If you’re handling the sale of a home in probate or trust administration, you may be overwhelmed with phone calls, mail, and unfamiliar terminology. Understanding key real estate terms can help you navigate the process with confidence. Here are five essential terms to know:
Closing Costs
Knowing the facts empowers you to make informed decisions. That’s why, when we meet with potential sellers, we bring an Estimated Seller Proceeds document that outlines all estimated closing costs.
Some of the common closing costs include:
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Real estate compensation
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Title and escrow fees
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Termite repairs or HOA document fees
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Property taxes
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Mortgage payoff
With this document, sellers have full transparency into what will be paid through escrow, helping them avoid surprises.
Escrow and Title
Escrow and title serve as neutral third parties, ensuring a smooth transaction. They manage important paperwork, coordinate with both buyer and seller, and verify property details.
One of the most critical steps we take before listing a home is obtaining a preliminary title report. This report details:
• Any existing liens or debts attached to the property.
• Easements that may impact the sale.
A real-life example: Tom was handling his father’s estate and was ready to sell the home. However, when reviewing the preliminary title report, we discovered that his late mother was still listed on the title. Since her name had never been removed, we had to obtain the necessary documentation before proceeding with the sale. Fortunately, we caught this issue early avoiding significant delays once the home was on the market.
Inspections
Once a buyer and seller agree to a purchase contract, the buyer has a set period of time to conduct inspections. The process typically begins with a general home inspection. If any concerns arise, the buyer may choose to conduct additional specialized inspections, such as:
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Plumbing
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Roof
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Electrical systems
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Heating and air conditioning
Contingencies
A contingency is a condition that must be met before a home sale can proceed. In most probate real estate transactions, there are three primary contingencies:
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Inspection contingency
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Appraisal contingency
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Loan contingency
Why appraisal contingencies matter: We always make it a priority to attend the appraisal. This gives us the opportunity to highlight important features of the home that could contribute to the appraised value. A successful appraisal ensures that the home is valued at the agreed-upon price, avoiding any last-minute financial complications. We also attend the inspection because we want to be able to discuss the findings with our sellers.
Timeline Monitoring
Negotiating a favorable timeline can help ensure a smooth transaction. The standard purchase contract allows:
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17 days for inspections
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21 days for all contingencies to be removed
However, we prefer a more efficient approach, typically negotiating:
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7-10 days for inspections
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10 days for the appraisal
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14 days for all contingencies to be satisfied
Once the contract is signed, these timelines become legally binding. Our team actively monitors them, ensuring that the buyer removes contingencies in writing, so the sale moves forward as planned.
