by Christina Hronek
Accomplishing a sale of a residence is difficult enough; imagine if the client passed away.
In the event the property was held in the sole name of the decedent, the Probate Court will need to appoint an Executor or Administrator to facilitate the sale of this property. In this situation, the best case scenario is if the decedent had a Will which gave the Executor the power to sell any real estate owned. In this case, once the Executor is appointed a new listing agreement can be signed (if the property was already for sale) and the property placed on the market. The Executor will then have the power to set an asking price, accept or decline an offer, and sign the Deed. Once the Will has been presented to the Probate Court, the Executor can be appointed in a matter of days.
In the event the client did not have a Will, the path ahead can be difficult. First, a person must come forward to be appointed by the Probate Court as Administrator and post a bond. In many situations, the property can only be sold through a process known as a Land Sale, which can be cumbersome and time consuming. Before the property can even be listed, all the interested parties of the estate (next of kin, lien holders, etc.) must be notified and have an opportunity to object to this course of action. An appraisal and thorough title search must be conducted.
Under a Land Sale, the property usually must then sell for 80% of the appraised value, unless otherwise approved by the Probate Court and the interested parties. Further, all expenses of sale, including broker commission fees, must be approved by the Court. The speed with which a Land Sale is successfully accomplished is highly dependent on the cooperation of all parties and could take several months.
This information is general in nature. If you are confronted with this situation, contact an Attorney for more specific procedures and advice.
Christina M. Hronek, is an Attorney with the Law Office of Laura A. Balzano, LLC, located in Brecksville, Ohio. Her practice areas include estate planning, probate, real estate and small business.
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