Probate in real estate is the legal process after a homeowner’s passing, where the property either transfers it’s ownership to an individual or is sold off. It’s another way of detailing the proceedings by which the deceased’s will is handled in court — a special court, however. In real estate cases, it is in reference to the prior owner’s respective home.
Probate usually is in reference to the management of a deceased individual’s will. Most of the time, said management includes a home — the similar probate real estate investors are anxious to acquire.
So, why would real estate investors have interest in probate properties, specifically when they aren’t even on the will of the deceased? It’s simple: there are exceptional deals that are available. Not everyone wants to inherit property from a relative that has passed away. The recipient might not be able to afford the expenses related to the property, and are, consequently, more willing to promptly part ways with the home; this is where real estate investors get involved.
Investors can spin the new owner’s unwillingness to own a new property into their opportunity. Their uninterest serves as incentive to rid themselves of the home, and persistent investors may be able to jump on it.
Probate Real Estate In Four Steps
Probate real estate processes may seem confusing among the court proceedings and legal forms; nevertheless, probate properties will usually follow the same route. Overall, there are four primary steps of the probate process (proceedings will vary from state to state). Keep reading for a clearer picture of probate real estate:
- Executor Of The Estate: In order for the probate process to start, an Executor of the estate needs be designated. Usually, the Executor is named in the deceased’s will, if that doesn’t happen the court will designate an Administrator to take the role. The will includes if the property is going to be inherited by an heir or be sold off.
- Property Appraisal: If the property is going to be sold, the Executor will then establish a listing price for the property. The listed price will be established following an appraisal with the assistance of a real estate agent knowledgeable in probate sales.
- Property Listing: Following the listing price being determined, the property then goes on the market. The real estate agent working the property will market it just like any other house, utilizing signage, online entities, and more to entice a high offer.
- Approvement And Sale: After an offer is provided, the real estate agent will haggle the conditions to gratify each party. Each of the heirs of the estate will be mailed formal notice putting forth a fifteen-day period to challenge the properties sale. When there aren’t any challenges, a court date will be planned in which the sale of the house will be formally carried out.
How Long Will Probate Take?
The probate process takes an average of two years, though it will differ subject to several circumstances. As reported by FindLand, a typical probate process may be impacted by the number of heirs, any matters with the carrying out of the will, and any taxes or debts associated to the property. In addition, state, and local laws where the property is at could affect the overall timeline. The reasoning probate can last for so long is that the differing legal proceedings related with the process takes time.
In many cases, probate can take just 6 months, though this is not always the case. Investors that have taken on probate properties may be mindful of this: but the with a will can speed things up considerably. The reasoning is a will signifies that the property has already been designated to a particular beneficiary. That heir can then choose how to progress with the property.
To avoid probate, homeowners can use a revocable living trust, a legal document outlining how their property is distributed upon passing. Creating this involves drafting a trust document and transferring assets. While not obligatory, forming a trust for property and assets can offer lasting benefits. Despite the potentially serious nature, it’s common for people to actively establish a living trust and/or will for future planning. Legal help isn’t necessary but can be invaluable in the process. When done right, a well-prepared revocable living trust helps homeowners, or their trustees, avoid probate court after passing.
Merrill, T. (2020, October 09). Probate Real Estate Made Simple. Retrieved January 07, 2021, from https://www.fortunebuilders.com/probate-real-estate-guide/
Moshier Law Offers Estate Planning in Scottsdale, AZ
Divorce and Family Law
When a case demands litigation, you’ll have the benefit of 19 years of litigation experience in California and Arizona. But when a case demands collaborative law or mediation, you’ll know every option.