Real estate transactions are typically straightforward, but what if something unexpected happens, like the seller passing away after entering a binding contract to sell a property but before the deal closes? This situation can create legal and practical challenges for both the buyer and the seller. Here’s what you need to know.
When a seller dies, the signed purchase agreement doesn’t automatically disappear. The seller’s estate steps into their shoes and becomes responsible for completing the transaction. However, this often means delays while the estate is sorted out.
Before the property can transfer, the seller’s executor or administrator must have legal authority to act. This typically requires that the executor apply for, and receive, a grant of probate, which is the court process of confirming the will. Closing will need to be postponed until probate is granted by the court and the property transferred from the deceased’s name and into the name of the executor.
Most contracts have firm closing dates, but probate can take anywhere from a few months to over a year, so extensions are common and buyers should be prepared for delays. In some cases, a buyer may have the right to cancel if timelines can’t be met.
If the deceased owned the property as a joint tenant with another owner (or owners), the situation is much simpler. Under joint tenancy, the deceased’s interest will transfer to the surviving owner(s) by way of the right of survivorship. This means that the surviving joint tenant can usually complete the sale without needing a grant of probate, provided that they can update the title to remove the deceased from title.
A seller’s death doesn’t automatically kill the deal, but it does add complexity. Patience and legal guidance are essential to navigate probate and protect your interests.
This information is general in nature only. You should consult a lawyer before acting on any of this information. This information should not be considered as legal advice. To learn more about your legal needs, please contact our office at (250)448-2637.