With so many questions that need to be answered, navigating a probate property in Dallas - Fort Worth can be overwhelming. We offer insightful information about probate properties and practical methods for confidently managing them below.
Understanding Probate
When a homeowner passes away and their property is not jointly owned with full survivorship rights or placed in a trust, the legal process that follows is known as probate. Unless the will expressly names the property to specific people, real estate going through probate usually needs to be sold so the proceeds can be divided among beneficiaries. Choosing where to file for probate is the first step; this is typically done in the municipality where the property is located. Probate proceedings must take place in the county where the property is located in many states. To review the will and get the required paperwork ready for submission to the court, you will need to hire an attorney. The judge then uses the deceased’s will as the primary basis for determining who is entitled to what. Judges almost never rule against the terms of a will.
Handling Probate Expenses
Probate costs can either be paid for out of pocket up front or arranged to be subtracted at closing. In addition to negotiating the sale and carrying out the contract, the estate executor will determine the property’s listing price. In order to deduct their fee from the sale proceeds, your probate attorney will send their invoice to the title company overseeing the transaction. Depending on your state and the value of the property, these legal fees can range from several hundred to more than a thousand dollars.
Listing Restrictions for Probate Properties
It is crucial to realize that without specific court approval, you are unable to sell or list the property prior to the completion of probate. To list the property, you need to ask the court for permission. Once the listing is approved, you can accept offers and sign contracts, but the closing cannot take place until the probate process is finished. The legal authority to sell the property is clarified for the title company at the time the probate case is filed.
Determining the Optimal Selling Price
Get the property professionally appraised to ascertain its worth and spot any structural problems, which need to be mentioned in the sales contract, in order to set a fair asking price. Consider the probate costs when evaluating offers. Make sure the offer adequately covers these costs for undeveloped lots. The cost of probate completion will be much less than the sale price of the majority of residential properties. Listing at the lower end of comparable market prices or appraisal value will draw offers more quickly if a speedy sale is your top priority.
Next Steps After Accepting an Offer
Execute the contract right away after you’ve negotiated a fair price or received an acceptable offer. To get clarification on the terms and riders required to complete the transaction, speak with a real estate lawyer if you have any questions. Make sure the title company you choose has the invoice from your probate lawyer so they can deduct this cost from your proceeds.