Probate in Arizona
Short sale probate in the state of Arizona can be a rewarding experience for those who want to invest in real estate. One of the key reasons why Arizona probate make great choices is because they are often priced lower than comparable properties in the market. However, there are many kinds of risks which are associated with probate sales in Arizona. Short sale probate transactions also take longer to be completed when compared to conventional real estate transactions. Because of this, real estate agents discourage their customers from getting their hopes up and buying foreclosed probate properties through the courts.
Why should a home be sold through probate court?
The reason for selling a property through the probate courts is when a person dies without leaving behind a will that bequeaths the property to a dependent or beneficiary. Whenever such a thing happens, the state takes over the administration and sale of the property. It is the duty of the probate court in Arizona to ensure that the real estate property is marketed in the most appropriate way and the property fetches a fair price. To make sure that this happens, the court lists down procedures, steps and processes that should be followed.
How to market a probate sale
Whenever there is a probate sale in Arizona, the property will be put in the market just like other types of properties. The personal representative or estate representative or probate attorney will be tasked with the duty of appointing the hiring a registered local real estate agent who will take charge on matters that regard to marketing of the properties. They will also sign the property’s listing agreement and show potential buyers the property as it would be the case in a traditional listing environment. To arrive at the listing price for the foreclosure probate short sale in Arizona, the suggestions of the listing agent, together with an independent appraisal which is ordered by the probate court will need to be taken into consideration.
Placing an offer to buy an Arizona probate property
Buyers who are interested with the property are free to make an offer anytime. However, because it is a probate sale, the offer to purchase the house should be accompanied by 10% deposit. An offer by a prospective buyer can be accepted by the estate representative or a counter offer can be made, just as it would be the case in any other real estate transaction. However, it’s imperative to take note of the fact that the price is subject to confirmation by the court. The estate representative may accept the offered price, but it’s important to take note of the fact that the seller is in no way committed to the buyer or to his or her offer. After an acceptance of sale, the representative of the estate will have to petition the court to confirm the sale of the property. This is normally done through a probate attorney. Then a date is set by the probate court where the acceptance is to be confirmed by the probate court in Arizona.
Dealing with the waiting game
After the date of sale is determined, it’s mandatory for the parties to wait for a period of 30-45 days. During this time, the court will ask the real estate to re-advertise and market the property afresh with the price that has been accepted. In Arizona, the probate court will take the accepted price; add on top a margin of 5% plus a fixed sum of $500. This becomes the new price for marketing the Arizona probate property.
Going to the probate court for confirmation
In order to confirm the order for sale, it’s a mandatory requirement for the new buyer, together with any other interested party to come to the court in person to confirm the sale. The property is then sold an auction style. In some instances, new interested buyers will come up to bid the property in increments of about $5000, but if nobody comes up, the person who had made the initial offer gets the property. However, if someone else buys it, he or she must hand over the 10% deposit immediately. However, potential buyers must know that the 10% deposit may not always be refundable in a probate sale unless the property is confirmed to a buyer who is not the original one.
Inspecting the house at the earliest instance is indeed your best defense
Because the original owner of the house is deceased, there is no one to help prospective buyers know about existing problems which the house may have. Also, buyers may not be at a position to know if there are illegal works which had been done on the property. This adds to the reasons why a probate sale can be very risky. It’s therefore of great importance that you inspect the property at the earliest instance. It’s always much better to pay the costs of inspection than to gamble with a huge cost of buying a probate house.
Additional things to take note of
- It takes between 9 top 18 months before a probate is closed. The rules, processes and procedures also allow you up to 2 years before you start petitioning for a probate.
- All creditors who have a claim on the property must make it known to the personal representative of the estate within 120 days. Any claim after this prescribed time is denied.
- The personal representative is mandated by law to receive compensation for the fiduciary duties which he or she performs.
- Interested parties may need to consult with a CPA to work out on their final tax return.
Working with experienced Arizona probate experts helps to reduce the amount of risk which you would expose yourself to when buying probate properties in Arizona. There are many challenges, some of which can be very frustrating to deal with without the assistance of a person with expertise and detailed experience. Experienced real estate experts can also negotiate well for the property, therefore increasing your chances of being confirmed by the Arizona probate court as the owner of the property.
Home page http://azsoldhouse.com
Your Living Trust is Not Complete if it is Not Funded Properly #Estate-Planning-Attorney
If you have taken the time, either on your own or with the help of an experienced estate planning attorney, to create a trust based estate plan, and you have not taken the next step to ensure all of your assets have been transferred (“funded”) properly, then your trust may not accomplish all that you have intended.
Please use the following guidelines…(read more)