Are you an executor selling an estate property?
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The role of an executor in administering an estate is simply undeniable. Depending on the size of the estate, an executor needs to perform a chunk of tasks. If the deceased person/Will-maker had only cash in bank accounts, the executor will coordinate with the respective bank and will fulfil all the requirements of the bank to close the account. Once all requirements have been met, they will be eligible to receive the funds from the accounts. The bank will deposit the amount into an estate bank account. If an executor is not sure about his responsibilities or needs any legal assistance, he should consult with reputed deceased estate lawyers Adelaide to avoid dispute or delay.
What should an executor consider if he has to sell a property for the estate?
If the estate has a property, the executor can sell the property on behalf of the estate. To sell the property on behalf of the estate, an executor should follow the bellowing.
Ensure the property has been transferred to the executor’s name
To transfer the property in his name, an executor may need to obtain probate. In some places like New South Wales, the executor should obtain probate. But in other places like Queensland, there are some exceptions. If a property is the only asset of the estate, the property can easily be transferred to the executor without probate.
Ensure the estate property should be valued or appraised
Once the estate property is transferred to the executor’s name, the executor must take steps to either have the property formally valued or appraised. These two are not the same, there is a difference between these two.
· A valuer used to conduct a formal valuation of the estate against a fee (depending on the size, location and type of property of the estate). Generally, a formal valuation is related to a bank valuation and is lower than a market appraisal.
· On the other hand, a real estate agent is responsible for a market appraisal of the estate property. If the executor wants to get a market appraisal, it would be wise if he can conduct 2 or 3 appraisals from different real estate agents for the estate property. In contrast with valuation, market appraisals are higher than a valuation.
Take advice as per the best method to sell the property
A real estate agent can give you feedback whether you need to sell the property through private tender or auction. This advice should be confirmed in writing to the executor in the event that the beneficiaries query the method of sale used.
Ensure any mortgages registered over the property are dealt with
An executor should address a mortgage if it is registered over the property. Sometimes, it is observed that though the mortgage has been fully paid, still; it is registered on the title for the property.
An executor should have adequate knowledge of the estate’s assets and liabilities. If the deceased’s mortgage has been paid, then the executor should take the required steps to discharge the mortgage from the property. This can save time during the time of settlement and at the sale of the property.
Ensure all receipts and accounts for works to the property in preparation for sale are reserved, especially if the estate property is an investment property.
If an estate property is an investment property, then it is needed a coat of paint, new rugs or some renovations to prepare it for sale. The executor should retain a certain amount of money for preparing the estate for sale, as this will be needed by the accountant when it comes time to finalise the taxation for the estate.
If the property is being sold at auction, will the executor disclose the reserve price to the beneficiaries?
This point often arises in estates where properties are sold at auction.
· An executor’s duty is to distribute the estate equally among the beneficiaries. Therefore, it is the executor’s responsibility to share the reserve price set for the auction to beneficiaries.
· On the other hand, an executor’s fiduciary duty is to the beneficiaries, and they are responsible for administering and maximising (if possible) the value estate. In such a scenario, sharing a reserve price with the beneficiaries may not go well with the estate.
This article gave you an adequate idea if you are selling an estate property as an executor.
Evans Testa Barristers and Solicitors is a well-known law firm that gives you the best suggestions and advice to deal with your day-to-day legal matters. The agency has professional deceased estate lawyers Adelaide who used to offer the best assistance to the executors if they are facing any problem while administering an estate.
By visiting the official website of the estate, you will know more about it.
