[WSBAPT] Transfer of house during probate - 2 heirs, 1 wants house - Deed?

Fri Sep 10 02:03:40 PDT 2021

  Law Office of
F.ANDREKITA SILVA
____________________________________________  

                                                  September 10, 2021

Kirsten,

If the PR’s have not yet done so, they should have the real property  
appraised.

If they wait until the house has been repaired and improved, it will  
be harder to go back and determine the value of the home at the time  
it was actually inherited or the date of death.

Is there a reason the buying heir can’t execute a promissory note in  
favor of the selling heir in order to secure the selling heir’s  
interest?  

Unless there are employment issues, the home is in disrepair, and the  
home has a huge mortgage on it, so that there are concerns that the  
bank won’t take a risk or that the buying party won’t qualify for a  
refinance, if the heirs are in agreement on one buying and the other  
selling, it seems like it’s prudent to have them conclude that  
transaction. 

So, they should agree on a current price (based on the appraisal or on  
the average of two appraisals if one heir wasn’t happy with the first  
appraisal). Buying heir should execute a promissory note with the  
terms of payment.  If buying heir will need time for the home to  
develop some equity in order to refinance again to pay off the selling  
heir, they can agree that the promissory note can be recorded after  
the first refinance. That will secure the selling siblings interest.

Big major repairs and home improvements are always stressful.  It is  
common for handshake agreements to go awry. If they agree on a price  
now but they don’t formalize the agreement in the form of a contract,  
other things can happen to make one heir or the another unhappy with  
the deal they reached- i.e., if there are problems with the  
construction and a contractor has to be sued, if the improvements were  
easy and fabulous and seller thinks they should receive more, etc. 

So, my vote would be that the heirs go about this in a  
straight-forward business- like manner but with time to pay the  
promissory note if needed.   

andrekita
Law Office of F. Andrekita Silva
1325 Fourth Avenue, Suite 2000
Seattle, Washington 98101
206-224-8288
www.seattle-silvalaw.com

Quoting Josh Grant <jgrant at accima.com>:

> In my experience this is very hard to accomplish unless there is  
> cash equal to the value of the house in the estate.  If you deed it  
> to both heirs, then both heirs have to borrow in order to get any  
> money.
>      
>                       JOSHUA F. GRANT
>
> P. O. Box 619
> Wilbur, WA 99185
> 509 647 5578
>          
>
>                 
>              FROM: Kirsten Samwel[1]
>        SENT: Thursday, September 09, 2021 1:18 PM
>        TO: WSBA Probate & Trust Listserv[1]
>        SUBJECT: [WSBAPT] Transfer of house during probate - 2  
> heirs,1 wants house - Deed?
>
>       
>
>                       Listmates,
>         
>        I have a probate where the two heirs are also the Co-PR's.   
> The main asset of the estate is the house.  The heirs have agreed  
> that one of them will get the house and will buy the other heir  
> out.  Problem is, the house needs a lot of work prior to the person  
> getting the house being financed for it.  The one heir needs to be  
> protected as to his monetary interest in the house and the heir  
> getting it needs to get it in his name for financing.  They do not  
> want to keep the probate open until the house is ready for  
> financing, so I was wondering, if I did a Quit Claim Deed from the  
> Estate (the house is paid for) to the two heirs as joint tenants  
> with right of survivorship, would that protect the heir getting  
> money as well as the heir getting the house, or does someone have a  
> better way to do this?  Any and all thoughts or suggestions will  
> truly be appreciated.  Thanks in advance.  
>                                                          Kirsten A. Samwel
>             Attorney at Law
>             Samwel Cousineau, PC
>             700 W. Evergreen Blvd.
>             Vancouver, WA  98660
>             Ph:  (360)750-3789
>             Fax:(360)750-3788
>             kirstensamwel at gmail.com[1]
>
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  andrekita
Law Office of F. Andrekita Silva
1325 Fourth Avenue, Suite 2000
Seattle, Washington 98101
206-224-8288
www.seattle-silvalaw.com
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