12 Sep Tip of the Day – Probates
What is a probate? A probate is a property owned by by a deceased person and is sold by his or her Estate, with an Administrator or Executor signing on behalf of the deceased person with full or limited authority. How a probate sale is handled depends on whether or not the deceased left a will.
Deceased left a will:
In the event the deceased left a will, the property falls under the Independent Testamentary Act, wherein the Court issues a Decree of Distribution of Letters of Testamentary appointing an Administrator or Executor with full authority. A certified copy of either document will be required by the Title Company to close the transaction. In addition, a letter from the Attorney will be required stating the following:
- The heirs have been notified of the pending sale of the property and their required waiting period has elapsed, with no objections being raised by their heirs. Any Federal or State inheritance taxes have been paid in full.
Deceased Left No Will
In the event the deceased left no will, the property will be subject to court confirmation with the court approving and assigning an Executor or Administrator for the Estate of the Deceased. An Order Confirming Sale will be issued by the Court, a certified copy of which is required by the Title Company to close the transaction. During the Court hearing for confirmation, the current purchase price is subject to an over bid. A third party can come in and offer a price higher than what the first Buyer is offering; this person becomes your new Buyer.