When a loved one passes, the grief and stress of the situation can be overwhelming. This is especially true when you’re one of the primary heirs, and/or expected to be the executor of the estate (also called the personal representative). There’s a good chance you won’t know what to do, and that’s okay.
In Oregon most estates have to be disposed of through probate. Probate is the process in which a court oversees the disbursement of a deceased person’s assets. Probate takes a minimum of four months, and it can take much longer if there are complications such as a contested will, or a sale of real property.
Probate can entail some expenses (even aside from legal fees), and there are some deadlines that must be met. Missing a deadline issued by the court can make it even most costly, so avoid making the mistake of skipping any of the legal requirements which can further tie up the estate. Even though it may seem expensive to hire an attorney, it could end up saving money in the long run, and will probably be a very small percentage of the value of the estate.
You’ll need to be patient as the assets of the deceased are analyzed and the rightful inheritors of the estate are determined. Executors may need to liquidate the real estate, leading to the probate court distributing the funds evenly among those beneficiaries.
If you’ve recently lost a loved one, or if you’re thinking about your family member’s estate planning, this article will help you understand how to sell a probate property in Prineville or anywhere in Central Oregon.
Keep in mind I am not an attorney, and nothing in this article should be considered legal advice. Information that is accurate at the time I’m writing this may be different by the time you’re reading it, so it is always best to consult an attorney to make sure you are meeting all of the legal requirements for selling your probate property in Central Oregon.
Petition
Before probate can start, someone that is a “party in interest” must petition the court for probate. This is generally the person assumed to be the executor, but it can be anyone who has an interest in an estate, including creditors.
Certified Appraiser
Oregon law (ORS 113.185) does not require an appraisal for real estate, but the court has the discretion to require it. If the estate is to be divided among multiple heirs, it is very likely that an appraisal will be required. Your first step will be to locate an independent certified appraiser. Appraisers are reviewed online on Yelp and other websites, just like any other business. You can either find one online or by word of mouth among probate property real estate professionals in Central Oregon.
Offer the Property
For sale, with conditions! If the property is specifically listed in the will, you’ll need the court’s approval to sell it unless the will specifically authorizes you to sell it (ORS 114.325) Now that you can finally take action and sell your Central Oregon probate property, you’ll want to make certain to disclose to your potential buyer that the court’s confirmation of the transaction is required before you can accept, making the offer conditional. This also applies if you intend on leasing the property as well.
The personal representative is exempt from seller disclosures, but if there are any problems with the property you are aware of, you should still disclose them to any potential buyers.
Court Confirmation
Commonly, once you’ve petitioned the court for a hearing to confirm your sale, you can expect delays on the court calendars ranging from between 20 to 40 days, from the filing date.
Deposit
Plan to collect a 10 percent deposit from the buyer at this time, which is based on the purchase price.
Advertise
Because the ultimate goal of the sale of a probate property in Central Oregon is to garner the highest amount possible for the estate, you must advertise your court hearing to the general public for a process known as open bidding. This allows any additional interested parties to participate in the purchase of the real estate, aiding in raising the final purchase price.
Court Hearing
Now you’ll need to attend the court hearing and wait until the unconditional bidding has concluded and a cashier’s check is presented for the final figure. Your buyer will be able to participate along with any member of the public who so chooses, bids increase by $500 at a time.
Refunding the Deposit
Should a new buyer overbid your buyer during the court proceedings, be prepared to refund their 10 percent deposit. Otherwise, should your original buyer maintain the highest bid, the funds you previously collected from them would be applied to the purchase.
Closing
Finally, you can close on the contract for your probate property in Central Oregon. Be certain that the costs of the property are covered by the financing. You’ll also be responsible for placing the full amount into the estate fund.
We’re here to assist you during this difficult time and make the process easy. Call Deschutes Home Buyers today at 503-383-1686 or send us a message to sell a probate property in Central Oregon or Eastern Oregon.