Specialist · Paradise Valley, AZ · Member since 2018 · 3k+ posts · 2k+ votes
How To Clear Title After Probate 5 Heirs - 2 Heirs Have Liens (Unpaid Child Support)
I bought an un-probated property Subject To. Naturally I had a title report pulled and it was clean. I gave the heirs some good faith money contingent on them clearing probate which they nearly had completed anyway.
Once probate cleared we pulled title again and turns out two of the five heirs are bad boys and haven’t paid their child support and it turns up on title. Everyone involved and the property are in Arizona.
I am assuming from what I’ve read that the inheritance gets split 5 ways (there are 5 heirs). So purchase price of $169,000 minus mortgage $160,000 minus seller closing costs $1500 leaves $7500 divided by 5 heirs and is $1500 each. So, each of the two heirs amount should go directly to the state.
I haven’t run into this issue before so I’m interested in knowing how it would be resolved. I’ve called 4 attorneys who do probate but it is too small of an issue for any of them to take an interest.
Attorney and Real Estate Broker · Madison, WI · Member since 2016 · 265 posts · 100 votes
6y
Real estate titling and probate are two areas of law that are very specific to the state. So it is unlikely anyone from out of state will have a definitive answer for you on this matter which touches on both! However I think you are generally right. Most of the premise of probate and title is that liens get paid first when probate property is sold (after the attorney and court, etc) then the remainder is the "inheritance". So you would buy a property and it should be free and clear for you. How the proceeds satisfy the liens and flow to heirs should not affect you much.
Broker · Phoenix, AZ · Member since 2015 · 151 posts · 55 votes
6y
If you're not having any luck with attorneys, you might try Legal Smart. They're my go to when can't find the answers I'm looking for in the legal realm. They should be able to help you out, and possibly help the family sort out the documentation as well on clearing the two clouds on title. azlegalsmart.com