Are you interested in selling a house in probate in Virginia? As you know, probate is the legal process of reassigning property to beneficiaries after someone passes away. This procedure can occur whether the deceased left a will (testate) or did not leave a will (intestate). The probate court oversees this extensive process to ensure the property is distributed correctly. In this quick guide we will lay out the steps of selling a house in probate in Virginia.
Selling a House in Probate in Virginia
A common question is, “Can a house be sold while in probate in Virginia?” The answer is yes, provided certain steps are followed. As real estate investors in Virginia, Onyx Probate Services recommends the following steps for sellers and advises other investors to familiarize themselves with these procedures when purchasing probate properties in Virginia.
6 Steps of Selling a House in Probate in Virginia
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- Property Appraisal: In Virginia, a property appraisal is generally required for a house in probate. To get an appraisal, you typically need to hire a certified real estate appraiser. The court will consider this appraisal when overseeing the sale or distribution of the property. The appraisal helps determine the fair market value of the property, which is necessary for several reasons:
- Estate Valuation: The appraisal provides an accurate value of the estate’s assets, which is essential for the probate process.
- Tax Purposes: Accurate property valuation is needed for calculating any estate or inheritance taxes that may be owed.
- Equitable Distribution: It ensures that all beneficiaries receive a fair share of the estate based on the property’s market value.
- Obtain the Petition: To sell a property in probate, you must obtain a petition from the court. Fill out the petition form with all necessary details about the sale, including the method of sale. Submit this form, along with the independent appraisal, for court approval. We ensure that any property we consider has completed this petition process.
- Place Your Property for Sale
- List your property for sale, making it clear to potential buyers that the sale is contingent on court approval due to its probate status. We purchase properties that meet these conditions, and you can check if your Virginia property qualifies for a quick cash offer by filling out our form.
- Seek Court Confirmation: In Virginia, whether you need court approval to sell a house in probate depends on the specific circumstances of the estate and the authority granted to the executor or administrator. Here are the key points to consider:
- 1. Authority Granted by the Will
- Executor with Full Authority: If the will explicitly grants the executor the power to sell real estate, the executor may not need additional court approval to proceed with the sale. This is known as “full authority.”
- Executor without Specific Authority: If the will does not grant this power or if there is no will, the executor or administrator will typically need to seek court approval.
- 2. Court-Supervised Probate
- In cases where the probate process is court-supervised, court approval is generally required for significant actions, including the sale of real estate. This involves:
- Filing a Petition for Sale: The executor or administrator must file a petition with the court requesting permission to sell the property.
- Notice and Hearing: The court may require notice to be given to interested parties and may hold a hearing to consider the petition.
- Approval Order: If the court approves the sale, it will issue an order authorizing the transaction.
- 3. Independent Administration
- Virginia allows for a more streamlined process called independent administration, where the executor has broader powers and less court oversight. This can occur if:
- Consent of Heirs: All heirs and beneficiaries agree to independent administration.
- Court Grants Authority: The court grants the executor independent administration powers, which may include the authority to sell real estate without further court approval.
- 4. Special Considerations
- Notice Requirements: Even if court approval is not needed, the executor may still need to provide notice of the sale to beneficiaries and heirs.
- Fiduciary Duty: The executor has a fiduciary duty to act in the best interests of the estate and its beneficiaries, ensuring that the property is sold for a fair market value.
- 1. Authority Granted by the Will
- Advertise in Local Newspapers
- Advertise the sale in local newspapers to inform the public and invite open bidding. This ensures the property receives the best price. We often find probate properties through such advertisements.
- Attend the Hearing
- Attend the court hearing where bids are submitted and reviewed. Once the sale is confirmed, the buyer provides a cashier’s check to the court. If there is a new buyer, refund the previous buyer and take the new buyer’s deposit. As investors, we always provide a deposit once the contract is confirmed by the court.
Did you know you can sell a house in probate in Virginia before the probate process is complete?
If you decide to sell the your property, there is no reason to go through the entire court probate process, run up extra attorney and miscellaneous fees, and pay a 6% real estate commission. If you wish to discuss this further, please call me at (757) 731-7791 or simply fill out the form below!