Probate sales can be confusing and overwhelming. Today, we will break the entire Charlotte NC probate sale process down step by step to help you navigate this situation.
What is a probate sale?
A Probate sale, also known as a probate real estate sale, is selling a property owned by somebody who has passed away. Probate Sales are required in North Carolina when a deceased induvial has or does not have a will. The Probates sales should be advertised publicly for 4 weeks before the probate sale can occur. Probate Sales are conducted by North Carolina probate judges and are regulated by state rules.
Legal framework for the probate process?
After the passing of a relative, all assets will enter a long time-consuming process called probate. The probate process is a court-based procedure that allows a decedent’s will or instructions to transfer assets to be followed after death. Probate doesn’t apply to everyone because some assets bypass probate. Probate can be avoided through the use of a living trust or joint bank accounts. Probate is often required when property passes by will. Depending on if there was a will or trust or neither, the process will be different. Typical, the disbursement is very slow and can be drawn on for months or years, depending on the situation.
The typical process for probate is as follows
The court will validate the will and appoint an executor for the estate.
The property is appraised to current market value and then put on the market for sale.
After receiving offers on the property, the executor can preliminarily accept it, but the court has to approve the sale.
If there are multiple inheritors, everyone will be given a notice of the sale and can make comments.
Who inherits when there is no will?
The North Carolina rules of inherited property without a will are laid out in the state succession laws. This issue frequently leads to a situation with multiple inheritors, and in most cases, the easiest solution is to sell the property and split any profits from the sale.
What if more than one person inherits the property?
It’s not uncommon for siblings who inherit property in Charlotte, NC, to end up as co-owners. This situation is called heir property and has specific legal requirements. All owners have equal legal rights to the property, and if there are disagreements about what to do, the court will be the one to make the final decision.
What about taxes?
When an inherited property is sold, capital gains taxes are calculated slightly differently. Instead of taking the property’s value when it was purchased, the purchase price will jump up to whatever the fair market value is when the owner passes.
For example, let’s say Molly bought her home in 1970 for 40,000 dollars and passed away in 2021. The value of her home in 2021 is now $150,000. If the home is sold for $160,000, you will only have to pay capital gains of $10,000.
Other fees to consider when selling through probate include lawyers, court fees, and realtor fees. Probate realtors are typically paid a percentage of the property’s sale price, and there is very little regulation on this practice.
If you are trying to sell your home through probate, consider working with a realtor with experience in probate sales since they will know all of the applicable costs associated with selling a house during Probate.
Other ways to sell
Another common method to sell an inherited property is a local Charlotte, NC, cash buyer or professional home buyer. Local home buyers are familiar with the law and usually have creative solutions to help sell your home using a 100% cash offer. Not only can they provide a smooth, quick, and seamless sale, but they can help you get in contact with their attorney for legal help.
When a family member dies, it can be tough to deal with a complicated matter like a real estate sale. We hope that this article has helped you understand the probate sale process in Charlotte. If you have any questions, we want to help. Call us today, and we would be happy to assistant you in any way possible free of charge, and if it’s the right fit, we can make you a cash offer.