How to Sell Real Estate During Probate

Probate is the legal process of transferring the property from a deceased owner or “decedent” to his/her beneficiaries. The subject property in a probate is owned by the decedent alone and is not directly willed to a specific beneficiary. The executor of the estate sells off such a property after receiving orders of the probate court handling the estate, and the court then splits the proceeds from the sale among all the legal heirs of the real owner.

A common question that comes to the mind of every beneficiary is, how long will it take to sell a property that is in probate? This may come as a surprise to many people, but usually the sale can be completed within two to six weeks. It is true that a probate usually takes one year or longer to complete, but to sell the property you don’t have to wait until the probate process is completed. The real estate can be sold as soon as the probate court appoints the “personal representative” to pursue the case.

As an executor of an estate you are required to follow sales procedures stated in the estate law of your local jurisdiction. There may be some minor variations in probate procedures in different jurisdictions, but the general process of selling the property that is part of a probate is almost the same across jurisdictions.

Start by appraising the estate that is required to be sold during probate. Always use an independent, certified appraiser to appraise the property.

After having the property appraised by an independent appraiser, get a petition to sell the property from the probate court. Fill out the petition and file it with the court along with the appraisal report. Now, wait for the probate court to approve your petition and allow the sale.

After receiving court’s approval, put the estate up in the real estate market for sale and accept an offer from a potential buyer.

Petition the probate court for a hearing to confirm the sale of the property. Usually the hearing takes place between 20 to 40 days but the time can vary depending upon the load on court.

Meanwhile, arrange for the deposit on the sale price before the scheduled date of hearing. You should also advertise the sale in the local newspaper, clearly mentioning the purchase price offered by the current buyer. The purpose of the advertisement is to allow for open bidding among interested parties at the hearing and gain the best price for the property.

Attend the hearing and wait for the bidding process to conclude. The winner will be required to submit a cashier’s check as a deposit at the spot. In this case you will be required to refund the deposit to the original buyer.

Complete the sale and close the contract.