Can you change the way you hold title when you purchase a property in probate?

When you are buying a probate property, there are many details to handle - and the steps must be followed to the letter. As a buyer, you may be nervous or excited, so it's important to prepare and anticipate each step.

At the confirmation hearing, the judge always asks how you are taking title. You need to decide in advance how you will take title because its very difficult to change after the court confirmation.

Recently a buyer purchased a property and told the judge he chose to hold title as his sole and separate property. After the escrow opened and after speaking to his accountant and reviewing the tax consequences, he decided to change how he held title by adding his wife's name to the title. He requested to change his vesting without realizing that it was going to cost him a pretty penny. When you purchase a property in court you receive a court order showing that you purchased the property and in order to change the vesting, you have to change the order. This means that the attorney would have to go into court and change the order - at the cost of the buyer. This is an expensive change.

It's important to know how you will take title in advance of purchasing property, especially probate properties. You should always speak to you tax consultant.

If you want to get a list of different ways to hold title, please contact us directly at allison@sanbornteam.com or 310-777-2858.

To take the mystery out of buying and selling Probate & Trust Properties, please visit our website at http://www.sanbornteam.com/