When it comes to a probate sale, most people find the process to be intimidating. Besides the complexity, the entire scenario has the potential to cause strain on your family. It is a situation when the owner of the property passes without a will or intestate. And due to the lack of clarity in the absence of a will, there is a general lack of understanding of how the estate property should be sold.
Role of Probate Court
When someone passes away intestate, their property is sold through a special court. The court handles the property and appoints the closest family member as the executor of its sale. Even as the executor you have to go through strictly guided steps to ensure that the sale takes place according to the court’s guidelines.
The Sale Process
The first step in the sale process is to appraise the property. The law requires that such a property should sell for not less than 90% of its appraised value. Once it is appraised, you can list it for sale. This will require hiring the services of an agent so that it can be listed on several listing services.
The terms of such a sale are quite strict and everything depends on the court’s decision. A buyer’s offer should have a deposit of 10% which can be rejected by the seller. Even when the offer gets accepted, the seller doesn’t have any commitment to the offer. This is what makes such sales so much more complicated and doesn’t draw many buyers. Selling a property that is intestate can be difficult and time-consuming and it is best to let professional services handle it.
Notice of Proposed Action
Once the seller has accepted an offer, they are required to submit it to the court and the court should confirm it. A further ‘notice of proposed action’ is sent to all the heirs. The heirs have the option to raise objections within a specific time period.
It is this complex process that makes such a sales so difficult. If you are dealing with such a property, it will be in your best interests to get the help of a professional service to deal with the whole situation and find buyers as quickly as possible.