Replies

1. 
   smslaw | Oct 16, 2007 11:21pm | #1

   Talk to your own lawyer.  The property needed an appraisal for estate tax purposes. I doubt the appraiser needed to be appointed by the court.  The executor needs permission from the probate court (or whatever they call it in CA) in order to be able to transfer title.  The only reason for using a Realtor and listing on MLS is so none of the heirs will complain later that the executor sold it for too little money.  Whatever you do, have your own title examination done and buy an owner's title insurance policy.

1. 
   timc | Oct 17, 2007 07:54am | #3

   Could you explain 'Title examination' and why is title insurance important.
   The heirs would almost certainly prefer a quick sale and pay $5,000 commission rather than wait for, possibly, a better offer and then pay 7% commission. Even though the property isn't actually theirs at the moment should they be asked which route they'd prefer and if they chose a quick sale could they come back at a later date and contest the sale price?
   Thanks

1. 
   BillHartmann | Oct 17, 2007 08:17am | #4

   The title search is so that that you know that the "owner" actually owned the house and that there aren't any liens against the property.Title insurance is defend the title if there are any claims against it. For example a later will shows up or an ex spouse that claims that they never signed off and that their signature was forged."I had already said to the executor that I'd buy it and that he should just go with Help U Sell so the estate would pay a flat fee of $5,000"Why Help U Sell.What are you, or the executor, going to get for $5,000.One thing to be alert to is any "hidden" conditions in the house.You aren't going to get a meaningfull disclouse statement from a executor..
   .
   A-holes. Hey every group has to have one. And I have been elected to be the one. I should make that my tagline.

1. 
   timc | Oct 17, 2007 08:34am | #6

   A realtors high fee (more than) covers the advertising and any open houses but if my offer is accepted then there would be no need for this. They would only have to do the papaerwork which is the same as a fixed price company would do. Around here there are a few companies like Help U Sell that will do it for $5,000 which sure beats 7%.
   I have already had a good look inside and outside the house and shall look some more as I am aware there will be no disclosures.
   Thanks

1. 
   BillHartmann | Oct 17, 2007 03:58pm | #9

   You still did not indicate what services that they get for the $5,000.I did not suggest a RE agent as an alternate.I am not familar with CA, but in many states title companies do the closing. There is still a fee to handle the closing.And based on your questions YOU should really have an attorny that works for YOU..
   .
   A-holes. Hey every group has to have one. And I have been elected to be the one. I should make that my tagline.

2. 
   kurt99 | Oct 17, 2007 04:12pm | #10

   All you need is a title company or real estate attorney, which ever is conventional in your state, to generate the closing paper work, do the title search, and conduct the closing. The real estate agent, whether the 7% guy, or the $5000 operation is charging most of the money for marketing and advertising. If the estate sells to you, this is unnecessary. The estate may want to go this way if they feel that they can get a better deal than you are offering. The estate should have an appraisal for tax purposes and to know if your offer (or any other offer) is reasonable. These are all issues for the estate and not you.You should make a written offer to purchase the property, then it is in the hands of the estate. If the executor is lost in what to do, you may need to point them in the right direction. It is in your best interest that they accept your offer and proceed to closing. Bringing any sort of real estate agent in increases the chances that they look at other offers.You can use a real estate contract from an office supply store. If you are not comfortable with the legalese, I would recommend you have an attorney of your own, one who represents you and only you, to review the offer before it is submitted. Likewise, have this attorney review the closing documents.The title company or closing attorney will insure that the estate gets the proper court approvals, proper signatures, etc. This is their job of a title search and prep for title insurance which will pay should they not do this correctly.

2. 
   smslaw | Oct 17, 2007 03:26pm | #8

   Billhartmann explained title examination and title insurance. 

   A title insurance policy is inexpensive and well worth the money.  I am currently defending a client against a claim that someone else owns the land he bought several years ago.  My fee is being paid by the title insurer and if we lose, the insurer will give my client what he paid for the property.  The one-time premium was only a few hundred dollars.

   Once the court gives the executor the authority to sell the property, the heirs would not have a claim to the property, after it is sold.  The executor has a fiduciary duty to the estate to act prudently when selling an asset.  If the executor fails to act prudently, the heirs may assert a claim against the executor, but not against the buyer (assuming there was no fraud, etc.)

   You definitely need to consult a lawyer to make sure that your interests are protected under your local law.  Speak to one before you put any money down, to make sure you don't lose the deposit if anything goes wrong.

2. 
   marv | Oct 16, 2007 11:32pm | #2

   Here's what you do.  When the executor lists the property, he indicates in the contract that if the house is sold to you, no commission is paid.  This is because the realtor did no work to sell it to you.  This is done all the time.

   You get out of life what you put into it......minus taxes.

   Marv

3. 
   Jim_Allen | Oct 17, 2007 08:27am | #5

   Do yourself a favor: just make a written offer for what you think you want to spend for the house. Dont' try to figure their costs. Don't bother with how they will pay for agents, appraisals or anything. Just make the offer.

   When the offer is in the hands of the executor, you have a great chance at getting an acceptance.

   If your offer is close to fair, I can almost hear the family telling the lone ranger "a bird in hand is worth two in the bush".

   Put it in writing with some option money or earnest deposit.

   jim

   fka (formerly known as) blue

1. 
   timc | Oct 17, 2007 08:43am | #7

   Being an executor for the first times is a bit overwhelming and time consuming. I think in this case the executor has been told different things by various people and is ready to hire someone at 7% because a) he's been told it HAS to go through the MLS and
   b) because he just wants to be done with it.
   Obviously I want to get it at a good price before it even goes on the market if possible but I understand there are procedures that must be complied with BY LAW to protect the estate, I just don't know what these procedures are.

4. 
   VaTom | Oct 17, 2007 04:49pm | #11

   You've already had the legalities explained.  Can't imagine that Realtor involvement could be required.

   I bought a house in a similar situation.  7 heirs, the executor was not one of them.  2 had no idea the house existed, 1 signed with an "X".  Title insurance?  Absolutely.  Compounding things, the property had never been surveyed.

   You only need to concern yourself with your side of the transaction, including legal advice.  We used a sole attorney here, but he and I have history, discussed the legalities/representation.  He also got a large percentage of what I paid, for his work getting the title straightened out. 

   Since resold, no title problem.  Very large profit.

   Good luck.

   PAHS Designer/Builder- Bury it!