. Payment is then issued directly from the cemetery to the seller. While this method may not yield the highest financial return, it offers a secure and streamlined transaction due to the cemetery’s direct involvement.

Selling to a Private Party

Selling a cemetery plot to a private party involves several steps. Buyers can be found through online marketplaces, classified websites, or specialized cemetery brokers. Brokers can facilitate the sale, but their services involve a commission, usually 5% to 15% of the sale price.

Before listing, review the original purchase contract and contact the cemetery to confirm their rules regarding private transfers. Cemeteries require approval for private sales and may charge a transfer fee, typically $100 to $350. The seller must possess the original deed or certificate, as it proves ownership and facilitates transfer. If the original document is lost, the cemetery may require a signed affidavit.

Once a buyer is secured and a price negotiated, a transfer agreement or bill of sale should be drafted. This document states the terms of sale, including price and transfer fee responsibility. The final step involves transferring the rights through the cemetery’s administration. Both seller and buyer sign paperwork, such as a quitclaim form, at the cemetery office to finalize the transfer. Payment is handled directly between private parties; the cemetery’s role is limited to approving and recording the transfer.

Tax Implications of Selling a Cemetery Plot

The sale of a cemetery plot is considered the disposition of a capital asset for federal income tax purposes. Any profit realized from the sale, calculated as the difference between selling price and adjusted cost basis, may be subject to capital gains tax. The cost basis is the original purchase price, increased by capital improvements, not maintenance fees. If inherited, the basis is its fair market value on the date of death.

This gain must be reported to the IRS on Form 8949 and Schedule D of Form 1040. The tax rate depends on the holding period. Gains on plots owned over one year are long-term capital gains, taxed at preferential rates; those held one year or less are short-term and taxed at ordinary income rates. A capital loss from selling a personal-use cemetery plot for less than its basis is not deductible.