Selling a House in Probate New York Guide.
When you hear that a loved one has passed away, the last thing on your mind is the inheritance you could receive and sell. You must consider the difference your loved one’s passing makes in your life, but you also have to confront what you loved one’s death means for the decedent’s estate.
After a little time has passed and you have a chance to become accustomed to your loved one not being here, probate will require that you take part in the process. You may have even been chosen by your relative to be her personal representative because you met the qualification for this purpose. Therefore, you will be involved in taking care of the estate assets, ensuring that the liabilities and all of the creditors are paid, and any other issues that may come up during probate. Maybe, you need to deal with an intestate estate if your loved one failed to do any estate planning while she was alive.
If you and your relatives need to sell your deceased relative’s property, this guide helps you navigate your way through probate and all of its specific procedures.
- Probate Sale Meaning
- Probate Process for Selling Real Estate in New York
- When Can the Executor Sell the Probate Property in New York?
- Can You Sell a House Before Probate Is Complete in New York?
- Do Sellers Need to Go through Probate to Sell an Inherited House in New York?
- New York Probate House Sale Issues
- Options You Can Consider when Selling a Probate House
- Selling the Inherited Property to a Family Member in New York
- Probate House Sale Frequently Asked Questions
Probate Sale Meaning
A probate sale is when a house is sold in probate court. When an estate is sold in this type of sale, it is done after the decedent dies intestate. “Intestate” means that your relative died without creating the traditional means of leaving an inheritance that distributes his property to beneficiaries. This will require that you go through the probate procedure so that your relative’s estate can be sold and distributed amongst the beneficiaries.
After your loved one has passed, her New York house must go through probate so that a probate sale can take place. The administrators of the estate are going to be the sellers of the house, and the proceeds are going to pay the debts that the decedent owes to his creditors. The decedent may have been subject to taxation before she passed away, so the administrator also pays any taxes that need to be paid. After the debts and taxes have been paid, the administrator can distribute the rest of the money to the decedent’s beneficiaries according to the directions in the will.
It is the executor’s job to allocate the assets to the decedent’s beneficiaries in accordance with the instructions in the final document, but the decedent may have failed to draw one up. If a will doesn’t exist, the administrator distributes the assets to the heirs via the estate and probate administration laws in effect in the state of New York.
Probate Process for Selling Real Estate in New York
The probate process requires that you complete the following stages:
Your family member had a personal attorney draw up a traditional document for the purpose of leaving an inheritance that lists all of his wishes after his death. The first stage of probate begins after your family member has passed. This is the case even if he dies without the traditional means of leaving an inheritance. If there is one, it needs to be validated by the probate court. Without one, the court determines the best person to take charge of settling the affairs of the deceased while probate is in effect.
In the second stage of probate, the clerk’s office needs to collect the death certificate and gather the personal brokerage accounts and bank accounts of the decedent. The federal taxes and state taxes also need to be organized. The court may order that an appraiser is appointed for the purpose of appraising the decedent’s estate while it is in probate. The court may need to do this to ensure that the inheritance tax, capital gains tax, or estate tax can be calculated correctly.
The last stage of probate is the process of ensuring that all of the decedent’s beneficiaries or heirs have the opportunity to receive the property that has been designated for them while probate is in effect.
When Can the Executor Sell the Probate Property in New York?
After the court appoints an executor, she and any others become the sellers of the house, and they have the duty of marketing the house to buyers and estate agents. However, the decedent may have left a large amount of debt behind. If so, the court is going to need to approve the written offer that you receive from any potential buyers while the matter is in probate.
Can You Sell a House Before Probate Is Complete in New York?
Yes, sellers can sell a probate property in New York before probate is finalized. The executor deposits the proceeds in a probate escrow account, and the heirs receive them after the executor pays all outstanding debts. Probate is complete after all of this has been done.
Do Sellers Need to Go through Probate to Sell an Inherited House in New York?
Some assets do not need to go through probate before sellers can dispose of them. For example, if you are the surviving spouse of the decedent and you were a co-owner of the property, you don’t need to wait for probate to be completed before selling a house. New York isn’t currently a community property state, so you would need to be a joint owner of the house in cases such as these.
New York Probate House Sale Issues
Not Hiring Competent Professionals to Help with the Estate Sale.
You need a probate attorney to act as your personal representative in the estate sale of the house. A personal realtor is necessary because a realtor has intimate knowledge of the local probate rules and procedures, so she can offer you valuable advice. Of course, you are going to be required to pay the agent a commission and fees, but this one step prevents you from making several fatal mistakes during probate.
Not Allowing the Probate Process to Be Completed.
The time that it takes for probate to be completed can vary, but in New York, it usually takes between seven and nine months. Probate is going to require several steps, so the best thing that you can do is be patient!
Failing to List Real Estate Disclosures Correctly.
According to real estate disclosure laws, sellers must tell buyers the truth about an estate before closing the deal. This means that sellers or real estate agents must give potential buyers written documentation that lists the home’s “material defects.” This further demonstrates the need for sellers to have a realtor represent them during this proceeding.
Options You Can Consider when Selling a Probate House In New York
Listing the Probate Estate with a New York Real Estate Agent
Sellers usually aren’t prepared to deal with another estate, so they are highly motivated to sell the one that they inherited before probate can be completed. This is especially the case if the house needs extensive repairs or still has a mortgage. It may even be in foreclosure while it is in probate, so you must have a personal estate agent help you sell the house. It might be costly, but it can be highly advantageous to you.
It’s not unusual for people to decide to accept money instead of taking possession of the estate that was given to them as an inheritance. They are even willing to lower the sales price just so that they can be rid of the property.
Several people may appear at the New York probate court after learning that there is a probate sale. While they are at the confirmation of sale hearing, they have the chance to bid on the estate, and this could cause the price to go up significantly while probate is in process.
A traditional sale requires you to have an inspection, accept the offer, go through escrow and close the sale. A probate sale with a personal real estate agent requires several additional steps besides the ones listed above.
The extra steps must be taken in court, and it can take a long time. When an estate is in probate, the court needs to be involved in asset transfers, so a sale with a personal estate agent may not be the best thing if you want this matter to be over quickly.
Sellers need to have a personal estate agent, but the other side also needs to have its own representatives. This means that an estate sale will include a large number of people while it is in probate.
Sell An Inherited Property to a Family Member in New York
It’s the easiest for sellers, and if you sell the house to your parents or siblings, for example, you won’t have the responsibility of maintaining the property.
The cash that sellers receive from the estate sale can be used for anything they like. For example, rather than have another house for which they need to wait out the process of probate, you might like to have money that you can use to fix up the house you currently have.
Sellers can use the money from the sale to open a savings account or for the purchase of stocks. Personal investments such as these may bring in more money in the long run than a rental property.
When sellers relieve themselves of their houses, they lose out on the property’s increase in value as time goes by.
When sellers sell right away, they would also be subject to paying capital gains taxes, which can be very costly. That’s because capital gains taxes apply when you sell a house right after you inherit it.
When sellers sell their houses, they won’t be able to rent them out as investment property. Then, you lose out on a passive stream of income.
Sell New York Probate House “As Is” to a Cash Buyer
All you need to do is contact us so that we can examine the property and come up with a fair offer for you. We don’t need to find a formal lender because we pay cash for your New York house, and the house can be in probate when we do this. We even buy mobile homes that have been willed to you! Then, you can accept the offer if it sounds good to you, but if it doesn’t, you aren’t under any obligation to take it, and we won’t charge you any fees.
If your inheritance looks like a cyclone hit it, that doesn’t matter to us. We give everyone a fair offer for their New York houses, and you can leave anything that you don’t want to take. We clean up the place after we buy it, and you don’t have to pay us any fees! You only need to have the title!
The house could need several repairs, but it doesn’t matter how many repairs are necessary. We buy New York houses even if the windows are broken and the roof leaks, and there isn’t any contract needed. Our service provides you with a tremendous amount of value!
New York Probate House Sale Frequently Asked Questions
Can You Sell a House without Going through Probate in New York?
You may be able to sell a house without taking the estate through probate. This is possible when the decedent took the time to place the house into a vehicle other than a traditional document for the purpose of leaving an inheritance. For example, your family member may have placed the house in a personal living trust so that the beneficiaries could avoid probate. This could have been done at the same time that your loved one purchased an insurance policy, and it would mean that the house would be transferred to you without probate. In this case, the trustee makes the transfer from the trust to the beneficiaries without having to involve a judge.
Can You Live in a House during Probate?
If you were living in the house when your relative died, you may remain on the property while probate is ongoing, but you may not be able to live in the house if the court needs to transfer the estate to an heir. It may also need to be sold in order to settle the estate. If so, no one can live on the property because occupancy of the house could prevent it from being sold or transferred while it is in probate.
Can You Empty a House Before Probate in New York?
The deed or title for the house applies to the structure and the land. It doesn’t apply to the contents of the estate, but the contents are part of the estate. Because of this, they are subject to probate and shouldn’t be removed from the house. In the event that there is a small estate affidavit that allows for the distribution of property without probate, the personal assets can be distributed to each descendent more easily, and it is an option even if the decedent performed the traditional estate planning measures.
How Long Does It Take Sellers to Sell a House in Probate?
It can take six to 12 months for sellers to sell a house in probate. That is because the personal administrator must take several steps that are ordered by the court. The court must be involved in the marketing of the estate, the acceptance of bids, and the negotiations. All documents need to be specialized, and all deadlines need to be met to keep probate on schedule. It’s allowable to show the house while you are waiting for the Grant of Probate to be granted.
Do All Heirs Need to Agree to Sell Inherited Property?
No, all heirs don’t have to agree to sell an inherited estate. The administrator has the responsibility of paying all of the decedent’s debts, so if debts need to be paid, the administrator can decide to sell the estate for this purpose. The best practice is to obtain your agreement before putting the house on the market, but the administrator doesn’t have to prevent the sale of a house because you don’t agree. Some heirs in this situation have sued their administrators over just this type of inheritance issue, but it ended up being extremely costly for them.
The Easiest Way to Sell a House in Probate
If you have more questions about probate or would like more information on how to sell your estate in probate, contact Helping Homes REI, LLC. They are real professionals in the real estate industry and offer a great deal of value to sellers in the community. These findings on the probate procedure apply to all cities in New York, including New York City, Syracuse, Buffalo, Yonkers, Rochester, and more!