Sales of real estate during a probate are a great opportunity for real estate licensees. However, there are additional requirements the licensee should be aware of in probate sales.
Be Bold and Adventurous.
Just because you’ve never sold a home in probate is no reason to forgo the opportunity. We spend the necessary time to explain the requirements of probate sales to agents to ensure the following proceeds go as smoothly as possible. Once agents complete their first probate sale, they usually realize how easy the process can be. Here’s a couple of tips if you are contemplating jumping into this lucrative area:
Court approval is required.
NRS 148.260 provides that a sale of real property at a private sale must not be confirmed by the court unless the court is satisfied that the sum offered represents the fair market value of the property sold and the real property has been appraised within 1 year before the time of sale. If the property has not been appraised, a new appraisement must be performed, as in the case of an original appraisement of an estate, at any time before the sale or confirmation of the property. The court must be satisfied that the property is being sold for fair market value. Accordingly, the probate attorney will file a petition to confirm the sale which will include a copy of the appraisal.
Discrepancies between the purchase price and the appraisal.
There are many situations where there is a discrepancy between the value determined by the appraisal and the proposed sale price. The statute does not specifically address this question; however, my experience over the last 30 years is that small discrepancies are not a problem. However, if the appraisal were to reflect a significantly higher value, then the attorney should address this issue in the petition to confirm the sale.
There are numerous ways to address a discrepancy. While the appraisal reflects an estimate of actual value, it is not necessarily the market value of what a ready, willing and able buyer is willing to pay. Location of the home, the number of bedrooms, the area of town, etc. are factors which can address discrepancies. In addition, the appraisal may simply not take into account the actual condition of the home. For example, the home may need repainting, new floor and window coverings, significant landscaping, or pool repair. In the event of a discrepancy, consider arranging for a contractor to provide an estimate to address any necessary improvements. The probate attorney should also include in the petition to confirm the sale information from you about the efforts to market the property, number of open houses conducted, price reductions, number of offers, advertisements, etc. to document for the court the time invested to obtain the fair market value.
If you are interested in learning more about the lucrative area of probate sales contact an experienced probate Attorney today.
For more than 30 years, Attorney Lee A. Drizin has practiced in the areas of estate planning, probate, trusts, guardianship, and real estate matters representing clients throughout the state of Nevada.
Drizin Law is providing this information for educational purposes only. It should not be construed as legal advice or a legal opinion as to any specific facts or circumstances. This information is based on general principles of Nevada law at the time it was created and you should be aware laws frequently change. Moreover, the laws affecting you may differ depending on the circumstances. You should consult with a qualified attorney in your own state or jurisdiction concerning your particular situation. Review of this information does not create an attorney-client relationship.