Probate Sales – I’ve Heard Those Are Good
We’re talking about a probate sale today, about when they happen and what usually is required in order for the sale to go through.
Now this is a general overview, so there’s a lot more technical details involved, but at the end of the day, when someone petitions for a probate, so that means that they usually don’t have a trust or the house is not in the trust and they go to probate, the judge will ask whether that person who is in charge can be bondable. And what that means is, can they get “insurance” if they commit some wrong action?
Now if they are, they have good finances and there shouldn’t be an issue then they’ll get something called full authority. And full authority allows them to sell any piece of property in the probate without what you guys probably heard of as being called a “probate sale.”
So can a house in a probate be sold without any court interference or having to get the approval of the court? Yes, usually that’s what happens because the person in charge has full power. The issue is, when someone cannot be bondable the court puts them on something called limited authority or limited powers.
And when you have limited authority now when you wanna sell a piece of property in a probate you have to now put it on the market, go to court, get it approved, then they show the property, there’s then everybody comes back for a bidding war over the property, this is where you probably heard of a probate sale. It’s not just, “Oh I’ll make an offer of a million dollars.” That’s doesn’t make a difference.
The million dollar offer then goes to court and then anybody in the world could come and overbid the one million dollars, 1.5, 1.6, whatever it is, and go higher and higher to the point where it is now an auction sale. And that is the probate sales that you probably have heard of before. It’s the auction sales, it’s the ones that have a limited authority in court, in probate to do what they need to do.
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