BIC TIP #1228: What Is Probate?
What exactly is probate, and when does it matter to a real estate broker? In this BIC TIP, Stephen Long gives a quick overview. If you list estate property, understanding probate is the difference between a smooth closing and a seller in breach of contract at the closing table.
Probate in Plain English
When someone passes away, they often leave assets behind. Bank accounts, insurance, personal property, and real estate. Settling that estate involves the probate process, which gives creditors an opportunity to come forward and lay claim to assets before those assets are distributed to heirs or wherever they are supposed to go.
It is a legal process, and it has steps and waiting periods that cannot simply be skipped.
DIY Is Possible. Is It Wise?
Stephen notes that probate can be done without an attorney. But when real estate is involved, he says it is better to have an attorney guide the process. The stakes are high, and mistakes tend to show up at the worst possible moment.
Why It Can Wreck a Closing
Picture this: you are headed to closing, and it turns out the probate process was not handled correctly. Now the seller may be unable to deliver clear title, putting them in breach of contract. Fixing it may require statutory notice periods and other steps that delay closing well beyond what anyone planned.
Buyers get frustrated, lenders get nervous, and everybody looks at the listing agent.
The Practical Takeaway
When listing an estate property, defer to the estate attorney. Confirm you have the right sellers and the right people signing, and make sure the probate process is complete so the seller can deliver clear title at closing without hiccups. When in doubt, consult a real estate attorney and check with your broker-in-charge.
This BIC Tip is general real estate education for licensees and consumers, not legal, tax, or financial advice. Rules and forms change, so verify current NCREC rules, MLS rules, and standard forms, and consult a North Carolina attorney or qualified professional about your specific situation. See Disclaimers & Disclosures.
Mortgage topics are discussed for general education only and are not a commitment to lend or an offer of credit. Stephen Long, NMLS #2795861, Keller Home Loans, a division of Mutual of Omaha Mortgage, Inc., NMLS ID 1025894. Equal Housing Opportunity.
