Deceased Estate And Its Sale—Top Things To Know
Updated: Oct 3
Deceased estates are not new but these have become newly popular. Thanks to the immense interest such properties are attracting from buyers across the globe, it is important to stay clued in on what these actually are.
it is becoming commonplace for individuals to purchase assets that are part of a deceased estate. When you deal with any deceased estate, it is essential that you must ensure the necessary procedures are followed. This is significant given that it helps to avoid confusion or complication that might lead to loss of money or even delays in the transfer of such property.
To begin with, a major step is to ensure that the deceased estate in question is registered. This paves way for you to be dealing with an executioner who is duly appointed and not just some beneficiary of this estate. It is important that the party/parties verify the appointment of the executor first. This is because any agreement for sale that you enter into with anybody other than the executor, is void. Only an executor represents the deceased estate as per the governing laws of the region.
In few cases, it is often seen that beneficiaries take it on themselves as far as sale of estate assets is concerned, sans knowledge of an executor. Some parties even purport being the appointed executor. This is something you need to work upon to a point that if you are an executor being a beneficiary, you need to have the right legal documents to prove the same.
What Are The Types Of Deceased Estate Sales?
There are three common deceased estate sales types.
The most popular sale type is that of selling by executors or the beneficiaries of a deceased individual. The executor is a person who has been appointed by a deceased previously for dealing with personal affairs. These executives might even have very specific instructions and they can deploy the power of attorney vested in them to sell estates or assets of a deceased. Sales might occur via private deals but mostly these occur via auctions. The latter are a more transparent way to ensure that the deceased asset sale has been fair.
Another type or category in deceased estate sales is ‘mortgagee in possession’. In this context, there is some money owed on deceased property and a bank exercises the right for selling in order to recoup the money. The sale can be made via private treaty or via an auction. In this case, the bank is only looking at selling at a fair market price. Here there’s no attachment on behalf of a seller. Such a sale of deceased estate could offer an opportunity for purchasing at a very good price, in case the property is already on the radar for a fair bit of time.
One last type of deceased estate sale is the sale by Public Trustee. Here, no mortgage exists on the property. The deceased does not have beneficiaries either. Public trustees can sell the property at an auction but any prior offers are not acceptable.
With the types of deceased property sales now clear, you can choose to take a decision around the same finally! Good luck!