question about Probate deal

[Account Closed]

Hi everyone,

I negotiated a deal with the executor but the probate case hasn't closed yet. The executor told me they would like to sell the house before the case closes. Is this possible and are there any risks associated with this? 

Also, will the executor be considered the seller? 

[Tyler Mullen]

In my experience, and I'm not an attorney but I've completed about 50 probates in my State...  If you have reached mutual agreement on a contract today, before the probate is closed, then the executor/administrator of the probate can't close the probate until your deal is done, or if they did, you'd have a contract that would be unenforceable or maybe void, because it would be a contract with someone that no longer had the legal capacity to close.  (Regardless of the deed still being in the name of the deceased or if it went to an heir.)

The seller would be "Joe Smith as executor (or administrator or personal representative, whatever their capacity is) for The Estate of Alan Johnson".

I have never been involved in a probate that did not complete a real property sale before it was closed, assuming the buyer isn't an heir.  Usually because there are multiple heirs.

Risks?  I assume IL is the same as WA, you will likely be getting a bargain and sale deed rather than a statutory warranty deed and you won't get a seller disclosure agreement unless the executor was a resident of the property.  A court appointed fiduciary seller is very much like a bank or government seller, they don't warranty anything, they are exempt from certain disclosures required of normal sellers and it's as is so these kinds of deals require additional due diligence but can also be great deals.

I hope that helps.  Feel free to PM me if you would like to discuss further.