[WSBAPT] Probate: Sale of House

[Douglas Bratt]

Hello:

I completely agree with Melinda's Number 1, Number 2, and Number 4, below.  I think that an appraisal by a Licensed Real Estate Appraiser is absolutely vital, to set the proposed sale price.  And, I think other heirs should have the opportunity to, perhaps, put in a bid on what they would be willing to pay for the real estate, perhaps even more than the PR wants to pay.

Much depends upon whether the proposed sale is to the PR or to the neighbor (in which case, there is less reason for heirs to think that the PR is favoring him/herself.)

I also think that a clear explanation to the heirs of the entire situation is very important (as well as an explanation as to how an heir could use his/her share of the estate as a means of financing what would ordinarily be considered a down payment by a bank, making a possible purchase easier for any of the heirs, even those without a big nest egg to be able to throw towards a down payment.).

Be careful that wanting to "protect the PR" should be wanting to protect the PR in his/her role as PR, NOT as the person wanting to buy the real property.  Too often, we attorneys do not pay sufficient attention to the fact that making the PR happy (on a personal level) might very well involve short-changing heirs.  In addition, the two hats worn by the PR (PR with fiduciary responsibilities and Real Estate Buyer trying to make his/her life better or happier by being able to purchase the property) might mandate that an independent attorney needs to undertake representation of the individual as a potential Buyer. AND, it could actually be the case that PR should NOT be able to purchase the property because of the inherent conflict between his/her two roles.

How many times do we see PR's who are occupying the Decedent's residence, prior to sale (and perhaps delaying the sale) expecting not to have to pay any rent for using the residence?  The same kind of mind-set can set in related to the PR's feeling that he/she has the "right" to be able to finagle a good deal, simply because he/she is the PR.  Remember the number one ingredient of many of the probates we handle, good friends:  GREED, which comes out in spades when MOM/DAD are no longer present to temper their sons' and daughters' tendencies towards acute selfishness.  Many times, the sons and daughters are, once again, transitioned back into childhood, in this regard.

Good luck.

Best Regards,

Doug Bratt

Douglas J. Bratt
Lawyer

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From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Melinda Grout
Sent: Monday, May 23, 2016 5:59 PM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] Probate: Sale of House

David,

I always have the client:

1- get certified appraisal
2- put it on the open market for minimum 30 days
3- communicate this to heirs, together with clear working of the numbers and how the agreed price is same as best case arms length sale with commission, closing costs, etc.
4- use 3rd party escrow

I'd love to hear how others protect PR...

Regards,

Melinda Grout
Law Office of Melinda K Grout, PS
17325 W. Main Street / P.O. Box 1360
Monroe, WA  98272
360-794-4322  / Fax: 425-744-6745

Emphasizing Estate Planning, Probate, and Elder Law
mkgroutlaw.com<http://mkgroutlaw.com>

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