Owner Dies 2 days before closing

[Josh Adamo]

REALLY NEED YOUR HELP AND ADVICE PLEASE!!! 

So I was under contract on a house that we were about to fix and flip and the owner of the property was already old and on her death bed but she had her daughter as power of attorney.  Well 2 days before closing she passed away and now supposedly the step son is named the executor on the will and he is not wanting to follow through on the contract that we were about to close on. He is wanting to list the property with the same agent it is already listed with and try to get more money. We have already come out of pocket around $500 for an inspection and had our contractor come out there and give us a bid for repairs. 

If he breaches this contract and decides not to go with our offer is there any recourse we can take to at least try and get our $500 back from the inspection? I know a lot of you prob don't do inspections but this was my investors first fix and flip deal and he was taking extra precaution.

What would you do in my situation?? Thanks in advance!

[Brandon Diaz]

Dang! What a situation!

First, see if the daughter has power of attorney after death. She might, but it has to specifically say it. If it does, go to closing. If she doesn't than you'll need to go a different route.

Next, Grab your purchase and sales agreement and go to the courthouse. If it is notarized, than you recording the contract will be super easy. Tell them you want to take this document and record it on the deed of 123 main st.

I would guess that you did not do that (because who notarizes a purchase and sales?). You might be able to still record that document without having it notarized but recording purchase and sales agreements have been a hassle in a lot of areas and in this situation you cannot afford a mistake. So, we are not going to test it out. Here is what you will do....

You need a unilateral agreement (Affidavit of interest) and go and get that notarized. Take that document and your purchase and sales agreement and go to the court house- with the unilateral agreement on top of the P&S on the bottome and go record it on the deed. Hand it to the person as is.

You are basically placing your interest on the property and the son will not be able to sell the property with a clean title because you have placed a claim on the title. Make them take you to court and make your claim with a judge. I would absolutely tell the son that you are doing this by the way and that this decision is going to cost him money with an attorney, and that his future buyer is going to back out once they see the claim, no bank will loan on this property because there isnt a clear title. This could all be avoided if the stepson follows the agreement that was PROMISED during that person life.

I understand that this is a sensitive situation, but you are losing money, time and a property in this same unfortunate situation. You were doing that person at the time a favor, and the stepson is making this a headache- you are not. You are following a promise.

A judge is the only person that can clean this up. Let the stepson spend the money and effort to make that happen. Just wait for the day you get the notice and have all your documents organized and ready for that day and be excited when they do.

Going to attorney is costly. Doing nothing is costly. Doing it this way is the cheapest, safest, and the only real answer is going to come from the stepson doing the right thing or a judge forcing the stepson to doing the right thing.

The contract might be voided after death, but I would let a judge make that decision.I actually DO NOT think the contract is voided after death. 

I really don't know what anyone else would say, but its unique situation and that is absolutely what i would do here and that is what you asked.

I hope it helps

I did some research and each state is different. Contracts follow the land and NOT all contracts are voided upon death. 

Here is an attorney that wrote up a question an answer for Florida.

http://aboutfloridalaw.com/2016/05/17/what-happens...

I know you are in Georgia and I read another article of someone in Georgia that said basically the same thing. I did not share that link because they were some Joe but they said the same thing that this article basically did. I agree with them though and this one makes more legal sense so I shared this one.