California probate realestate offers unique investment opportunites that can yield a high return of profit. Locating probate properties requires research of public records through local courthouses. Investors should possess the ability to track down the history of properties to determine if a mortgage exists or if any liens are attached.
Pertinent information about California probate realestate can be found within decedents’ Last Will and Testament. Wills must be validated through the probate court to ensure outstanding debts are paid and assets distributed according to probate law.
A probate executor is designated within the Will. This individual is responsible for managing all facets of estate duties. Oftentimes, a relative is appointed to administer the estate. In some cases a probate lawyer or estate planner carries out the duties. Either way, investors will need to contact the designated executor to determine if the real estate is available for sale.
The property address of probate real estate is generally included in the last Will. Once the location is obtained, investors must engage in additional research of court records. Property records reveal if the decedent has a mortgage, creditor or tax liens, or if the real estate is owned outright.
Once potential properties are located, the next step involves contacting the estate executor. This can be done by phone or mail. Investors should first offer condolences before engaging in conversation about purchasing their loved ones’ property.
Explain you are a real estate investor who purchases property from estates to help ease financial burdens or release heirs from the responsibility of maintaining the home. Many estate administrators do not realize real estate can be sold during the probate process. If the estate is financially strapped, selling the home could provide much-needed relief.
The estate is responsible for paying outstanding debts and maintaining real estate holdings throughout the probate process. Probate generally lasts between six and nine months, but can drag on much longer if family disputes arise or the court system’s caseload is overburdened.
Even if California probate realestate is owned outright the estate must continue paying property taxes, homeowners’ insurance and general maintenance costs. If the estate does not possess the financial means to pay real estate related expenses, the Administrator can elect to sell the home. If multiple heirs are entitled to the property they must all agree to the sale.
Two processes exist for selling California probate realestate. The most common is known as Court Confirmation and real estate sales must be supervised by a probate judge.
The second process is known as the Independent Administration of Estate’s Act. IAEA allows probate executors to administer the estate without court supervision. This authority can be granted through the decedent’s Will or a probate judge.
When attempting to purchase California probate realestate, ask the Administrator what price they feel is fair. Oftentimes, executors sell the property well below market value in order to reduce financial burdens or relieve responsibilities of caring for the property.
By taking time to become educated about the process of buying California probate realestate, investors can tap into an undiscovered goldmine. Consult with real estate investors or lawyers who specialize in probate real estate before embarking on this type of real estate investment.