Transferring title to real estate in a probate.
2 How Do I Sell Real Estate During Probate?
4 Can I Sell the House of a Deceased Person as the Executor Without Going Through Probate?
The probate process requires the estate's executor to file the right documents with the courts before liquidating or transferring any assets to heirs. If a home is part of the probate process, the executor will need to address any lingering mortgage debt, liens and all other estate debts before the property's title can get transferred.
Before the executor is able to release even a dime from a bank account, all assets and debts must be collected and addressed. The entire process is overseen by a probate court judge. The executor files a petition with the probate court that names the executor, the person who died and any heirs to the estate. It also states the size of the estate, if known.
As an example, assume that a woman passed away owning a home in San Francisco. At the time of her death, the home's value is $950,000 with a remaining mortgage of $650,000. She has $400,000 in other assets including savings and investments. Her estate is estimated at $700,000 in total assets.
From there, the administrative phase inventories all assets that include personal belongings, real property, bank accounts and any other investments. Debts such as taxes, mortgages and car loans need to be paid before the judge will approve the release of the assets. If the home is the only asset left to pay the mortgage, it may need to be sold under the supervision of the courts to satisfy the debts.
In the example above, the $650,000 debt needs to be satisfied before the title can be transferred to heirs. If the house is sold, the transfer process happens with court approval and the new homeowners get the title recorded in their name rather than the heirs.
Title is transferred by recording the new title with the county recorder's office. In San Francisco, this requires a title deed or a grant deed that is filed with the City and County of San Francisco's Office of the Assessor-Recorder. A title deed is adequate if no money is being exchanged with property going to the heirs. A grant deed is required if the home was sold.
Either deed needs to be signed and notarized. In San Francisco, you also need to file a Preliminary Change of Ownership Report with the deed. Along with this paperwork and the filing fees, probate transfers will require a certified original death certificate. If children are receiving the title to the property, the transfer may also be exempt from reassessing the property value for property tax purposes.
Leonard, Kimberlee. "How Is a Title to Real Property Transferred in Probate?" Home Guides | SF Gate, http://homeguides.sfgate.com/title-real-property-transferred-probate-81240.html. 29 June 2018.