Buying a Home Through a Probate Sale
At its basis, buying a home which is being sold from a Minnesota probated estate is the same as purchasing a home normally. There are a few details that you may need to work around, depending on the situation, such as a potential auction.
Perhaps you want to even stop the sale from happening in the first place and have good reason for wanting to put a halt to things. One factor you should keep in mind is that this sale might not be happening for purely selfish reasons. The circumstance could well be that the sale is the family’s last chance at staving off debt. It’s best to understand the following so that you know how probate law may change both the selling and buying process.
The Main Reason
Buying a home in a probate sale usually means that it’s going to be sold for a lower price. One contributing factor might be that the original owners aren’t around to take care of it. At least one of the owners is most likely deceased, but that might not be the only contributing factor. These sales often take place because no one wants to or has the ability inherit the property. The price of the home could even be lower than most of the other homes in the area because of how it has been maintained.
Note that these homes aren’t always in the best of conditions. If you like fixing up homes and making them feel like new again, one of these homes might be to your choosing. Don’t expect that there can be much to be done to improve the home before it becomes your property. These are often sold in the condition that they were left it. Assume that the domicile that you see is the lodging that you’ll get.
Stop the Probate Sale
An heir can stop the auction of a home if they aren’t comfortable with a presented offer. The house will probably be sold once the sale takes place, but that doesn’t mean a legal heir won’t want to prevent things before they happen.
Similarly, the court will still need to agree that everything is legal. Moreover, the whole reason why this sale came to be a hypothetical reality could be because the court or executor thought it necessary. This might not be the family’s first choice.
Any heir that hears an offer might want to challenge it. To be on the safe side, presume that the executor is working with at least one heir directly. Executors are duty bound to ensure that the estate is handled just how the deceased wanted, and they might be trying their hardest to keep the will’s beneficiaries happy. Home sales can be a bit more complex when all of the probate details are brought in.
Selling Options
Not all homes that go through probate are sold in a traditional sale. Some are put up for sale in probate auctions. If you’re looking to do a bit of bidding on the home, make sure you look for an ad concerning the home. Both information pertaining to the house and the date of auction have to be made known. You might not need to worry about the heirs as much, but that doesn’t mean the mansion of your dreams will be yours for sure.
Like most auctions, the property goes to the highest bidders. There’s always the chance that there might be other people to provide counter offers on the home. Moreover, these auctions often entail visiting a courthouse to provide any bids. A cashier’s check will be needed as well, as the person who won the auction will need to hand one to the executor. Ten percent of the home’s sale price needs to be provided up front.
MN Probate Home Sale | What to Look Out For
Besides everything that was mentioned previously, you still should be aware of a few things. Firstly, events might take more time than you realize. It may take a longer time to close the home compared to a typical sale. Then, you may also have to wait on the IRS to be satisfied. The estate could still have to settle up so that there are no unpaid estate taxes. When in doubt, consult the executor if you’re wondering what kind of debt the estate might be in and to understand what kind of things need to be accomplished.
On another note, like every home, there might be things that you didn’t know about or the estate didn’t know about. The homeowner may not have notified everyone about the defects such as bad pluming or indoor flooding. Probate sales can also involve working with a special probate real estate agent who’s been trained to handle these kind of matters. You may even have to be prepared for fees relating to legal matters, appraisals, and other relative factors.
Minnesota Probate Home Sale Lawyers
Should you ever find that you’re having difficulty on either side of the purchase, when buying or selling a home through a probate sale, consider talking with a probate lawyer. This doesn’t mean that you should neglect talking to a real estate agent who’s familiar with selling homes through a probate sale, but an attorney might be able to cover various other aspects.
Should the executor have any problems pertaining to the case, involving Flanders Law Firm LLC is a recommended option. Call them at 612-424-0398.
If you’re not sure everything is being handled correctly, a second opinion should always be available.