Selling a dream property can certainly be a matter of big challenge, for all kinds of owners in this world. The same thing happens in the case of probate property and absentee property too.
From having correct probate house sale to efficiently selling an absentee property, all these matter can definitely of huge concern, for all the probate property as well as absentee owners, if they are not able to understand all the important information and appropriate procedure for selling these valuable, properties in the best way possible, effectively and efficiently.
For all these property owners, without having all the relevant knowledge, it is nearly impossible to sell these properties by getting the best investment benefits.
In this post, we will be helping all those probate and absentee owners, to clearly as well as concisely understand the whole concept of selling probate properties as well as absentee properties, with all the necessary data.
What Is A Probate Property?
Probate property is a type of property that is left behind by a person, who has expired and thus has to go through a complete probate process. It is not always mandatory for all of an expired person’s property or assets, to go through a full probate procedure.
Instead, it mainly depends on other concerned people or beneficiaries, and whether or not they have been placed into the property trust. Probate property can include family heirlooms, investments such as stocks or bonds, vehicles, and collectibles, but these probate properties are mainly known in the form of houses.
A probate property is a house that is an important part of a deceased person’s belongings and will only be sold by the executor or the property administrator. This executor or the administrator, is a person who has been granted all the probate rights or letters of becoming an administrator from or by the court.
This executor or administrator of the probate property will be in full responsibility for selling the property. They will need to get or obtain legal authority to do this, usually in the form of, as said above, grant of probate or letters of administration.
This legal authority gives them the complete power to manage all the deceased person’s assets, including the probate house.
When Is The Probate House Sale Done?
When someone passes away, all the house property from their estate, must go through a complete probate process. This is a judicial court process, which will be verifying the person’s overall estate along with overseeing the smooth distribution of the property, to their family heirs as well as other beneficiaries.
These assets/property such as a house, that completely belongs to the decedent, and thus pass through probate process, are known as probate property. When anyone discusses a probate property that is for sale, it is typically being referred to a real estate, such as a house.
A probate house property is usually sold when there is not ample liquid assets available, to pay off all the debts as well as creditors of the property.
An executor’s or property administrator’s main duty is to accurately preserve all these probate house assets, so that they are only able to sell probate house property when they need to do it, or when they are ordered or bound to do so by the probate court.
How To Sell A Probate House Property
Selling a probate house property is not as simple and same as selling a normal property for a number of reasons. Many people who are given the task of executing a probate house sale will also find the whole process stressful. There are mainly two types of probate house sales.
1. Probate House Sale Without Grant Of Probate
There are four ways in which probate houses can be sold, without getting access to do it. These four ways are:
- Joint Ownership: If the house is jointly owned and the owner is still alive, such as a surviving spouse or any partner, the property can be easily sold without grant of probate as the house ownership automatically transfers in the hands of the surviving owner(s).
- Survivorship Clause: Survivorship clauses are most commonly used to stop or hold a house property or any other real estate from passing through a complete probate process, two times in quick succession.
- Property In Trust: Sometimes, if the owner has set up a trust for any house property, the trustee may be able to sell the house without access to probate.
- Small Estates: If the overall value of the deceased’s house, is assessed below a certain fixed level, it might not need for the court to grant probate to sell the property, effectively and efficiently. Instead, a simplified process called the small estate procedure, can be used.
Other than this, there are no specific criteria to identify a house estate as ‘small’. It is also important to note all the specifics, if any, will depend on individual circumstances.
2. Probate House Sale With Grant Of Probate
There are five ways in which probate houses can be sold, by getting access to do it. These five ways are:
- Sole Ownership: If the property was solely owned by the descendant, a probate grant is definitely required to legally transfer the property’s ownership rights to all the beneficiaries, for selling it. This grant proves an executor’s acting authority on behalf of the descendant.
- Complex Properties: When a descendant’s property is complex and involves different assets, beneficiaries and outstanding debts, obtaining a legal probate grant is usually necessary. It helps to ensure, all legal and financial matters are correctly addressed during the sale of the property
- Probate Disputes: If there are any legal disputes connected to the property, such as doubt on the validity of the will or conflicting claims to the property, a legal probate grant is often needed to resolve these issues before probate house sale.
- Mortgages Or Liabilities: If the deceased had any property mortgage or outstanding debts, the probate grant may be needed, to settle all these financial matters, prior to the property sale
- Third-Party Needs: Some banks and financial institutes or any property buyers, may request a probate grant as part of their due diligence process while dealing with a probate house property.
What Are Absentee Owner Properties?
Absentee owner properties are a type of property, which is owned by a person but he or she does not live in it as their main residence. These absentee owner properties are also widely popular as non-owner occupied properties.
There are many reasons how a property becomes an absentee owner. It could be a rental property, a vacation home property, a property purchased for a loved one to give them for residing, or even an inherited property in which an inheritor may or may not want the property.
Types Of Absentee Owners And Their Properties
Certainly, there are various types of absentee owners and their properties. All of them are discussed below in a set of bullet points.
- The owner is living in another city or country for a long period of time and cannot manage or care for the property, in-person.
- The owner has expired, and the property is being completely managed by an executor, trustee or any other.
- The Property is in probate and is currently under the court of law.
- The property is a vacation home, or in a short-term rental or a long-term rental.
How To Sell Absentee Owner Properties?
For all kinds of absentee owners, there are many different things to keep in mind for getting an absentee property sold, effectively and efficiently, and all of them are explained below
- Preparing The Property For Sale
The initial step in selling an absentee property, is to make sure it is in the perfect condition. It includes timely cleaning as well as making all the necessary maintenance repairs. Before selling an Absentee property, all its owners should definitely be serious, about the exterior of the property.
- Pricing Competitively
Competitive pricing, is crucial for selling an absentee property, in the best way. Absentee owners should research the local market and must consult with a professional real estate property listing company, to determine the correct market value of the property.
- Hiring Professional Real Estate Listing Company
Selling an absentee property can be challenging for all the owners, and this is where working with a professional real estate listing company, is highly suggested. Modern real estate agents professionally offer the services of fast, fair, and direct absentee property sale.
- Flexible In Property Showings
For absentee owners, it’s challenging to coordinate all the visits of these properties. However, being flexible with the visits can easily make an important difference, while selling the property. Hiring a property manager or a real estate agent will help to efficiently handle property visits on behalf of the owners.
- Effective Property Marketing
Marketing the property effectively is essential, while selling an absentee property. It is crucial to have a robust online presence of the property, to attract potential buyers. It is vital to consider listing the property on the websites of popular real estate listing companies. Absentee owners can also use social media platforms to promote their property, effectively and efficiently.
Conclusion
For all kinds of probate and absentee owners, selling their properties can certainly be a challenging task, as selling these properties is not that as straight and simple as selling a normal residential property.
To efficiently handle the complexities associated with it, it is important to understand the selling procedure of these properties and consult a professional real estate listing company as soon as possible, to sell it in the best way possible.