When you say the executor has not been finalized, do you mean the personal representative hasn't been named by the court yet? The PR is someone to just sign, transfer, sell, etc. the property to satisfy the debts of the estate and then transfer remaining assets to the beneficiaries. They'll be the party you're working with. If you haven't already, I recommend you gather more facts by pulling a copy of the estate file from probate court. Seeing what else the estate has may benefit you.
I've done this exact same transaction (even R/M in default) many, many times in the past.
Since you need a seller with CPA's (capacity, powers and authority), your title insurance company will list their requirements for your seller.
What we do not know is if your seller must get sale confirmed by court.
If not, your purchase will not require any special due diligence as you are merely buying an asset from the estate, not equity of an heir or beneficiary. Therefore, if your has the equivalent of what we call Full IAEA Power (in California) avoids cumbersome court confirmation.
If court confirmation is required, your offer may be subject to overbidding by competing buyers. That ain't fun if you've used your money for deposit, waited 3-6 weeks for court date only to have Johnny come lately snag your deal.
In my state, CA, the underlying document you would want to review to determine level of powers in referred to as Letters Testamentary. Ask if that's what is used in MN.
Otherwise, treat like any other purchase.
Hi Rick - Yes, we call them Letters here too. They will be in the probate file when he pulls a copy. Hennepin has either a supervised or unsupervised probate. Both have PRs appointed via a Letters, but the supervised requires Court approval each step. Unsupervised, the PR simply files a final accounting when complete. DuWayne will know which type when he gets a copy of the file because it'll say.
Thanks for the feedback- very helpful. I hadn't expected to do a first deal through probate, but we'll see how this develops. There is a probate hearing coming up in a couple of weeks, and I've talked with the attorney handling the case- pretty tight-lipped about any details, but she did confirm that the estate will definitely be selling the property. No big surprise. I'll check on the Letters and see what comes of it.
Thank you again for the feedback.
Free eBook from BiggerPockets!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!