I have a property under contract where the sellers are heirs to a property.
The owners of record are the deceased parents and there are no other heirs.
The contract was recorded (I have equitable interest) and I'm working with a title company to create an estate and make it so the sellers can transfer title to my potential cash buyer.
In this case, with the sellers not actually on title, how do I go about marketing for cash buyers in a way that the buyers do not go around me, as the wholesaler? Thanks!
First, you don't "create an estate". I assume you mean open probate, which you don't have the power to do. If the "heirs" haven't opened probate, they likely have no legal power/rights over the property yet, so any contract they signed with you is probably unenforceable. Find a local probate attorney, which the heirs will need anyway.
Your purchase agreement to buy the property is illusory if the heirs aren't already on title and/or if there is no executor or administrator with powers to sign a purchase agreement. You can contract to buy their interest in the estate, but I'm guessing you just got a purchase agreement for the property from people who don't own it? You won't be assigning that purchase agreement.
Figure out what needs to happen for the property to transfer from the estate to the heirs or you. Unless IL has special transfer laws I'm not aware of, there will likely need to be probate action in the courts. Your title company likely can't help you with that. After you know more about the title situation, you can strategize about the legal work and cost and how best to control the deal.
Here's a $10 word that will easily cost twelve bucks by the time Chicago's favorite Son is out of Presidential office: consanguinity.
Presuming the decedent died intestate, absent a will, most States laws of inheritance rely on the laws of consanguinity to determine the lineal heirs or issues (children's children). What you have is the parents' expectancy of an inheritance who signed a document that you placed in front of them and managed to get recorded. Hardly something that I can imagine wholesaling.
Since you don't have the power to close due to the current inability of your "sellers" to pass marketable (insurable) title, you've ability to tie up the deal is pretty limited. All you've got is wild contract, not even an out-of-chain deed, which many title companies would either ignore or bind around. This hardly clouds title.
It is possible to tie up and eventually close a pre-probate deal, but not the way that you're going about it. Sorry, I don't give away proprietary techniques on free forums.
Wow! Thank you @Wayne Brooks , Kristine Marie Poe
for a great reality check!
I was clearly out of my league on this one.
I contacted a local attorney who is going to help navigate the probate issue.
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