Selling property before probate granted ?

seaforest

I'm acting as executor and would just like to confirm that I'm correct in thinking that I need to get probate granted before putting property on the market.

It seems pretty clear as the gov uk "applying for probate" website says “You should not make any financial plans or put property on the market until you’ve got probate.” .

As the estate isn't an "excepted estate" I need to fill in form IHT400 and associated forms including IHT403 to apply for probate.
On IHT 403 Box 12 column B heading is “Say whether the property has ‘already been sold’ , ‘is on the market now’ or ‘will be sold later’.. . " To me this implies that it is possible to sell the property without getting probate ?

I phoned the helpline for IHT403 and they said there was no reason not to sell the property before getting probate, when I questioned this asking how anyone would know that I had authority to sell a property they implied I can just get the Land Registry to assign it to me which doesn't sound right !

So I still think I'm right that I need to get probate before selling, but obviously would save a lot of time and possible expense if I I can start the process of selling sooner.

Would be grateful for any thoughts.

Mrs_Z

Hi, you don't say whose property are you dealing with?  If you are not a joint owner or anyway associated in having a share in the property, then you will need a probate to complete the sale.
So you can put the property on the market, but when it comes to exchanging contracts and completing the sale, the solicitors will want to see the probate document which gives you the legal right to deal with someone's property, money and possessions (their 'estate').
Sometimes obtaining a probate takes a long time, so you could find yourself in a situation where the property sells quickly and is 'sold subject to contract', but you can't actually progress the sale until probate has come through. In such a case, you'll have to hope for patient and understanding buyers....
This is assuming you're in England by the way.

Marcon

Mrs_Z said:

Hi, you don't say whose property are you dealing with?  If you are not a joint owner or anyway associated in having a share in the property, then you will need a probate to complete the sale.
So you can put the property on the market, but when it comes to exchanging contracts and completing the sale, the solicitors will want to see the probate document which gives you the legal right to deal with someone's property, money and possessions (their 'estate').
Sometimes obtaining a probate takes a long time, so you could find yourself in a situation where the property sells quickly and is 'sold subject to contract', but you can't actually progress the sale until probate has come through. In such a case, you'll have to hope for patient and understanding buyers....
This is assuming you're in England by the way.

You need probate to complete a sale, but it's perfectly possible to have a conditional exchange (always assuming the buyer is willing and able to do so) eg 'subject to probate being granted [usual to put a long stop date]'.

Runner_Duck

After you have submitted the IHT forms you have to wait 4 weeks before putting a probate property on the market.  You need to be absolutely clear with estate agents that it is a probate sale, they will know that you cannot sign anything until you have the Grant of Probate.  There is nothing to stop you and your purchaser with going ahead and completing all the legal formalities except for signing and exchanging contracts.  

seaforest

Thanks all that's clarified it. I am not a joint owner and hadn't considered that, so guess that's why the IHT403 form allows for option of it being sold before probate is granted.

RAS

You will find lot of buyers expect everything to happen instantly and you'll be under a lot of pressure to complete before their mortgage offer ends. Just read all the FTB complaints in the renting buying and selling sub-forum. So don't rush into putting the house on the market. Do ask several estate agents to value the house now, to get an idea of which you like.

Sort out insurance, safe heating and lighting and change the locks.

By all means sort through the paperwork, locate the family mementos, discuss with beneficiaries if there is anything they want from the house and clear away stuff of no personal or monetary value. 

Then tidy up and deep clean. Stage as best as possible. I'd give it a couple of months after probate is applied for, then look more closely at estate agents' fees and contracts. When you appoint, put in writing to them that it is a probate property and give them the date it was applied for. And make sure anyone whose offer you accept knows this as well, if it's not granted by that time.

km1500

once you have applied for probate and four weeks have passed put it on the market 

all estate agents will be very familiar with properties that are on the market but have not had probate yet 

you will get viewings and feedback and may even get an offer from someone who is prepared to wait

TonyMMM

Agents will have different rules about marketing properties subject to probate.... the agent I used, in my role as executor recently, would only accept the instruction once given proof that probate had been applied for.

Marcon

Runner_Duck said:

After you have submitted the IHT forms you have to wait 4 weeks before putting a probate property on the market.  You need to be absolutely clear with estate agents that it is a probate sale, they will know that you cannot sign anything until you have the Grant of Probate.  There is nothing to stop you and your purchaser with going ahead and completing all the legal formalities except for signing and exchanging contracts.  

You can exchange conditionally - see my previous post above.

RAS

Marcon said:

Runner_Duck said:

After you have submitted the IHT forms you have to wait 4 weeks before putting a probate property on the market.  You need to be absolutely clear with estate agents that it is a probate sale, they will know that you cannot sign anything until you have the Grant of Probate.  There is nothing to stop you and your purchaser with going ahead and completing all the legal formalities except for signing and exchanging contracts.  

You can exchange conditionally - see my previous post above.

What would the buyer's mortgage provider do if the exchange was not completed before the mortgage offer ended? 

Marcon

RAS said:

Marcon said:

Runner_Duck said:

After you have submitted the IHT forms you have to wait 4 weeks before putting a probate property on the market.  You need to be absolutely clear with estate agents that it is a probate sale, they will know that you cannot sign anything until you have the Grant of Probate.  There is nothing to stop you and your purchaser with going ahead and completing all the legal formalities except for signing and exchanging contracts.  

You can exchange conditionally - see my previous post above.

What would the buyer's mortgage provider do if the exchange was not completed before the mortgage offer ended? 

The long stop date in the (conditional) contract would cater for that.