{"id":27396,"date":"2024-11-14T08:03:59","date_gmt":"2024-11-14T16:03:59","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=27396"},"modified":"2024-11-15T21:25:52","modified_gmt":"2024-11-16T05:25:52","slug":"buyer-what-is-a-probate-sale","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/buyer-what-is-a-probate-sale\/","title":{"rendered":"What Is a Probate Sale? Answering 4 Big Questions About This Tricky Transaction"},"content":{"rendered":"

You\u2019re interested in buying a house, and someone told you about probate sales<\/a>. You vaguely understand that these can provide opportunities for a bargain. But if you\u2019re being honest, you really have no idea what a probate sale is or how it works. That\u2019s OK! We\u2019ll walk you through it.<\/p>\n

Essentially, a probate sale happens when a homeowner dies, and either does not leave a will, does not make it clear in their will who the property should pass to, or leaves behind outstanding debts that can only be satisfied by the sale of the property<\/a>.<\/p>\n

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Probate refers to the legal process whereby a court confirms the distribution of property as dictated by a will and ensures that debts are paid before the remaining assets are passed on to the beneficiaries. In the absence of a will, or if the will is unclear, incomplete, or contested, probate determines who will take ownership of the property.<\/p>\n

It\u2019s important to note that probate law and procedures vary from state to state, so there\u2019s no uniform application of every rule and procedure. Moreover, probate sales of real estate can vary from state to state.<\/p>\n

And if you think all of this sounds complicated, you\u2019re right: Probate sales are often tricky, complex, and drawn-out transactions that can present additional challenges for a would-be buyer, but can often result in a significant bargain for the buyer<\/a>.<\/p>\n

In this expert-backed guide, we\u2019ll answer some of the most common questions about probate sales to help demystify this type of transaction so you can determine whether it\u2019s right for you.<\/p>\n

<\/div>What is a probate sale?<\/h2>\n

Let\u2019s start with the fundamentals. Again, \u201cprobate\u201d refers to the legal process by which a court determines the validity of a will and how any property in the will is to be distributed.<\/p>\n

People prepare wills to specify what they would like to happen to their property after they die. Even if no one contests what is dictated in a will, a will must generally be approved by a probate court to ensure outstanding creditors or other claimants have an opportunity to collect any debts from the deceased\u2019s estate before ownership is transferred.<\/p>\n

It\u2019s also important to note that the need to go through probate and the court\u2019s involvement is almost always triggered when someone dies without a will (also known as dying intestate) and has left behind substantial personal or real property.<\/p>\n

An actual \u201cprobate sale\u201d can arise or be ordered by the court when the property owner passes while still owing substantial debts, and it is determined that the property needs to be sold to cover those outstanding debts<\/a>.<\/p>\n

To complete the probate process involved with these sales, a designated representative or attorney will likely need to be appointed to actually sell the property, with the heirs to then receive any net proceeds from the sale<\/a>.<\/p>\n

Something to keep in mind: the whole probate process can be long and complex given that it is all overseen by the court, and any sale must be approved by court order.<\/p>\n

That is, \u201c[w]ith a probate sale, you need a court order \u2014 you can\u2019t just have a buyer and seller agreeing,\u201d says Mark Moskowitz<\/a>, a top-selling Agoura Hills, Los Angeles agent<\/a> who has over three decades of real estate experience. \u201cYou have a third party, and any time you have a third party, it takes longer and can be complicated.\u201d (More on these complexities later.)<\/p>\n

<\/div>How does a probate sale unfold?<\/h2>\n

A probate sale can be complicated and take time. Spoiler: If you\u2019re interested in pursuing such a property, bring your patience and make sure you have a place to live in the meantime.<\/p>\n

This is what the probate process<\/a> tends to look like in a chronological timeline:<\/p>\n