The death of a loved one is hard enough, but if they died without a will or a trust that would keep their estate from going into probate, it is even more difficult. Selling a property in probate can be complicated and lengthy, especially if it’s a large estate.
Probate can be costly, so it’s important that you don’t ignore any of the legalities when trying to sell your inherited property. Otherwise, your property could be tied up in probate for much longer than necessary. You must let the process run its course since the assets must be fully evaluated while the rightful beneficiaries are determined. The executors of the estate may have no choice but to sell the deceased’s real estate, so the probate court can evenly distribute the proceeds among the beneficiaries.
Should you be the executor of such an estate, you will need to know how to legally sell a New Orleans property in probate.
There are certain aspects of real estate law having to do with selling property in probate that carry through to all jurisdictions. These legalities must be followed for the sale to be recognized as valid. You will need to thoroughly research and follow the legalities if you intend to sell the estate’s probate property in New Orleans.
How to Sell a New Orleans Property in Probate
Certified Property Appraisal
The first thing you’ll want to do is to find a reputable independent certified property appraiser. It would be best to get a recommendation from a real estate attorney or a Realtor in New Orleans.
Court Must be Petitioned
Once the property has been appraised, you will want to file a petition with probate court to sell the New Orleans property. In completing your petition, you must provide all pertinent information on the property. You will also need to describe which method will be used to sell the property. You may want to auction it off or list it with a Realtor for sale on the open market. In submitting your petition, you must include the property’s certified appraisal. After the court approves your petition, you can now take steps to sell the property.
Sale is Conditional
Because the court must approve the sale of your probate property in New Orleans, you must disclose this upfront to any potential buyers. Before you can accept an offer, you must obtain the court’s confirmation, which makes the offer conditional.
Request Court Hearing
In petitioning the court to hear your request to confirm the sale, you’ll need to be patient. Court calendars are filled with delays, so you can expect to wait 20-40 days from the date you filed your request, for the hearing to be scheduled.
Buyer Pays Deposit
You are entitled to collect a deposit from the prospective buyer while waiting for the court to confirm the sale. The deposit would be 10% of the property’s purchase price.
Hearing Must be Advertised
Since your goal in selling your New Orleans property in probate is to get the most money you can for the estate, you are required to openly advertise the court hearing to the public. This is so there can be an open bidding process. All interested parties are allowed a chance to participate in bidding for this property, which may raise the final purchase price.
Attend Court Hearing
You are required to be present at the court hearing for however long it takes for the unconditional bidding process to play out. Your prospective buyer is allowed to bid, along with members of the public who choose to participate. Bids will increase in increments of $500. Once the bidding stops and a cashier’s check is submitted for the final purchase price, the process is concluded.
Prepare to Refund the Deposit
If your prospective buyer is outbid by someone from the public, you must be ready to give them a full refund of their 10% deposit. However, should they submit the highest bid, their deposit will be applied to the final purchase price.
Closing
Now you are legally entitled to close on the sale of your New Orleans property in probate. It’s up to you to ensure that all costs related to the property are fully covered in the financing. The full amount realized from the sale must be deposited into the estate’s account. We know this can’t be an easy time for you, so we’re happy to assist in any way we can. Please call Louisiana Direct Home Buyers at (504) 732-1988 or send us an email if you need help selling your New Orleans property in probate.