Can a house be sold while in probate in Loveland, CO? Yes, a house can be sold while in probate in Loveland CO if specific steps have been followed.
Let’s understand first what probate is and then go through the steps!
Probate is the process of reassigning the property to the beneficiaries/heirs with the court of law after a person dies and leaves their property(s) behind regardless if they had a last will or not. Depending on the complexity of the case and how many beneficiaries/heirs there are it can take between 4 and 6 months to complete the probate process in Loveland CO. Typically, probate involves lots of paperwork and hiring a lawyer to make appearances at court. The lawyers and court fees are paid from the estate property, which would otherwise go to the individuals who inherit the property.
Step 1: Appraise the Property
This is an extremely important step as it will determine what type of probate you can to go through. There are two basic types of probate the first is called Formal Administration “Full Probate” and this type of probate is for estates with assets of $75,000 or more. The second type of probate is called Summary Administration as you can probably guess this is for estates with assets of $75,000 or less, these types of probate tend to be quicker and cheaper.
In order to get an appraisal done you need to look up an independent certified appraiser, you can search on Google for “Loveland Appraisers” or reach out to a local real estate agent for a recommendation.
Step 2: Obtain A Petition From The Court
After your appraisal is complete you need to fill out a petition form, mentioning the method of sale and other sales related details. You’ll need to include the independent appraisal with the petition. At that point, you’ll need to wait till the court approves the petition. It’s important to understand that the property can’t be sold till this step is complete.
Step 3: List The Property For Sale
List the property for sale and don’t forget to inform all prospective buyers that the property is in probate and will be sold only after the court confirmation. This applies to both listed properties with real estate agents on the MLS or for sale by owner.
Step 4: Report the Sale and Petition For Order Confirmation
The interested buyer(s) must make an offer accompanied by a 10% deposit. A Notice of Proposed Action is mailed to all heirs stating the terms of the proposed sale. Heirs have a 15 days window to examine the notice and place any objections. If there are no objections, the sale may proceed without a court hearing.
Step 5: Advertise The Sale In Local Newspapers
The sale must be advertised in a local newspaper for the county in which the property resides. This is done so that the public will be informed that the real estate will be sold during the probate period. Such an ad will also facilitate open bidding so that the property will be sold at the best possible price.
Step 6: Overbidding Process At The Court Hearing
At the court hearing, the judge will ask if there is anyone present who would like to bid on the property. The next bid must be 5 percent plus $500 over the original offer. The highest bidder will give a cashier’s check to the court after the bid is confirmed and if the highest bid is from a new buyer the former buyer will receive their money back. At this point, the contract/sale can be finalized.
If you’re ready to sell your house during probate in Loveland give us a call at (970) 744-4949 or for a quick cash offer, fill out this form.