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Real Estate Magic!

Can Someone Illuminate Me? Probate Properties

By: Candice A Donofrio
Sunday, August 17, 2008 1:13 PM

I am just beginning my research and it's Sunday and I'm feeling a bit lazy enjoying the beauty of the day . . . :)

Received a call from a former client on Friday. He wanted to enlist my assistance with an exciting new business he and his wife just completed a course of study for.

They say they are qualified and able to procure properties in probate for their investor clients prior to completion of the probate.

They wanted me to comp the properties and in return, I may get the listings when their investors put them on the market for resale.

I told him that I would research and respond later if I was interested.

My first thought was HAHAHA! WHAT are they taking money to teach people to do nowadays?

I'm suspending judgment however as I am really unaware of how this could work. And new things are always happening. So riddle me this . . .

First thing, if a property is going thru probate, isn't the ownership of the property in flux? So how could a clear transfer take place before the probate is completed?

VanceLawyerGumba? Anyone?

Tell me I'm a dumb blonde who is regressing in intelligence daily. I can take it. After all, I'm in real estate and can withstand sharp blows to my battered ego. :)

Or tell me that, and how, it can be done legally.

Then, tell me how there would be advantage for my company to be involved in this.

And if we were, why on earth involve an unlicensed middleperson?

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Comments

Phil Anderson
Member Since '04

Phil Anderson said:

It is my understanding (That's my "CYA"):  

Depending upon the particular state law and the specific situation, the executor of the estate, with approval from the probate court, can sell the decedent's real estate (along with other personal property).  

I believe one of the main criteria needed is that the property owner died testate (with a will) naming their heirs.  This can help clear the way for the executor/court to make such a decision.

Often, for the decedent's estate to pay all creditors (which is one of the goals of the probate process), cash must be raised, so selling property is needed, creditors paid; Then probate can be closed.

I'd say give it a try, Candice.  Sounds like your friends don't mind calling the grieving heirs, somewhat shortly after the death.  I'll bet FINDING an estate with willing heirs is the hard part.

IMHO :)

August 17, 2008 4:23 PM
Vance Remele
Member Since '04

Vance Remele said:

"Ghouling Executor for Dollars"  (In this case Real Estate)

Oldest trick in the book ,A "non-arm's-length" transaction to take less.

Trick or Treat...

August 18, 2008 1:47 PM
Candice A Donofrio
Member Since '07

Candice A Donofrio said:

Thanks you two! I am gonna talk to legal and find out what they say too.

The thing that left me scratching my head was that this former client said 'they can get the properties purchased fast' and every probate I've ever seen took a long time so the beneficiaries could all be located, etc. 'No no, we know how to do it fast, we went to this class' . . . famous last words.

August 19, 2008 4:04 PM
Phil Anderson
Member Since '04

Phil Anderson said:

I'd think the assigned probate judge would need to be petitioned for approval of any sale.  Might take a week; might take 3 months.

My experience has been at least 2 weeks..  But, I'm sure that can change from state to state.

Let us know how it goes, Candice!!!  :)

August 19, 2008 4:26 PM
Mary DeWitt
Member Since '05

Mary DeWitt said:

I have 2 experiences with probate.

One was making an offer that had to go to probate before a judge because the owner was incompetent to make a decision.  So the probate lawyer gets the offer...Doesn't respond nor do they counter.

It goes before the judge.  It take about 2 weeks or longer to get it on the docket for the judge to make a decision to accept the offer at the hearing. Than thats it....The strange part is how many offers are out there..no opportunity to counter...unless you want to make another offer if the agent will tell you there is another offer on the table.  It basically goes to the highest offer....Now has someone figured out a way to know about all this.....I would think a sellers' agent???????

My buyer did not get the house but the seller who was a dual agent got both sides.  My buyer got a bad taste in his mouth on that one.

Is this like knowing the banks and getting foreclosures...now you know the lawyers that work probate????  I not getting the how too???

2nd experience is a had a listing that went   to probate to clear up the estate.  here again an offer comes in than the court date is set and the judge decides on the disperment of fund and whether the offer will be accepted.  Offer is contingent on probate accepting

the offer after the heirs agree.  There was no will.

My question is has any court judge...countered an offer.

Or is it only a yah or nah?

August 20, 2008 6:38 PM
Cathy  Clark
Member Since '06

Cathy Clark said:

My two experiences with Probate were hindered/delayed not by a court, but by our state (MA) Department of Revenue.  The issue being the value of the ENTIRE estate and whether or not it was subject to an estate tax.  Both required multiple calls to the DOR, long hold times, trips to Probate Court to obtain copies of all documents and two trips to Boston with the records to get a stamp on one form.

And in BOTH cases, all heirs were in agreement!  I shudder to think how much work would have been involved if they didn't.

August 27, 2008 6:46 AM

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Candice A Donofrio
Next Wave Real Estate Investments LLC

Candice A Donofrio
Member Since '07

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