Are you planning to sell an inherited or probated home in Florida? Well, then, you must know that it can be difficult to sell probate property, which is why it is advised that you spend some of your time becoming familiar with the inheritance procedure.
This article discusses the filing requirements and costs, including expenses, attorneys, stages of litigation, tax ramifications, county records, as well as court resources when selling an inherited Florida home.
So if you want to quickly, easily, as well as profitably sell a house in probate, then I advise you to read this article until the very end. So with that being said, let’s start.
What Is Probate?
After someone, “the decedent,” passes away, the legal procedure known as “probate” begins. It involves managing the “estate,” which is the total value of the deceased person’s assets.
The two primary goals of probate are as follows:
- The estate’s debts have been paid.
- Beneficiaries, as well as heirs, receive property ownership.
The procedure entails demonstrating the legitimacy of a will (if one is present), identifying as well as valuing the deceased’s property, and paying any remaining taxes or bills. It is also worth mentioning that after resolving legitimate creditor claims, property that is still available is allocated following state law in the region. Real estate, personal property, financial assets like stocks and bonds, as well as business owners are all included in probate property.
Can You Sell A House During Probate In Florida
Absolutely! In Florida, a house can be sold during probate. Even the payment of estate debts and legal costs, as well as their conflict, may necessitate the sale of inherited property. People may choose to sell an inherited home for a variety of reasons.
Some people decide to sell their homes because they are having financial difficulties, others do so for personal reasons, and yet other individuals do so to avoid the hefty taxes as well as upkeep fees that come with owning a home.
Whatever the reasoning, you should be aware that it may be more difficult to sell a house in probate than it is to sell a normal home. But that does not imply that a residence in probate cannot be sold.
How To Sell Your House During Probate?
First, appraise the property. If you’ve already chosen a real estate agent, they’ll probably be able to recommend someone. You can also find an appraiser quickly online. The property will subsequently be listed by your realtor and advertised to gain exposure.
Your Florida real estate agent will advertise the property on Realtor.com, Zillow, as well as the multiple listing service. Do keep in mind that the property will be disclosed to buying agents as a probate sale.
A buyer must submit an offer with a 10 percent deposit; the seller may accept or reject the offer. The estate representative will next ask the court to approve the transaction by submitting a request through a Florida probate lawyer. If both parties approve, a future date is then scheduled for sale to be legally concluded in court.
When an offer for the property is accepted, a Notice of Planned Actions is sent to any or all heirs, essentially outlining the terms of the anticipated transaction. The notice must be examined, and any objections must be made within 15 days by the heirs. In the absence of any objections, the transaction may be completed without a judicial hearing.
Probate Litigation Stages
Florida’s five-stage probate court process includes the following:
1. Filing the petition
Legal action in a probate case is brought by:
- A will’s executor or personal representative asks the court to verify the will.
- A person might ask the judge to be chosen executor in the absence of a will.
2. Notice to beneficiaries and creditors
Any interested party is notified by a personal representative, usually through an attorney.
3. Paying off the estates debts, expenses as well as taxes
Debts of a decedent do not go away when they pass away; you must settle them before receiving any property. Credit cards, mortgages, unpaid bills, back taxes, as well as attorney expenses may be included in them.
4. Legal title to real estate passes as per a will and/ or local law
The personal representative asks the court to order the distribution of any leftover assets to beneficiaries after the estate pays its debts.
5. Closing the estate under probate
A final account and a request for final distribution are prepared by the executor. After paying creditors and formally distributing assets, a hearing is set with notification to all parties involved. A “closing statement” or “close affidavit” testifying to the equal distribution of all assets.
Costs Of Probate And How To Pay Them
The cost of probate litigation can certainly be high. It is also worth mentioning that in Florida, it might be expensive for many heirs to sell a probate home. So with that being said, here is what the expected costs in Florida include:
The biggest expense is the legal fees. Probate lawyers handle the petition filing, notifying of heirs & creditors, property inventory of both assets and liabilities, as well as litigation management. The average hourly wage for uncomplicated cases is $150, but the hourly wage for complicated cases might exceed $300. The city, as well as the level of expertise of the lawyer, both affect hourly rates.
Filing fees for courts
In Florida, the opening fee for a probate estate is $232.00; for estates worth less than $1,000, the fee is $236.00, whereas, for estates worth more than $1,000, the fee is $346.00.
Payment to the personal representative
In Florida, personal representatives can demand payment. As compensation for routine services, a personal representative is entitled to a commission that is deducted from estate assets, as stated in S. 733.617; “The commission will be determined by the value of the estate, which is the inventory value of the estate’s assets and income received by the estate during administration.” It is assumed that a 3 percent fee on the first $1 million in assets is appropriate.
Selling a probate property in Florida might not be as easy as you expected, but that doesn’t mean that you cannot sell it at all. I made sure to include all the necessary information that you must know before selling your house in Florida. It will make things easier for you, and you will know where to start.