If you own a property, that is stuck in the courts, it can feel frustrating and overwhelming. All of your hard work handling everything should pay off in one way or another. In our latest post, we will help you learn how to sell a probate property in Tulsa!
The probate process is stressful. Selling a probate house on top of everything else can only add to the frustration. At Petit Home Solution-We Buy Houses we can help you with a fair and fast sale of your probate property in Tulsa. Keep reading to learn more about our best tips for selling quickly.
How to sell a Probate Property
In Oklahoma, there are two paths to selling a probate property owned by an estate. They both require probate, but one is much more efficient than the other.
The easiest way to sell property in a probate or estate administration is through a Section 239 Sale. This is a reference to title 58, section 239 of Oklahoma statutes. This type of sale is preferable because it doesn’t require ongoing court oversight of the sale process. The personal representative can simply hire a realtor (if they choose), list the property, accept a cash offer from a buyer like Petit Home Solution, sign a contract, close, pay off any mortgage or liens, and take receipt of the proceeds.
Section 239 Sale
- File a probate and set a date for an initial hearing.
- At the hearing, the court will sign an order admitting a will to probate (if there is a will), identify the heirs at law of the deceased, identify any beneficiaries named in a will, and appoint a personal representative.
- The personal representative can then file a petition asking the court for an order allowing the Section 239 Sale and must also file a consent to the sale signed by all of the heirs and any beneficiaries named in a will.
- If everyone consents to the 239 Sale, the court will sign the order allowing the personal representative to sell the property without any additional court oversight.
What Is Probate in Oklahoma?
Probate occurs when someone dies and heirs receive property listed in a will and the debts of the deceased estate are paid off. If you have to deal with the probate process, it is best to deal with a probate attorney as the process moves through the courts. They will be able to provide you with advice, help you handle debt payments, and tax situations, and guide you through an often stressful process. You will need to take an inventory of the estate’s assets and locate all estate planning documents. You will want to notify all creditors and pay off any outstanding debts with money from the estate. There will also need to be income taxes filed, which include a possible inheritance tax. Depending on the situation and if there is a will present, the process can take 6 months to over two years.
Why Would A Probate Home Need To Be Sold?
When a person dies and there are outstanding expenses owed or ongoing expenses such as a mortgage payment, the estate may not have enough income to pay these debts. The executor of the estate may be forced to sell the property in order to avoid foreclosure. If the house is not required to be sold by the court, you will need to wait until the probate process is completed before attempting to sell the house. However, you can plan ahead by speaking to one of our team members and giving them the property basics. We will be able to provide you with a tentative offer, so you can know what to expect once your house has cleared the probate process.
How the Probate Process Works
Even if the property was not left to an heir, the executor of the estate will be tasked with handling the sale of the home. An interested buyer must provide a deposit along with a written offer. Before the offer is approved by the courts, the court will ask if there is anyone who would like to make a higher offer for the property. Once the court approves the offer, there be an opportunity to have the property inspected before the sale of the home is finalized. Once this process is completed, escrow will be able to close within only a couple of weeks. The proceeds of the sale are used to pay any outstanding debts, with the remaining balances going to the heirs as outlined in the will. If you have questions we can you with the process.
Make Sure Everyone Is on Onboard
If there are multiple heirs, it is important to make sure everyone is on the same page. While the executor of the estate has the authority to list and sell the property, it is best to get everyone in agreement ahead of time. You don’t want to have anyone contest the sale or create problems within a family if you can avoid it.
Report the Transfer of Value to the Internal Revenue Service.
The distribution of real estate sale proceeds must be accounted for on IRS Form 706 and Form 8971 as instructed by the forms.