Probate is a term that refers to the method by which your estate is administered and processed through the legal system after you die. The probate process helps transfer the estate of the deceased in an orderly and supervised manner. The probate process guides the transfer of the estate in an orderly way that adheres to the rules.
In a probate sale the process is similar to a regular sale but with more procedures taken care of before escrow closes. In a probate sale, the court needs to be petitioned for the sale to be approved and a court appraiser needs to place a value on the probate real estate for tax purpose’s and fee’s. A Notice of Proposed Action may need to be sent to the heirs with an interest in the home and Letters of Testamentary may be required for the Executor to sign the grant deed in the deceased name to the new buyer with title insuring.
There are more requirements for a probate sale to close and if any of the required actions are not completed, the sale will not close. In many states, even after the buyer has completed all the steps of a probate sale, the buyer can still lose the home to an over bidder at the Confirmation of Sale hearing. The Confirmation of Sale hearing takes place 6-8 weeks after the seller (executor) has accepted the offer.