As the name suggests, probate assets must go through a court-supervised probate process after the owner dies, because probate is the only way to get the asset out of the deceased owner’s name and into the names of the beneficiaries. Buying property from a probate sale can be risky, but you can also come upon some lucrative bargains. You just need to do some research and find the terms and conditions that apply to the probate sale. Learn more about what is a probate sale and what you can expect when buying a house through this method.
When Does Property Have To Go Through Probate?
Dying without a will is known as dying intestate, which causes the estate to enter probate. Relatives of the deceased can petition the court to be named executor of the estate or the court can continue to manage the assets left by the deceased. Either way, the property will be overseen by a probate court. The proceeds of the sale will go to the heirs.
Time To Complete A Probate Sale
Buyers also have to work with the courts to buy a house through probate. While most home sales can close in less than a month, it can take between 18 to 36 months to close on a house in probate. This period takes longer because the process to list and approve the sale is more complicated.
Understanding Probate Court Proceedings
If you are interested in buying a house through probate, you may want to hire an attorney and a real estate agent. The realtor can help with the home-buying process while your attorney can give you the tools to navigate legal hurdles associated with the probate court. They can also serve as your representative for some hearings. One of the challenges of buying a home through this process is that the owner can’t disclose any known issues. They aren’t alive and can’t mention problems with the electrical wiring or leaks in the roof. This is why it is essential for buyers to hire a home inspector to look at the house. They can alert you to any problems with the property before you buy it.
How Are Probate Sales Different From Traditional Sales Of Property?
There are more pricing rules when it comes to selling probate property. Unlike with selling traditional properties, a probate property requires a sale price that is at least 90% of the appraised value set within a year of the sale. Because the two processes are so different, it’s important to hire professionals for the probate process. Otherwise, you run the risk of missing important steps, or being ignorant of certain laws and procedures. Those who are patient and willing to work with the legal system can potentially find a deal on a home.
Grubbs & Landry Can Help You Navigate and Avoid Probate
The death of a loved one is a very emotional time and we extend our deepest sympathy to each client needing help during this time. The last worry you should have is how to handle the estate matters. It is important to contact us as soon as possible after the death to assure efficient and accurate handling of the legal matters. There are certain assets of an estate that must go through the courts and other assets may be directly distributed to the surviving spouse, children or other beneficiaries. The first question to be asked is does the decedent have a Last Will and Testament? This document will determine the executor to be appointed to oversee the estate. If there is no Last Will and Testament, the intestate laws of the Commonwealth of Kentucky will be applied to the matters of the estate.
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About Grubbs & Landry
At Grubbs & Landry, PLLC, we are dedicated to personal and friendly service. We manage our practice in an ethical, cost-effective manner to best help our clients resolve their legal issues with the least expense possible. We pride ourselves in advocating for our client in divorce, child custody, and child support matters as well as other family law matters. We are active in prosecuting personal injury cases-recovering for the injuries our clients sustain due to the negligence of others. Additionally, we help our clients prepare for the future through the preparation of Wills, Power of Attorney and Living Will.