What all is involved with buying an inherited property

Question

We're working on a lead from homeowner with an inherited property that is split between 6 children. I'm wondering who all would need to sign the agreement (and what other documents) to make this deal happen? I'm sure all of the children, but would we need their spouses, or anyone else? Looking for any sort of guidance on things to consider with a deal like this. Thanks!

David Krulac · Answer

Usually the executor has authority to sign fro the estate, but not always, or there may be co-executors..

I had one where the attorney for the estate probated the houseS as being zero value and there were 6 heirs who did not get along with each others, so they would not sign with others present.  Took 6 deeds, 5 were free, 1 wanted some money.

Matt Faix · Answer

Thanks for all of the feedback. It sounds like these kinds of deals can take a while or cause a lot of headaches, but in the end can have a nice payoff if everything works out.

What I know so far is that it's been broken into several times, stolen pipes, fire, and it's causing the family a lot of undue stress, so hopefully we can get them all on the same page with wanting to unload it. I haven't been able to get in and see the place yet either, so we'll have to see how that goes too. I just want to try and see what I'd be getting myself into ahead of time. Thanks again for the advice

Rick H. · Answer

Getting the estate probated in order to pass title is one thing. Getting six heirs to agree on anything is another.

I believe that may be the primary challenge. Lots of different strategies to consider.

If it does become an issue, you then have to consider if you are willing to negotiate with each heir to create a separate deal for each one. It can be a pain, but it is possible. Each interest is then dealt with based on the all cash (low price) vs terms (higher price) choice.

Darron Stewart · Answer

@Matt Faix

We just bought estate property 4 days ago, took 4 1/2 months to get to closing...they had to notify everyone and get judge to approve sale.  Contacted really good closing atty, he guided the estate atty to get title cleared for sale and title ins.  Worth the wait and will be clearing it out over the next few weeks.  Contents should bring enough to pay for rehab...

Matt Faix · Answer

@Larry Turowski - Thanks for the info! We haven't worked with any probate properties yet. I'll talk to my attorney though and get his thoughts on the matter, and see who he can recommend. Thanks again

Larry Turowski · Answer

@Matt Faix

The property will need to have been probated.

Here is what I recommend.  Offer to pay all closing costs, but you recommend the seller's closing attorney.  This way you have more control over the deal.  This attorney should be someone who, while not acting against the sellers' interest, will communicate directly with you to let you know what is going on.  That way you can run interference if needed (like getting somebody to get a document to the attorney.  You may want to ask your attorney to recommend someone.

Other than that, let the your and the seller's attorneys handle it.

What all is involved with buying an inherited property

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