Key Terms
- Executor/Administrator: The person responsible for overseeing asset distribution, determined by the will or probate court
- Beneficiaries: Those who receive the asset distributions of the deceased
- Probate Court: The legal court that oversees and approves estates in probate
You may be expecting to inherit property or have just inherited property from a loved one who has recently passed. Before the property and other assets of the deceased are officially given to you, you may have to go through a probate process. Once you’ve received your portion of the estate, you’ll have to decide what to do with the property you’ve received.
For big items like real estate, there are several factors to consider before deciding to keep the property for personal use, rent it out, or sell it. If you choose to sell your new property after weighing your options, it’s beneficial to familiarize yourself with how to sell a home in probate before you get started.
What is a Home in Probate?
Probate is the process of sorting out an estate after someone’s death. It involves paying off any bills or debt and distributing what remains according to the will of the deceased. When referring to real estate property, the probate process occurs when the property of someone deceased must be transferred to the inheritor.
In some cases, when a home is in probate inheritors must get court permission to transfer the property to themselves. To begin this process an inheritor must open a probate case.
Although each state will have its own distinct procedures for will approval, receiving approval of the presented document allows inheritors to receive assets as determined by the will. Probate cases can become complex if there’s no will, if there are multiple heirs, or if there are disagreements among the beneficiaries.
The Probate Process
File A Petition
Validate the will
Take Inventory
Pay debts and taxes
Distribute assets
1. File a petition with the court
In California, petitions must be filed in the county of residence of the deceased at the time of their death. The document you’ll need is called form DE-111. After completing this form, the court will schedule a hearing within 30-40 days. The hearing notice will be sent to all those who are mentioned in the will.
2. Validate the will
The will must be acknowledged by the probate court that it was authorized by the deceased beyond a doubt. This step is usually a precaution and formality as most wills are signed, dated, and have witnesses present at the signing.
3. Take Inventory
The administrator or executor of the estate will take inventory of all the probate assets. This includes personal property, vehicles, and bank accounts that have no beneficiaries. Additionally, all physical assets must have the title transferred to the beneficiaries.
4. Pay Debts and Taxes
If the person who passed had any outstanding payments, those debts will need to be paid before assets are dispersed among the inheritors. Creditors are given notice of the death by the administrator and may write a claim against the estate. Once those claims are approved by the court, they are paid from the estate.
5. Distribute Assets
Once taxes and debts are paid, beneficiaries receive their portion of the assets as outlined by the will. After distribution, a final hearing occurs to close out the estate. In this hearing the executor presents a report to the judge and receipts to prove that beneficiaries have received their allotment of assets.
Selling Property Through Legal Petition
The appointed executor will need to seek court approval to sell the property. Once permission is granted, the executor will follow the traditional steps of selling a home: getting an appraisal and setting a price. Once a selling price has been determined, the executor creates a property listing. The home can be sold by the owner, sold with a real estate agent, or directly sold to an investor or company that buys homes for cash like Quickturn Property Solutions.
Whichever route is chosen, finding a professional who has experience in probate sales will help guide the process. Finally, any real estate that has been handed over to beneficiaries and is sold must be reported. The executor will use form DE-260, Report of Sale and Petition for Order Confirming Sale of Real Property.
Sell Your Home In Probate Without Court Permission
After the executor opens the probate case, they have a right to sell the property without court approval under certain conditions. The inheritors must be given 15 days notice before beginning the sale and all inheritors must consent to the sale. If these two conditions are met, the property can go on the market so long as the price is at least 90% of the appraised value.
We Can Help
Whether you decide to keep your property or sell it, understanding the intricacies of a home in probate is crucial. The probate process involves multiple steps and when it comes to selling a property in probate, obtaining court approval or meeting specific conditions for a non-court-approved sale is necessary.
By familiarizing yourself with these procedures and seeking professional guidance, you can ensure a smoother transition and make informed decisions about your newly inherited property. If you need further assistance, our team at Quickturn Property Solutions is here to help you through every step of the probate sale process.