What is Probate When Selling a House?
Homeownership is an exciting life milestone. Often, people are shopping for their dream home, the place where they will live out their days. When a homeowner passes away, the house might pass to another individual through various means, depending on the estate planning and instructions left by the deceased person. But if there are no legal documents like a quitclaim deed or living trust to abide by, a home automatically enters the probate process.
What is Probate?
Probate is a court-supervised process of authenticating the last will and testament of a deceased individual. After determining the value of a person’s assets, they can be distributed to the appropriate beneficiaries.
For estates, it refers to the legal process through which a property transfers ownership after a homeowner’s death. If the decedent never made specific arrangements (such as a living trust) to avoid the probate process, then it must be enacted for the beneficiaries to receive the property. The presence of a legal will has no bearing on whether an estate enters probate. If the person left a last will and testament behind, the probate process includes reviewing the document.
But what is probate when selling a house? If the deceased leaves no will or doesn’t designate a beneficiary, the estate administrator or executor must sell the home. Where no executor or administrator is specified in the will (or lack thereof), the court will appoint one.
Florida Probate Law
The probate process of administering an estate varies by state. Under Florida law, there are two types of probate administration: formal and summary. Note that a property is only a probate asset only if the deed is titled in the decedent’s name. When joint tenants with survivorship rights or the deed are shared with a spouse, the property is not a probate asset because the ownership passes automatically.
A probate estate process in Florida must be open for a minimum of three months for a creditor claim period. It’s reasonable to expect the estate probate process to take anywhere from five to six months. The length of the process depends on whether the estate goes through a formal or summary administration probate. While formal probate administration takes longer and generally costs more, it can be used for any estate and requires a personal representative to be appointed.
Summary administration probates are often quicker, which may be valuable if the executor must sell the home to pay creditors. However, an estate is only eligible for summary administration when the decedent’s probate assets are valued at less than $75,000 or if the person has been deceased for more than two years.
Selling a House in Probate
When a house enters probate because there is no will or designated beneficiary, the court will appoint an executor or estate administrator to handle selling the property. Selling a house in probate is not the same as a regular home sale, and it’s a good idea to involve an attorney who specializes in estate law to guide you through the process if you’re unfamiliar.
Since an executor or estate administrator doesn’t own the home, they require court approval to sign over the deed at the time of sale. The probate process can slow down a deal because of the legal checkpoints you need to pass along the way, which can sometimes deter typical homebuyers. When a buyer becomes interested, you must inform them that you need court confirmation to complete the sale. Then you have to petition the probate court for an Order Authorizing the Sale of Real Property.
If there are beneficiaries of the estate, you must obtain their consent before proceeding. The court will then look over all the relevant documentation and grant approval for the property sale to the interested buyer.
As an executor, you might consider seeking a cash buyer since a home in probate is considered a distressed property. A cash home buyer can offer a quicker, hassle-free transaction without additional fees.
The Benefits of Selling to a Cash Home Buyer
When you’re trying to sell quickly or sell a distressed property, a homebuyer like Meli can be a fantastic option. They offer several advantages such as:
- Lower financial risk
- No involvement of a financing institution
- Sales usually occur as-is with no requests for upgrades or home repairs
Selling to a cash buyer also means there are no additional fees like the commission you’d pay a real estate agent that’s helping you bring in traditional buyers. When you’re selling a house in probate, it’s common that most of the money will go toward paying off the decedent’s mortgage lender or other creditors. So while you might accept a slightly lower offer from a cash buyer, especially with a distressed home, you’re saving money on commission costs, bank fees, home inspections, and repair costs.
Contact Meli Homes
If you have to sell a property in probate, get in touch with Meli. We can work with you to close quickly, typically within 30 days, and pay the full price in cash to cut out the complexities of a lending institution.
If you’re located in Orlando, Tampa, or surrounding Florida areas, give us a call at (407) 338-4183 to get started. We will get back to you within 24 hours to request some information about the property, including:
- The home’s address
- Photos of the home’s exterior
- Additional information relevant to our offer (title claims, inheritance claims, etc.)
Then we can schedule a date and time to view the property. After a walkthrough of the house, you’ll receive an offer to review with no obligation. If you decide to move forward with the sale and sign the contract, we pay in cash.
On average, Meli Homes saves Floridians $3,000 in legal fees and 22 days in the selling process. If you need a quick sale on a home in probate, contact us today.
This article is meant for informational purposes only and is not intended to be construed as financial, tax, legal, real estate, insurance, or investment advice. Meli encourages you to reach out to an advisor regarding your own situation. Please consult with your advisor when making legal or financial decisions.
Image Credits
https://unsplash.com/photos/wkfZyteTMOA
