Ever seen the terms ‘subject to probate’ or ‘executors sale’ in a property listing and wondered what they mean exactly?
If so, read on as here’s a quick explainer for home buyers.
What is probate?
When a person dies, they usually leave a will explaining what they want to happen to their assets.*
But before the executor can carry out the instructions of the will, a legal process must take place.
This involves a series of asset and liability checks and ensuring that all debts and taxes (including inheritance tax) have been paid.
Once completed, the government grants ‘probate’ and the distribution of the deceased’s estate, including properties, can take place.
So when you see ‘subject to probate’ or ‘executors sale’ in a listing, this tells you that the legal process involved with a deceased estate is underway.
It’s worth noting that probate properties can make excellent investments, especially if you’re a first-time buyer looking for a doer-upper.
Marketing a probate property
An executor can market a property for sale before probate has officially been granted. So don’t worry if you view a property and the process is not yet complete – it’s all above board.
Viewings, negotiations and some paperwork involved in the sale of a property can take place while the probate process is ticking along.
However, the property transaction can’t complete until probate has officially been granted.
The advantages of a probate property
From a buyer’s perspective, probate properties have a lot to offer.
- Executors are often keen to resolve the sale as quickly as possible to avoid a property sitting empty for longer than necessary. This means that probate properties are often competitively priced.
- Once probate has been granted, you don’t have to worry about dealing with an onward chain.
- Often, probate properties haven’t been updated for a while, so they can be ideal if you’re looking for a renovation project.
- The property may also be in an area where homes rarely come on the market.
Things to know
- While you won’t have to deal with an onward chain, you will need to be flexible with timing. The probate application process typically takes anywhere from four weeks to four months, depending on the size and complexity of an estate. To get a clearer idea of timescales, you may wish to ask the agent how advanced the executors are in the process and confirm that the probate application has been lodged.
- If you’re viewing a probate property, and a relative of the late owner is present, be mindful of their feelings. It’s best to save any questions or comments for when you’re having a one-to-one conversation with the agent.
- As with any property, you need to do your due diligence to ensure you know what you’re buying and don’t get any unwanted surprises once you’ve moved in.
If you’re looking to buy a property, get in touch. We’re here to help you find your dream home.
*The process is different if the deceased does not leave a will.