How to buy a house in probate: A step-by-step guide
At Zimmer and Rens LLC, we assist Wisconsin residents in managing real estate transactions, including those that are owned by an estate or deceased individual. Let’s dive into the steps involved.
What is probate?
Before diving into the process, it’s important to understand probate. In simple terms, probate is the legal process that takes place after someone passes away. During this process, the decedent’s assets – including real estate – are distributed according to the will, or if there is no will, according to state laws.
Key players in probate
- Personal Representative: The individual appointed to manage the estate.
- Probate Court: Oversees the probate process and determines if a formal or informal administration is required.
- Beneficiaries and Heirs: The individuals or entities designated to receive assets from the estate.
Steps to buying a house in probate
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Understand the market
Before making an offer, research the local real estate market to understand the value of similar properties. This will help you make a competitive and fair offer when the time comes.
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Work with a probate specialist
Engage a real estate agent or attorney experienced in probate sales. Their knowledge of the legal intricacies can help ensure compliance with regulations and streamline the process.
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Make an offer
Once you’ve found a property, submit an offer to purchase. Keep in mind that probate sales often cannot proceed until the signed domiciliary letters are received by the personal representative. Patience is key, as the court will take steps to ensure the property is sold at fair market value.
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Review signed domiciliary letters
Ensure that the personal representative has received signed domiciliary letters from the applicable estate. This document confirms that the sale is binding and identifies the individual with court approval to manage the estate’s assets.
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Complete the sale
Once the court approves the sale, proceed with the usual real estate transaction steps, including inspections, financing, and closing.
Final thoughts
Purchasing a house in probate may seem complex, but with the right approach and professional guidance, it can be a rewarding endeavor.
If you need representation for buying, selling, or investing in real estate, you can schedule a 30-minute call with a real estate attorney of our firm, and we’ll analyze your situation to provide a clear plan on how to protect your transaction and avoid liability.
At Zimmer & Rens LLC, we’re more than just attorneys – we’re your legal partners, committed to helping you succeed.
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