What is Probate Real Estate?

It is understandable that you may not be that familiar with what probate real estate is if you have not yet had to live through the death of a family member that left the real property or perhaps have never been named the beneficiary of a will. We will attempt to give you an overview of what probate real estate is so that you are prepared in the event you must live through this particular situation.

What the Definition of Probate Is

Probate is the legal process of administering the estate of a deceased person, ensuring that all debts and taxes are paid and that the remaining assets are distributed to the beneficiaries. The probate process can be a complex one, and it is often handled by a probate attorney. Probate may be required if the decedent left behind assets that are not subject to automatic transfer, such as a life insurance policy, a 401(k) plan, or real estate titled to any surviving heirs or beneficiaries. 

In addition, probate may be necessary to settle any debts or disputes that the decedent person left behind. When there is real estate, that is what is called “probate real estate” and the sale of it could be necessary for a couple of reasons. Primarily, because the sale of the probate real estate is necessary to service any outstanding debts or liabilities. The sale could be conducted per the instructions of the will or testament. And lastly, it may be what is best for the well-being of the beneficiaries, in terms of money inheritance or avoiding family feuds.

Who Handles Probate Real Estate?

There are two scenarios that come into play and determine the name of the representative in charge of the decedent’s estate. When the decedent left a will or testament, the representative is named an executor. In the event that no such document exists, there will be what’s called an administrator that will be appointed by the court. This person can petition to play that role with the court’s approval. Either way, the estate’s representative will be in charge of handling the estate’s assets and liabilities. Among the most important and valuable assets is real property, which is called probate real estate. 

There may be a need to sell the real property within the estate. Here is when it is important to look for a highly knowledgeable team of people to help the administrator to sell for top dollar but will also know how to deal with this particular real estate transaction. A Real Estate Probate Brokerage firm will be the very best bet at that point. 

The Estate’s Representative and the Probate Real Estate

Once a representative has been named, as a result of an existing will or by being appointed by the court, the next step is possible. In the scenario the estate holds real estate property then it will be the responsibility of the representative to coordinate and handle all things pertaining to the probate real estate. At the recommendation of the probate attorney, or by individual decision, a Real Estate Probate Brokerage firm will be hired.

This is a very smart decision to make since this process of probate may involve many moving parts and taking the headache of making the right decision pertaining to the probate real estate is best left in the expert’s hands. Once the company has been hired, all communication typically flows between the administrator and the real estate probate agents, except in the cases where the agents communicate with the probate attorney for more clarification and coordination of the next steps relating to the court proceedings. 

The real estate brokerage will help with doing the initial property analysis and inspection to find out the real current condition of the property and coordinate to do an appraisal to determine market value. Once that is concluded and at some point in the early stages of the probate, the representative will be required to file a Report of Sale and Petition for an Order Confirming Sale of Real Property so agents can prepare to market and sell the probate real estate.

Realistic Timeline of Probate Real Estate

As already noted, the sale of probate real estate does not follow the same timeline as seen in the regular market, where things move along quicker or slower depending on the market’s demand. Within probate, the whole process, up to the point of distribution of funds to the beneficiaries may take up to a year. The first two months were a purely administrative process of the initial court’s petition and issuance of letters, mostly determined by the court’s calendar and availability.

The next phase and its timeline will be determined by whether the probate real estate sale will be a Full Authority Sale (under IAEA) or a Limited Authority Sale (under IAEA). With the first scenario taking somewhere between three to six months and the latter taking somewhere between three to nine months. Whichever it is, here is where having a Real Estate Probate Brokerage will bring the most benefit and whether the estate representative is able to get the most for the property. 

Crem Group

The CREM Group is a boutique Real Estate Brokerage that sets itself apart in the area of court-supervised real estate sales. Led by two partners that are licensed attorneys as well as real estate brokers, the CREM Group is highly experienced in dealing with the nuances of the real estate sale as well as the legal jargon and process of the probate case. Reach out to schedule a consultation and look at your particular situation today.

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