Sales of Estate Properties

2007/09/19 Originally published in the Vernon Morning Star.

In most cases the estate paperwork is either complete or nearly complete when the estate property is presented to the marketplace for sale, but not always.

As a buyer you want to be able to rely on the title being able to be passed to you without being entangled in any legal problems of the estate. Realtors make it their business to check with the estate executor(s) and their legal counsel so as to clearly understand what, if any problems may have arisen and if delays are expected. If the passing of the title cannot occur, then it is likely that the buyer will not be allowed possession of the property either. For most buyers, that would be a problem.

It needs to be clear if there are unexpected claims to the estate. For a judge to sign the Letters Probate, she/he must be of the opinion that the wishes of the deceased are being carried out and that there are no other lawful claimants that need to be heard.

If Letters Probate have been granted and there has been no contradiction with the Wills Variation Act, then it's fine for the Seller to proceed with a contract to sell the property. However, if there is doubt, realtors commonly add the following clause. "Subject to the Seller receiving the following by a certain date

1. copy of the Letters Probate

2. assurance that everyone entitled to claim under the Wills Variation Act has waived or released his or her claim against the property. This condition is for the sole benefit of the Seller."

There is protection in the clause for the Buyer to, as if the Seller can't get the Letters Probate etc. by that certain date, the Buyer would be made aware of the delays. The Buyer can then decide whether or not they wish to extend their purchase contract.

I am occasionally asked by Buyers if they can get an extra good deal by buying an estate property. My experience has been that most executors/executrix are very cautious that they get real market value for the property. They feel responsible to the heirs to do so.

Whether you are buying or selling estate property, it's always best to get legal advice. Problems do not often occur, but it's best to be careful.

Jane Field works with RE/MAX Vernon. Jane has over 30 years experience in the Real Estate business. To suggest topics for future articles or to ask Jane questions, email her or call 503-3755.

RE/MAX Vernon | 250.503.3755 | Toll free 1.888.503.3755 | 5603 - 27 ST | Vernon | BC | V1T 8Z5 | Canada

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Sales of Estate Properties