A frequently asked question among those navigating the complexities of estate management is, “Can a house be sold while it is in probate in Lehigh Valley PA?”
The straightforward answer is a resounding “Yes.” However, this process is not as simple as it might sound; it requires strict adherence to your state’s specific laws and regulations governing probate sales. The probate court oversees each step and detail involved in the sale, and if you are serving as the executor, you will also need to review and approve all sale terms. Although this process may seem daunting, a clear understanding can significantly simplify the experience.
Can A House Be Sold While In Probate In Lehigh Valley PA?
Appointment of Administrator/Executor
The first step in the probate process involves determining who will manage the estate. If the decedent’s will specifies an executor and that individual is willing to fulfill the role, they will be formally appointed as the executor. Conversely, if no executor is named in the will, the court, in conjunction with other family members, will appoint a close relative to serve as the administrator of the estate.
Property Appraisal
Once the administrator or executor is appointed, the next crucial step is to arrange for a professional appraisal of the property. It is essential to engage a licensed and reputable appraiser to ensure an accurate valuation. In most cases, the property must be sold for at least 90% of its appraised value, making it imperative to select an appraiser who will provide a precise estimate.
Sale of the Property
This stage is where the process of selling a house while in probate begins to take shape. To initiate the sale, your real estate agent should list the property on the multiple listing service (MLS), making it publicly known that the house is being sold as part of a probate estate.
Once a potential buyer expresses interest, they will submit an offer that includes a 10% deposit. You have the option to either accept or reject this offer. Should you choose to accept it, the offer then becomes subject to court confirmation. This means that your probate attorney must submit the offer to the court for its approval. If the court and all parties involved agree, a date will be set for the finalization of the sale.
After the court confirms the accepted offer, a Notice of Proposed Action must be mailed to all heirs. This document outlines all terms and conditions associated with the proposed sale. The heirs are then given a 15-day period to review the notice and raise any objections they might have. If no objections are submitted, the sale can proceed without requiring a court hearing.
Overbidding Scenario
This is where the process can become a bit more intricate. Before the court officially approves the original buyer’s offer, the judge will ask anyone present in the courtroom if they would like to submit a higher bid for the property. If no one is interested in making an overbid, the sale can proceed as planned.
However, if an overbid occurs, the original buyer’s 10% deposit must be returned to them before the new sale can advance at the higher bid price. When the overbid is accepted, the new buyer is required to provide a 10% deposit, which must be in the form of a cashier’s check. This check will be presented to the executor or administrator during the acceptance hearing.
Upon receiving court confirmation and approval, a contract can then be executed. It is important to note that this is a specialized sale contract that cannot include any contingencies, and the escrow process typically closes soon after the hearing—usually within a 15-day timeframe.
As evident from the details outlined above, the rules surrounding the sale of a house while in probate can be quite complex. Therefore, it is highly advisable to consult with an attorney who specializes in probate matters for more tailored guidance and assistance throughout this process. Understanding the ins and outs of probate sales can help you navigate this challenging landscape more effectively.