DEALING WITH PROPERTIES IN PROBATE…
We are experts in dealing with the sale and marketing of properties tied up in the complexities of probate proceedings…
The process of marketing and selling real estate that is in probate requires a high level of expertise apart from the normal sale of real property. Documents, such as purchase contracts and listing agreements, and legal requirements, such as disclosures, are different from those used in traditional real estate transactions. National Trust and Probate provides the guidance to the family or personal representative through the maze of requirements ensuring that the value of the asset is maximized for the estate.
Probate of a family or friend’s estate involves determining the assets that are subject to probate which may include real estate that must be sold under the court’s supervision. Court regulations mandate that the real estate agents involved manage and monitor deadlines, specialized documentations, preparation of the property for sale, pricing, marketing, offers, negotiations and the successful close of escrow.
Once an offer is accepted by the estate, the Probate Code by statue sets a minimum first overbid. The real property continues to be marketed and advertised in the hopes of securing a potential buyer who will make an offer over the accepted offer at the confirmation hearing in court. The first overbid is set at 10% of the first $10,000 of the accepted offer plus 5% of the balance added to the original accepted offer.
For Example: A property is listed at $549,000 and an offer is accepted at $500,000.
The minimum first overbid is calculated as follows:
Accepted offer = $500,000
10 % of $10,000 = $1,000
5% of $490,000 = $24,500
Minimum first overbid = $525,500
Additional buyers may attend the court confirmation hearing of the sale and overbid the original accepted offer. The overbid process and court confirmation of the sale insures that the estate receives the maximum value for the real property.
Most real estate agents are not experienced in the probate process. Probate is a complicated legal matter requiring a high level real estate agent who specializes in the complexities of pricing, marketing, and managing the interests of the estate through this process. National Trust and Probate has the expertise and experience to make sure that those interests are handled with care and in a timely manner.
For a consultation regarding your probate and trust property, please contact the advisors at National Trust and Probate at 805-750-6577 or 818-606-7515.