This article provides crucial insights that probe into whether an executor can sell a house during probate.
It outlines key aspects of a probate property sale, shares common obstacles, and imparts information to help you successfully navigate both.
It’s a brief and resourceful read. Let’s dive in.
Can a House Be Sold While in Probate?
The law allows an executor to sell a house during probate proceedings. There’s even a structured procedure for doing this (more on that later), though it varies by state.
This type of sale is fairly common and often necessary, depending on the situation.
For example, the estate may need to offload the property to address debts, or selling is a more feasible solution than shared ownership of the house.
So, when can you sell a house in probate? Generally, for a sale to proceed, there needs to be:
- Court authorization: Probate court approval is typically required to sell, but not always.
- Benefit to the estate: The court is apt to permit the sale if it supports more straightforward and effective management of the estate’s assets.
What if all beneficiaries don’t agree to the sale? You may have a sibling living in deceased parents house and refusing to sell it.
Usually, not everyone has to consent to sell the property. Therefore, if you inherited a house with other heirs, some of whom object, it may delay but won’t necessarily stop the sale.
Generally, an executor of a will can sell property without all beneficiaries approving if they act in the estate’s best interest.
That sometimes requires converting a house into cash or buying siblings out of the inherited house. Here’s how to refinance an inherited property to buy out heirs.
Another case when you’ll need one more authorization is when the deceased parents’ home is in foreclosure, and the bank is trying to repossess it.
When a House Can’t Be Sold During Probate?
Even though heir property can be sold while in probate in most cases, challenges often arise and can delay, complicate, or prevent the sale.
Here are five common issues and practical solutions.
Contentious Beneficiaries
A dispute can hinder or stop the sale, especially if it goes to court. A typical conflict would be when heirs have inherited a house that needs work and can’t agree on repairs and the sale.
Solution: Consult with a probate attorney for guidance on rights and resolving issues. Other options include mediation, buying out beneficiaries, or getting court approval to sell.
Liens and Unpaid Debt
Resolving liens and outstanding debt can prolong the sale. Creditor claims against the estate can also create a legal challenge that further complicates the process.
Solution: Identify the issues early so you can address them promptly. Work with creditors to negotiate a settlement or a payoff from sale proceeds.
Court Delays
You can only sell a house with a grant of probate from the court. Obtaining this document can take time and delay the start of the sale.
The court’s availability for handling filings and hearings also affects how quickly the sale proceeds.
Solution: Work with an experienced probate attorney to help manage the process. Also, file documents as soon as possible and ensure they are accurate and well-prepared.
Property Condition
Getting a house in poor condition market-ready can take substantial time, depending on the extent of needed repairs.
Solution: Selling an inherited house as is can speed up the process, although it may result in a reduced sale price.
Will Instructions
If the testator’s will explicitly prohibits selling the house, it can block the sale. Conditions for selling can also make the process more complex and extend the timeline.
Solution: Justify why the house needs to be sold and seek court approval. If the will allows changes in certain cases, check if you can legally amend it.
How to Sell a House During Probate?
When you’re selling your deceased parents’ house while in probate, the transaction closes before the proceedings are done. Therefore, the sale must follow established procedure to ensure assets are properly distributed.
So, in terms of protocols, what happens when you sell a house you inherited while the estate is still being managed through probate?
Generally, a probate sale involves legal steps and court oversight in addition to the real estate sales transaction.
Here is a brief overview of how to sell an inherited house within that framework.
It begins with a court appointment. Specifically, the probate court appoints an executor or administrator who oversees the sale.
Whether you are named as executor in the will or qualify to manage the estate, it’s up to you to request the applicable appointment.
As the personal representative, you must perform multiple actions to manage the sale. Here’s what you are tasked to do:
- Seek necessary court permissions and approvals.
- Assess the property’s condition and get it ready for sale.
- Put the property on the market (an agent isn’t always required).
- Work through and close the real estate transaction.
- Handle disbursements and reporting for the court-confirmed sale.
For more information and specific steps, please refer to our comprehensive guide for selling a house after probate is granted. It provides valuable details to assist you further.
What Is the Easiest Way to Sell a House During Probate?
Working with a real estate investing company that buys probate property for cash can help you sell your inherited house fast and with minimal hassle.
Their cash offer eliminates the need for mortgage financing, shortening the closing time frame from the traditional 30-60 days to a week or two.
A cash deal also mitigates the risk of the sale failing because the lender denies the loan.
Additionally, these investors often buy “as is”, simplifying the sale whether the home is outdated, in need of repairs, or your issue is that you’ve inherited a hoarder’s house.
They have experience with inherited property sales and probate proceedings, too. So, they can help you avoid potential problems and delays.
This speed and simplicity isn’t just advantageous when selling a house with probate underway.
It’s equally beneficial when your inheritance allows you to sell a house before probate is initiated or when probate isn’t required.
To take the stress out of selling in either of those scenarios, request a cash offer and experience a smooth, efficient sale.
