Sell Your House Before Probate: Steps and Considerations
Jun 25, 2024
“Understand the probate process and key considerations to sell a house before probate”
Generally, you need legal permission called "probate" from a competent court to sell a deceased person's property. Selling a house before a grant for probate is difficult but not impossible as there are some exceptions. If you are the joint house owner, you can legally sell your house without asking for probate permission as the entire property gets transferred to you upon the death of a co-owner. In another scenario, if the property is held in a trust, the trustees are free to sell the property without seeking legal permission. In this blog post, you will learn about the process and considerations for selling a house before probate.
Understanding the Probate Process
Understanding the probate process is essential to determine whether you can sell a house before a probate grant. Generally, when a house owner dies, the property gets frozen until the probate process is completed. The probate process involves determining the deceased property value and paying debts or taxes owed by the deceased person. This ensures the property gets distributed equally among the legal heirs. During this process, the property can’t be sold without seeking probate permission. So, from a practical perspective selling a property before probate is difficult and buyers are usually hesitant to buy a house during a probate process.
Selling a Probate House as a Joint Owner
Laws of survivorship state that a co-owner of a deceased person's home or other assets may sell it without the need for the probate to provide authorisation. Owning a joint property means you have an equal share in the property and if another partner passes away, his/her share in the property will automatically transfer to a surviving partner. Therefore, you as a surviving partner have the legal authority to sell the house without waiting for the grant of probate.
Selling a Probate House Held By a Trust
Properties registered in the name of a trust are also owned by the particular trust rather than an individual. The trustees of the particular trust have the authority to sell the property before probate is granted. However, it is essential to complete all formalities about specific trust agreements and other legal requirements before selling a property registered in the name of a trust. Considering tax implications and seeking professional advice is also suggested when selling a house owned by a trust.
Probate and Marketing a House
You can market a house for sale before getting the grant of probate. You don’t have any legal binding for marketing a house during the probate process. However, you have to mention in your marketing description that the house is subject to probate and the sale will close only after the grant of probate is obtained. Disclosing the probate status of a house is essential to make buyers understand the current legal status of the property and also helps to avoid any misunderstandings. You can navigate to Estate Agent Power to create an online listing for your house and market it before a global audience. The real estate platform empowers you to add a description to the listing. You can mention the probate status of your house in the description to disclose the legal status of your property.
In conclusion, selling a house before probate is difficult as it is a legal obligation to obtain a grant of probate before selling a deceased person's property. Joint owners and properties registered in the name of a trust are the exceptions that don’t require probate permission. Furthermore, you can market a probate property for sale but disclosing the probate status is essential to make buyers understand the legal status of the property.
