When the owner of a property passes away, then his estate goes into probate. This is the legal term for the court process that decides how the inheritance will be distributed among the heirs. It is often a long and painstaking procedure that tests the patience of all the parties involved. Assets in probate are in limbo until they are released by the court to the rightful heir based on the will or the judge’s decision. However, some assets may be sold off during this period for liquidation. The laws that govern this vary from state to state so it is best to check with local lawyers.
There are plenty of benefits to selling a house in probate. Properties are sometimes more of a burden than a blessing since they continue to incur mortgage, insurance and utility payments even when no one is actually living there anymore. Handing them over to a new owner lessens expenses and complexities. The savings can be substantial since courts can take a few years to decide the fate of the estate with finality. There are cases wherein the decision took so long that the payments virtually outpaced the value of the properties. This can be avoided by following the rules regarding a sale in the state of New York.
Property Appraisal
The first thing that needs to happen is for the property to be appraised. This should be done by a competent professional who is certified to do the job. Find an independent and reputable person for the task so that the appraisal will not be questioned. Be sure that there are no conflicts of interest that would cast doubt on the figure provided. Appraisers can be found online or through real estate agents. Do a bit of background checking on the candidates before hiring one just to guarantee that you will get the best service possible. There are plenty of options in and around Buffalo NY.
Court Petition
The court is in-charge of the estate until the distribution finally takes place. A house in probate cannot be sold with its permission. A sale will only be possible through a legal petition to do so. The judge will have to grant this before sellers can list the property. Most buyers will not even look at the house unless they see that the petition has already been granted. There is a specific form that must be submitted containing the details of the projected sale. The information from the appraisal report should also be included in the petition for the judge’s evaluation.
Announce the Sale
Once the petition is granted, the sale may then be announced. Sellers should be forthright about the info contained in their ads. Potential buyers should be advised of the legalities surrounding the property particularly its status as being in probate. This will not have a negative impact on the transaction. It will just set expectations that the sale will be finalized only after the courts have given their confirmation. The time element may be crucial for some investors so they should know what they are getting into from the start.
Get Confirmation
It is necessary to get confirmation prior to the transfer of ownership for properties sold in probate in Western New York. The laws of the state are clear regarding this. The court must review the terms and give its nod. A hearing will have to be scheduled for this to make things official. Scheduling can be tricky depending on the amount of load being faced by the judges. It usually takes a few weeks before it can happen. This is an important hearing that should be attended to increase the chances of approval. Lots of important details are ironed out during this event.
Final Words
If you wish to sell a house in probate, then familiarize yourself with all of the laws pertaining to the process. Take heart because there are plenty of buyers in Western New York that will probably be interested in the property even though there are some legal hurdles that need to be faced. Arcane Properties is an experienced real estate company that specializes in the Buffalo NY area. We can purchase homes directly to reduce complexity and hasten the process. Call us today for more information.