Buying probate property is very different from buying traditional real estate. Probate properties typically belong to a deceased person’s estate and tend to be sold for less than market value. Since probate property is considered an asset, it must go through probate court along with other items left behind by the decedent.
While any asset from an estate (like collectibles, cars, or jewelry) can be sold, “buying probate assets” usually refers to real property. The main responsibility of an estate’s personal representative is preserving the assets in the estate, so they may be properly distributed to beneficiaries. So, probate assets are often sold as a necessity to pay off debts.
- Probate property is often sold at a budget-friendly price, but the process can take several months
- You can go to your local courthouse to access probate property information in your area
- Probate homes are often listed “as is,” meaning that the estate won’t pay for any repairs to the property
- In some cases, speaking with a probate attorney can be helpful when you’re in the process of purchasing probate property
Buying Probate Property in Arizona
Real estate property is sold in probate court when a person dies intestate (without a legally valid will). In this case, the state will take over and administer sale of the property (often with pre-approval for sale). If the property is pre-approved, the buying process can be quick. In other cases, it can take a long time to finalize a probate property purchase.
Buyers are often tempted by the affordable prices of probate homes, but keep in mind that they’re usually sold “as is with no repairs.” In other words, the estate will have no interest in renovating the property. For this reason, it’s smart to get an appraisal and home inspection before buying probate real estate, as you would before purchasing any other property.
How Long does Buying Probate Property Take?
If the home you are seeking to buy doesn’t have pre-court approval for purchase, you might have to wait a while to complete the sale. Once the estate representative (also called an executor) accepts your offer, the court must approve the sale, which can take a month or more. In some cases, buying probated real estate can take several months.
How to Purchase Probate Real Estate
Probate real estate property can be a great bargain for potential homeowners or investors. Since the property is often sold as it is without improvements, many choose to purchase the property to fix up or sell for a profit. When the court sells a property, it’s sold like an auction. The court in your area might have properties listed on its website. If you’re approved to purchase the home, you’ll typically be required to pay with a check or cash.
Once you identify the professionals involved with the estate, such as probate attorneys, develop relationships with them. That way, they will keep you in mind for the sale and know how to contact you. While there are private services available that offer information on probate property, they are often unreliable. You will be better off researching on your own or contacting a probate attorney for assistance.
How Working With an Attorney Can Help
Houses in probate are worth considering if you’re looking for a good deal on your next home. However, it’s important to know what you’re getting into before you start. Probate law can get confusing, especially when you’re dealing with a complex or large estate. Speaking with a probate attorney can help you if you’re on the fence about whether pursuing probate property is the right option for you. They can also help if you need assistance with selling probate real estate.
If the will validity is contested or a dispute exists over the personal representative appointed for the estate, formal probate proceedings are necessary. The formal process involves the court stepping in to resolve estate-related legal issues. Lastly, some estates will have to go through supervised probate, where the court oversees the entire process. This can extend the length of the probate proceedings considerably.
What to Do if You Need Help With Probate in Arizona
The law concerning estate distribution and probate property can be confusing. If you have any questions about buying or selling probate property in Arizona, speak with a probate attorney today.