Probate Property

Probate property is a property that is owned by a deceased person after whose death, it is secured by the appointed estate administrator. Such a property cannot be distributed or sold until the estate undergoes the court ordered process of settling outstanding dues and debts and determine the rightful heirs of the estate.

Values of such probate property depreciate during estate settlement proceedings which usually take 6 to 9 months to complete. Real estate suspended in probate pays its costs like mortgage instalments, property insurance, property taxes, homeowner's association fees, required maintenance etc through the decedent's estate.

Estate administrators can list such a property as 'For Sale by Owner' or let a realtor help them. The estate pays the realtor's commissions and closing costs. Because the expenses are paid by the estate it is actually the inheritance money that funds these costs.

When a person dies their last will and testament become a public record. Investors looking to buy homes usually view these public records to locate probated real estate. Usually they can buy such probated property for less than current market value. The decedents' last will and testament provides all the information related to the property along with contact information of the estate administrator. Investors also review decedent wills to get the property address and then get old property records to find out how much is due or owed.

Selling a Property After Probate

Real estate records provide all the information about the financial institution holding lien against the property along with the appraised property value. Creditor and tax liens are attached along with such records letting the investor review and determine how much is owed against the property.

After completing the research and gathering all relevant property information, such investors contact the estate administrator or the probate lawyer to find out if the property is available for sale or not. In majority of cases, the heirs are happy to sell off such probated property below market cost in order to eliminate the estate expenses and get a good liquid inheritance.

Most states now require investors to submit purchase bids on probated real estate through the court. Routing the sale of probated real estate through the court results in investors competing with multiple buyers for the same property. Once the court selects a bid as accepted, the concerned investor must undergo court confirmation and also must complete property transfers usually within 30 to 45 days. Thus if you are looking at buying such a probated real estate then in order to ensure a smooth and hassle free transaction it is best to get a lawyer who has prior experience in transferring probate real estate and knows the various ways of getting things done quickly.

Buying a probated real estate requires a good amount of research and patience to cross check and verify the various public records and documents. However, once you get an accurate picture of such a property's real worth and work out the difference you save on while buying such a property, it really works to your benefit.