You may be considering selling a recently inherited property in Durham, North Carolina. Or you might find yourself the personal representative (executor or administrator) of an estate that owns property. Your job as the fiduciary is to determine what is best for the estate. You may want to sell for several reasons:
- to pay for debt owed by the estate’s claims and debt need to be paid
- to have funds to for inheritance
- to meet instructions of the last will & testament
- to pay for Attorney fees
- To downsize for surviving spouse or family member(s)
During the probate process heir’s will be distributed their portion of their inheritance after all verified debts and claims to the estate have been reconciled. As the personal representative you may be wondering if you need the approval of heirs to sell real or personal property.
In almost all cases, the executor has the legal authority to sell estate property without getting all the approval of all heirs. However, all heirs will be sent a Notice to Beneficiaries of all estate sales and transactions. During the inventory and accounting phase of the probate you will need to give an account for the value of the property at the time of the decedent’s death. You will also need to use the estate’s bank account to deposit and hold proceeds from the sale.
Getting Permission to Sell Real Property in Durham NC
There are many ways an estate executor can be granted permission to sale property. One of the most often occurrences is when the last will and testament directs the executor to sell the property.
Another way in which to receive authority to sell the property is by petitioning the court to allow for the sale of the real property in order to create funds to pay debts and claims of the decedent’s estate. If real property not willed to the estate is needed to pay claims, it can be brought into the estate by filing a special proceeding before the Clerk. [G.S. 28A-17-2].
Special Proceedings for the Sale of Real Property
The executor will file the petition at the county where the decedent passed. There must be a full description of the property to be sold, contact info for all heirs, and a summary from executor explaining why the sale of the property is in the best interest of the estate. Each heir will also receive a copy.
There must be a reasonable attempt to locate all heirs. If an heir is unable to be located a third party researcher must be used to attempt to find the heir. Also guardian ad litem usually will apply to minors that are heirs.
Scheduling a Hearing for Petition Approval Probate
Once the petition is filed, you will schedule a hearing date from the Clerk. During the hearing, the Clerk will determine whether or not the property should be sold. Estate debts, liens, and encumbrances will be reviewed and compared to the estate’s assets. If the court recognizes that there is more debt owed than there are assets then often the sale will be approved.
After the court approval the sale of the property can continue. Proceeds from the sale will be used to pay any mortgages or liens on the property, then towards the estate, and the remainder is distributed among beneficiaries.
If you would like help finding viable selling options for your home, contact us at www.estateproservice.com