The terms of a probate real estate transaction are clear and concise. When the judge confirms the sale, the property is yours. Thus if for some reason you cannot close escrow--for example you cannot get a loan on the property--then you are liable for the damages that the estate incurs for the failure of the buyer to close.
When purchasing real estate through the probate process, the terms of the sale are as follows:
- No Contingencies: no finance, no appraisal and no inspection
- AS-IS: the seller will not do any repairs, including termite work
- 30-45 day escrow
With the ever-changing atmosphere in the lending market, it can be more difficult for buyers to get loans on properties. Thus, even before making an offer on a probate property that requires court confirmation, the buyer must be 100% sure that he/she will get a loan. If the buyer makes an offer on the property but fails to get a loan, the seller can vacate the sale in court and put the property back on the market. The buyer can loose his/her entire deposit as liquidated damages. If the property does not sell for what the previous buyer purchased it for, the estate can take the difference out of the 10% deposit.
It is very important when purchasing and selling real estate through probate and trust to work with an agent that has experience in probate real estate sales.
If you are considering the sale or purchase of real property through probate or trust, The Sanborn Team is always available to assist you and answer your question. Give us a call at 310-777-2858 or explore our website at http://www.sanbornteam.com/.
