Real Estate Investor · Houston, TX · Member since 2015 · 5 posts · 1 vote
I had a house under contract, the contract was signed by power of attorney (daughter of owner).
Now the owner has passed. The daughter is the executor of the deceased owner's will. Is contract still void? Because the owner died? What would be the process in this case?
Attorney · NJ · Member since 2016 · 1k+ posts · 794 votes
9y
Hi Alicia. Depends on a lot of things, including the wording of the power of attorney, and the language in the contract. Most often I see that the power of attorney is still good if the owner was alive and competent to have given the power to the daughter at the time the contract was signed, and the contract is still binding on the estate. That being said, the POA is likely no longer good to actually transfer title, so the sale is probably on hold until the will has gone to probate and letters testamentary are officially issued to the daughter by the probate court authorizing her to sign and act on behalf of the estate. Again, all of that depends entirely on the actual POA and contract wording.
The homeowner died on the day my offer was accepted 9 years ago. In my case the daughter was POA and independent executor so things weren't held up much. We still closed within 2 weeks of the accepted offer. Good luck!
Lender · Greater LA/Orange County area, CA · Member since 2012 · 3k+ posts · 3k+ votes
9y
Most statewide-purchase and sale agreements used by licensed brokers and agents have a provision for death of seller(s).
If you're a wholesaler or new and use a one-page, customized form, your agreement may not have provided for this possibility.
Even if your signed agreement does have such a provision, someone must initiate whatever probate is necessary for the value of the the property as is required in your state. While a summary probate may be possible that cuts through some of the red tape delays, it will still be necessary to hire an attorney to file whatever (basic or formal) probate documents in order that your (estate) seller gas sufficient powers and authority to pass marketable title to you.