If the executor/administrator is given “limited” authority to sell the real estate, the sale is supervised more closely by the court.
You can count on Jordan Bennett for expert guidance in all phases of the sale, from the initial offer to court confirmation and overbidding, to get the most amount of money for the property.
In an earlier post, we touched on the probate process. To recap, this is the court-supervised process of winding down the earthly affairs of the deceased. The person tasked with liquidating assets (including real estate) is the Personal Representative, also known as the executor or administrator. In the court’s discretion, the Personal Representative can be given full or limited authority.
The PR must establish a list price for the estate property. If he or she has been granted “limited authority”, they must consider the appraised value of the property, which is set by a court-appointed referee. The eventual sale of the real estate must be at least 90% of the appraised value determined by the referee.
Once an offer is secured, a Notice of Proposed Action is sent to all of the heirs entitled to the proceeds of the sale. Barring any court instructions to the contrary, notice of the sale has to be published in a local newspaper. After this 15-day window, if there are no objections by the heirs, the sale can move forward without a court hearing.
The attorney that represents the estate will then apply for a “confirmation hearing” to get the Court’s blessing for the sale of the property. This court date is normally scheduled 30-45 days of the application date. The application is distributed to all stakeholders in the sale.
Even after the confirmation hearing has been put on the calendar, Jordan Bennett will continue to show the estate property and use an aggressive marketing plan to attract buyers, in the hope to find “over-bidders” that will push the price upwards.
When it comes time to go to the court confirmation hearing, the accepted offer can be overbid by another buyer. If there are overbidding buyers that appear at the 11th hour, they must show up with a cashier’s check to make them a legitimate buyer.
If the hearing pulls in more than one overbidder, the highest bid wins. The victorious bidder hands a cashier’s check to the Personal Representative and escrow starts. Escrow closes 30-45 days from the hearing.