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Did you know that 67% of Americans don’t have any kind of estate plan ready? The impressive state makes for a lot of probate property buying opportunities in the US.
But what is probate property and how does it get bought and sold? It’s important to understand the basics before buying probate property.
The following probate property guide will explain everything you need to know about this type of unique real estate.
What is Probate Property?
Probate property involves the legal procedure for examining the will and assets of someone that’s no longer living. Then, it’s decided how those assets get dispersed.
Probate courts protect the assets and have jurisdiction over them. If the deceased person had a valid will, their assets get passed along to their beneficiaries. The probate court handles the case if someone challenges the will.
Intestacy occurs when people pass away and don’t leave behind a will. So, the court uses probate law to resolve who gets certain assets.
The process typically goes from spouses and children and then to parents. Distant relatives are next, but the precise inheritance order varies depending on the location’s laws.
Buying Probate Property
First, try calling a local real estate agent and ask them if they work with probate properties. Let them know the type of probate property you want and your budget. The agent will let you know about any available matching your criteria.
You can also call your local probate court and speak with the clerk. Ask for a list of different probate lawsuits that got filed in the last 6 months.
You can sometimes buy probate property at public auctions. Farms are a good example of common properties sold at auctions. Keep in mind that a lot of people might attend a public auction which might raise the price substantially.
Selling Probate Property
It takes a string of court-regulated actions to sell a probate property and requires careful management. The deadlines are strict and special documentation gets overseen by the court during marketing, offers, negotiations, and the final sale.
The probate sale normally includes an estate administrator, estate attorney, the seller’s agent, and bidders. All of these people have to follow the deadlines and court guidelines to participate.
Probate sales have an extensive vocabulary due to the court’s involvement. They also have unique disclosure documents and contracts that aren’t found in other types of real estate sales.
Whether buying or selling, always make sure that your real estate agent has adequate experience with probate properties. They must be able to clarify the verbiage, the documentation, and all of the stages.
Understanding Probate Property
So, what is probate property? It’s a deceased person’s assets that might be available for purchase if they didn’t have a valid will. It’s possible to get great deals on these properties, but remember that you’ll need a team of experts to help guide you.
Check out our finance and law categories for more fantastic real estate information.