You have recently become the executor of an estate and real estate (real property) needs to be sold as part of the settlement. What needs to happen next?
The process of selling Real Estate through a trust or probate isn't much different than selling a property from an individual, however the process takes a lot longer and Real Estate sales usually happen toward the end of the trust settlement process.
Settling an estate is can be challenging because often times multiple family members are involved in the decision making and it is often a very emotional and challenging time for families. Having a team of professionals from lawyers to title companies and your Real Estate agent, who are sensitive to the emotional intensity of settling an estate, but who also provide a neutral and pragmatic advice is key to settling the estate smoothly and fairly.
Whoever is the executor of the estate, will need to be very organized and hopefully computer savvy enough to be the keeper of all of the paperwork for the estate, but also able to scan and email documents as needed for the estate. Today the majority of real estate paperwork happens electronically so having access to a scanner and the internet as well as having all of the paperwork in one spot so it can be easily accessed is important.
There are a number of court steps and some additional documentation needed to sell a home through an estate. The first step is usually a probate process where the courts assign executor status and outline the settlement requirements. If the individual who passed away did not have a will and no lawyer was involved, then the process to transfer title and arrange the estate can take much longer. There are documents that are specific to the estate that will also need to be available to the Real Estate agent, mortgage broker and title company, such as the court order that specifies who is legally permitted to sell the house on behalf of the estate and documentation specifying the exact name of the estate. The proceeds from the sale will also be dispersed to the estate so whoever gets the proceeds from the sale will get payment after the estate is settled.
Deadlines of both the court and the real estate transaction are also very specific and must be met and managed. The exact name on the estate and in public records needs to be available and fixed if there are any problems. If the estate has been handled by a good estate attorney the paperwork is usually in good order and there will be fewer steps for the family to complete on their own. If the trust or estate is not being executed by an attorney the administrator of the estate will have a lot more paperwork to file with the courts, the administrator needs to be very good with paperwork and have a keen attention to detail. Beware of solicitation from investors and real estate agents who comb public records looking for recent death records to take advantage of grieving families, like any transaction it is good to investigate the professionals you use.
Finding a Real Estate agent that is familiar with estates, can help the family navigate the emotions of selling inherited property through grief and who can be a resources for various services that are needed will help through a difficult time.
Have the title company engaged in the sale of the property as soon as possible, this will help insure that all of the title work complete and is properly documented. The attorney, title company and mortgage broker for the buyer will also advise the Real Estate agent what specific paperwork is needed from the estate to complete all sides of the transaction.
If you have questions, need resources, or simply want to be connected with a Real Estate agent who specializes in estates, please don't hesitate to contact me, I am happy to help with whatever you and your family might need.
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