Probate properties are available at a low price than any normal property of a similar kind. This is the reason that they prove to be a great investment opportunity for many. The laws for these properties are different in different countries. One needs to thoroughly understand the laws relating to the country in which he is planning to make such an investment.
What happens in the Probate sale?
Where a person dies and does not leave any will that would entitle someone to his properties, the court will be selling such properties under a specific law. The law under which this type of sale takes place is a probate law and the sale of such property is a probate sale.
Even if the deceased person left a will but does not leave any heir to his property, the executor of the will has to dispose of the property. Such sale will again take under the probate laws. However, the procedures for disposing of the properties in both the above cases differ.
Difference between probate sale and normal sale
Just like any regular sale, this sale requires authorizing a real estate agent for listing the property for sale. However, unlike a regular sale, the court keeps a close watch on the proceedings of the sale in this case.
Apart from this, there are other unique features of this sale. The court sets a listing price for the property. This is done after consulting the real estate agent and the representatives of the property. Thereafter, persons interested in buying the property may make an offer by depositing a certain amount as a down payment. The representatives of the estate may accept the highest offer. The court then fixes a date for a confirmation hearing where the sale is finalized by the court. This entire process is not present in the normal sale of a property.
Probate sale where a will was created
Where the deceased person leaves a will, it is the executor who is responsible for disposing of the property. In such as case, he files the will with the probate court within the time limit specified by the law. Thereafter, the court initiates the probate process. In this process, the court verifies the authenticity of the will. After that, the court legally authorizes the executor to dispose of the property by acting on behalf of the deceased.
Probate sale where no will was created
Where no will was created by the deceased person before his death, there is no executor to dispose of the estate. In such a case, the court takes upon this responsibility. The same procedure is also applied where a will was created but could not be proved to be a valid one in the court.
Here, the court appoints an administrator in place of the executor. Such an administrator will be responsible for paying the debts and accepting claims by disposing of the property.
How to search for such properties?
Investing in these properties is an intelligent option. However, finding Probate homes for sale is difficult, especially when you are looking for them on your own. It is wise to find out local real estate agents for this purpose. They are professionals who keep a track of all the properties for sale under probate laws. They also make use of multiple listing services to keep knowledge about all such properties.
The executors are responsible for marketing the sale of property in the best way possible. Thus, they list the sale in newspapers. You can look for advertisements regarding probate homes for sale in such newspapers. Alternatively, you can find the records of active probate cases from the court. In case you find any such property, you may contact the executor for further details.
There may be cases where a deceased person has properties in more than one country. Where you are buying properties located in some other country, you will have to deal with the probate laws relating to such country.
In such a case, a consultancy with the lawyer of that country or with an international probate lawyer would be of very much importance.
Considering the legal complications involved in a probate sale, these properties appear to be a difficult investment option. However, if one follows the correct approach and takes the help of professionals wherever required, such investments can be very fruitful.