You might be confused with a lot of terms that don’t seem to be comprehensible simply from their on-the-face names. If you’ve ever heard of probate before, it may or may not make sense that it’s a real estate term since it’s used for other unrelated processes as well.
Like almost all confusing real estate terms, probate has its roots in the realm of law. Probate is a type of process by which to open and manage an estate for someone who has passed away who has assets. The process differs from state to state, but sometimes people go through probate to gain access to a deceased person’s bank account or the key to their apartment. Other times, a will must be probated through a probate court before assets can be distributed accordingly.
A probate real estate deposit comes into play when you’ve got a potential home buyer or an investor who wants to purchase real estate of someone who’s passed away. The property is likely caught up in the probate process. Often enough in estates that have no liquid assets and a lot of debt attached to them by way of credit card bills and other related things, if there is a home the executor of the estate will try to sell it to garner some money to pay off debts. The remainder will be distributed to those named in the will, if any, once the creditors have been paid.
The rules surrounding probate real estate deposits differ on a state-to-state basis, once again. Because the law in California requires that ten percent of the home’s overall price be put down in advance as a deposit before the home buying process can continue, a potential home buyer or an investor might run across a little bit of difficulty in purchasing the home. This could present a bit of a problem for your home-buying plans if you don’t have the money, which not everyone does.
All aspects of the home-buying process should be looked into, overall. In the first place, this includes who’s doing the selling of the home. It makes sense to check into your state’s probate laws to ensure purchasing such a home is truly feasible for you if the seller is an executor acting on behalf of an estate.
Interested in evaluating Wheat Ridge Real Estate? Our websites offer quality real estate searches in Colorado. Additionally, we have other websites that allow you to locate Aurora CO Real Estate. These sites can help you find homes and real estate.