The process of selling a probate home is explained by Kathleen Daniels, Broker-Owner of Probate Real Estate Services and CPRES serving Santa Clara County, California.
The process is part of the legal process to administer an estate and is managed by the probate court.
Selling a Probate Home | The Process
The process of selling a probate home is among the duties of an estate representative. Ideally, the executor or administrator will exercise prudence and hire a CPRES to list the home for sale. A CPRES holds a Certified Probate Real Estate Specialist Designation.
Specialized Knowledge | Selling a Probate Home
While many aspects of selling a probate home may be like a non-probate sale, an estate representative is wise to hire a CPRES. However, not just any real estate agent with a CPRES Designation. Real estate agents are not created equal in terms of their knowledge, training, and experience. We recommend an extensive vetting process before hiring.
The sale of a probate home can start after the court issues Letters Testamentary or Letters of Administration.
Probate Sale
The initial steps CPRES, Kathleen Daniels takes include, but are not limited to, the following:
Start gathering information about the deceased person’s home.
- Examine the preliminary title report. This tells us who holds title to the property.
- If the home is a condominium we need to order the HOA documents. Probate home sales are not exempt from HOA Disclosure Laws.
- Are the HOA payments current?
- Is there a mortgage on the home? If so, is the mortgage current, or in default? Is the mortgage a reverse mortgage?
- Was the lender notified of the death?
- Does the estate have sufficient funds to continue to make the mortgage payments, taxes, insurance, and HOA payments?
All administrative issues, if any, are resolved before listing the property. There are times when we need to work on issues while the property is marketed and listed for sale. This is a matter of timing. We do not want to hold up a closing because we are still resolving issues.
CPRES Selling a Probate Home
There are many tasks and responsibilities in the process of selling a probate home. The list below is not an exhaustive list. It is a general list of tasks completed by CPRES, Kathleen Daniels, Broker-Owner of Probate Real Estate Services.
- Confirm the representative has the Letters Testamentary or Letters of Administration.
- Get a certified copy of the Letters and a certified copy of the death certificate.
- Consult with the Executor or Administrator about the probate process.
- Determine the specific needs of the estate representative. Often they live out of state and require their real estate agent to take care of clearing out the home.
- Review market trends and recent sales.
- Recommend a list price.
- Prepare and sign the listing agreement. Ensure all probate addenda are included.
- Open escrow and order the Preliminary Title Report. In Santa Clara County it is standard and customary for the Seller to choose title and escrow.
- Deliver the certified Letters and death certificate to the escrow officer.
- Examine the Preliminary Title Report to confirm the names on the title and if there are liens or other issues that need to be resolved.
- Resolve issues with the estate representative and the title company, if there are any.
- Inspect the property and complete an Agent Visual Inspection Disclosure.
- Recommend home improvements to maximize the sales price.
- Schedule contractors to complete work, including debris removal and cleaning.
- Oversee repairs, if any.
- Schedule and attend the home inspections
- Complete and sign the disclosures.
- Disclose if anyone died on the property.
- Supervise ongoing maintenance of landscaping, pool maintenance, etc.
- Complete routine checks on the property to ensure its security.
- Implement listing marketing strategies to ensure the property is marketed and syndicated for maximum exposure.
- Provide the Probate Referee with a copy of my market analysis and list price.
- Inform the probate attorney of the sale of the property. Attorneys appreciate working with a real estate agent that keeps the lines of communication open.
- Provide status updates once a week or more.
- Host an open house if that is what the personal representative wants.
- Arrange all showings, as necessary.
- Make the disclosures available to the home buyer’s agent.
- Provide offer writing instructions. This helps buyers agents not familiar with probate home sales and levels the playing field.
- Continue to market the property until the estate representative accepts an offer. Some sales require continuous marketing even after an offer is accepted.
- Respond to all inquiries.
- Negotiate the highest and best offer.
- Vet all buyers before presenting the offers.
- Get signatures on the accepted offer.
- Send the attorney for the estate a copy of the accepted offer.
- Confirm when the estate attorney sends the Notice of Proposed Action.
- Mark the calendar for when all contract deadlines are due. Set a reminder for several days before the due date.
- Provide the escrow officer with a copy of the purchase agreement.
- Notify the Buyer’s agent of the court date to confirm the sale, if applicable.
- Continue to market the property for backup offers.
- Manage the escrow process and ensure all contract duties and obligations are complete.
- Attend court hearings if required.
- Close the Sale!
As a CPRES, Kathleen's mission is to manage the details of the probate sale and get the property sold on the best terms and price. Our goal is to free the estate representative's time so they can focus their time on executor duties and managing their own life. We are here to help.
We are here to help. Give us a call or request a consultation with Kathleen Daniels.
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