The term ‘probate’ refers to the process that determines who is entitled to deal with the estate of someone who has died.
The person named as executor will be required to obtain a legal document that gives them the right to deal with the affairs of the deceased; this document is known as the ‘grant of probate’.
On the Saga Legal website it explains that the a grant of probate gives the executor of someone’s Will the right to sort out their love ones affairs, meaning the executors are then able to deal with banks and other financial institutions, local authorities, tax and pensions, insurance and estate agents when selling a property.
You can also deal with probate related around buying commercial property.
The pros of buying probate properties
With the cost of maintenance, tax and other costs the executor may wish to sell the property as quickly as possible; if this is the case, then it may be possible to get the property at a good price as a result.
The prospect of lengthy court proceedings means that investors tend to avoid probate properties. This means there is less demand for them as a whole, and true to the notion of supply and demand, it then makes the properties more affordable.
The cons of buying probate properties
A property is unlikely to go through probate court too quickly; however, it is possible to speed up the process by offering to pay for the house in cash. However, due to the complicated processes involved in probate law, it can still take some time, even with such an offer on the table.
The sale of the house could be further complicated by the possibility of debt being attached, fortunately though two thirds of houses in probate court are not affected by such a problem.
Slow sales can also be a source of real frustration, especially during the winter months when the potential for repairs increases.
Although there are definite cons of buying a property under probate, they’re far outweighed by the pros. With less demand for such properties, the financial benefits make probate properties an ideal investment.
Picture courtesy of Images_of_Money, with thanks
