Myths About Selling a House in Probate Busted

Posted by Techyscouts | Posted on 07/14/2024
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    • After a person passes, their estate typically goes through the probate process. This legal process can be confusing for most people. It requires a trust real estate broker in Los Angeles, like Michael Millea, to assist you along the way. To help you better understand the process of selling a home during probate, we’re going to address some of the most common myths below.

    All Properties Can Be Sold

    It’s important to realize that not all properties can be sold during the probate process. For example, if a specific property is held in joint tenancy with rights of survivorship, it may not be sold during the probate process. It can be helpful to speak with a Los Angeles trust real estate agent to understand the types of California properties that can be sold during probate.

    An Executor Decides If a Property Will Be Sold

    When you draw up a will, you’ll choose a specific executor who will be responsible for executing what you have set out in the will. While this person does have authority over how to handle the assets of the deceased, they cannot make a sole decision to sell a property. Rather, the executor must petition the court to authorize the sale of any real estate. During this process, all beneficiaries are required to be given notice of the intent to sell, like the heirs and creditors of the estate.

    The House Can Be Sold For Any Amount

    It can seem like common knowledge that you can sell a property for whatever amount you decide to. However, this isn’t the case when it comes to selling properties in probate. It’s a requirement to sell the property at a fair market value. This is necessary to ensure that all the beneficiaries receive their fair share of the proceeds from the sale. In fact, it’s necessary for the purchase price of the home to be authorized by the court before it can be officially sold.

    You Can Sell a House in Probate to Get Money to Pay Off Other Debts

    Probably one of the biggest misconceptions about selling a house in the probate process is that you can do so to pay off other debts from the estate. This simply isn’t the truth. An executor will not be able to obtain court approval to sell the house if there aren’t enough remaining assets in the estate to cover all the known liabilities and legal fees. It’s important to remember that the liabilities of the estate take priority, and the creditors’ legal interest in the house supersedes the desire to sell it from the will’s executor.

    The Sale Will Take Years to Complete

    It’s essential to realize that the total time an estate spends in probate is going to depend on numerous different factors, such as the size of the estate. However, most probate processes only take around six months to a year to complete.

    If you need the assistance of a Los Angeles trust real estate agent, then rely on the professionals at Mike Millea. Contact us today.

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