The answer to the often-asked question “Can a house be sold while in probate in Baltimore, Maryland?” is “Yes.” The Probate process often occurs when someone has transitioned but there was no will in place to provide instructions on how to dispose of the assets. When no will is present, then the appropriate jurisdiction steps in to help determine who is legally entitled to the property. Each state has certain rules and regulations that you must follow throughout the process but in short yes the house can be sold while in probate in Baltimore, Maryland. Only catch is The probate court will monitor every step from when you receive an offer, and if you’re the executor, you, too, must monitor and approve all the terms of the sale. Dealing with losing a loved one is a difficult process, but understanding how to dispose of the property will make things a little smoother.
Can A House Be Sold While In Probate In Baltimore, Maryland?
Appointment of Administrator/Executor
If the decedent’s will designated a specific person as the executor and that person is willing to act in that capacity, then he or she is officially appointed as the executor. If on the other hand, no one has been designated as executor in the will, then the court and/or other relatives will appoint a near relative to act as administrator.
Appraisal
The next step is to have the property appraised. But you must make sure the appraiser you choose is a licensed, reputable appraiser. The property must sell at a price that is at least 90% of the appraised value, so you need an appraiser who can get it right.
Sale
This is the step where the answer to “Can a house be sold while it is in probate in Baltimore Maryland?” begins to become a reality. And you’ll start by having your agent list the house on a multiple listing service so that buyers will know it’s a probate sale.
An interested buyer makes an offer along with a 10% deposit, an offer which you can accept or reject. If you do accept it, the offer is then subject to court confirmation. You must submit the offer through your probate attorney to the court for confirmation. If everyone is in agreement, then a date is set for the sale to be finalized in court.
When the offer on the house in probate has been accepted and confirmed by the court, a Notice of Proposed Action must be mailed to all the heirs. This document states all the terms and conditions of the proposed sale. Heirs then have 15 days to review the notice and raise objections if they have any. If none of the heirs has any objections, the sale can go forward without a court hearing.
Overbidding
Now, here’s where it gets a little complicated. Before the court confirms and approves the original buyer’s offer, the judge will ask those present in the courtroom if any of them would like to bid on the property. If no one does, then the sale proceeds in the standard fashion mentioned above.
If, however, there is an overbid, the original buyer’s 10% deposit must be refunded before the new sale at the new bid price can proceed. When the overbid is accepted, the new buyer must then put up a 10% deposit, which is required to be a cashier’s check. This check for the accepted overbid deposit is presented to the executor/administrator at the winning bidder’s acceptance hearing.
Technically you need to have court confirmation and approval before a sales contract can be signed. Normally, if you go the traditional route with an agent you must let them know because the sales contract cannot have any contingencies and escrow will have to happen two weeks after the final hearing. Luckily, when working with a home buying company such as Charm City Property Solutions we only need 10 days to close the deal!
Selling a home during the probate process in Baltimore, Maryland can be complex and it is highly recommended to hire an attorney that is experienced in the process. If you need a referral, feel free to reach out to us and we can point you in the right direction.