If you own a property, that is stuck in the courts, it can feel frustrating and overwhelming. All of your hard work handling everything should pay off in one way or another, right? In our latest post, we will help you learn how to sell a probate property in Reno!
The probate process is very stressful. Selling a house on top of everything else can only add to the frustration. At Envy Property Solutions, LLC we can help you with a fair and quick sale of your probate property in the Reno area. Keep reading to learn more about our best tips for selling quickly.
What Is Probate?
Probate occurs when a loved one dies and their heirs receive property listed in a will and the debts of the deceased estate are paid off. If you have to deal with the probate process, it is best to deal with a probate attorney as the process moves through the courts. They will be able to provide you with advice, help you handle debt payments, tax situations, and guide you through an often stressful process. You will need to take an inventory of the estate’s assets and locate all estate planning documents. You will want to notify all creditors and pay off any outstanding debts with money from the estate. There will also need to be income taxes filed, which include a possible inheritance tax, luckily for Nevada, there isn’t any inheritance tax or estate tax. Depending on the situation and if there is a will present, the process can take 6 months to over two years just to settle the estate.
Why Would A Probate Home Need To Be Sold?
When a person dies and there are outstanding expenses owed or ongoing expenses such as a mortgage payment (or reverse mortgage), the estate may not have enough income to pay these debts off completely. The executor of the estate may be forced to sell the property in order to avoid foreclosure. If the house is not required to be sold by the court, you will need to wait until the probate process is completed before attempting to sell the house. However, you can plan ahead by speaking to one of our team members and giving them the property basics. We will be able to provide you with a tentative offer, so you can know what to expect once your house has cleared the probate process.
How It Works
Even if the property was not left to an heir, the executor of the estate will be tasked with handling the sale of the home. The court will issue “Letters of Testamentary”, this will give the executor legal authority to act on behalf of the estate. If the property must be sold through the probate process, it will be necessary to undertake the more expensive “Summary Administration” procedure rather than a “Set Aside Without Administration” process (this is only relevant if the estate is valued less than $100,000). The interested buyer will have to submit a written offer along with a deposit to the court for their approval. Once the court approves the offer, there be an opportunity to have the property inspected before the sale of the home is finalized. Once this process is completed, escrow will be able to close within only a couple of weeks.
On the other hand, if the property does not need to be sold through the court, the process much simpler and faster. The executor of the estate can reach out to a buyer directly or contact a real estate agent to sell the home. That buyer submits an offer (and puts up an earnest money deposit at the title company). Once the title company does their magic (making sure all the documents are correct), the home will sell to the buyer within a couple of weeks or by the closing date that was agreed upon. The proceeds of the sale are used to pay any outstanding debts, with the remaining balances going to the heirs as outlined in the will.
Make Sure Everyone Is Onboard
If there are multiple heirs, this can be the trickiest part, but it is important to make sure everyone is all on the same page. While the executor of the estate has the authority to list and sell the property, it is best to get everyone in agreement ahead of time. You don’t want to have anyone contest the sale or create problems within a family at the very last moment if you can avoid it.