The answer to the often-asked question “Can a house be sold while it is in probate in Chicago IL?” is “Yes.”
But you must adhere carefully to your state’s pertinent rules and regulations. The probate court will monitor every step and all aspects of the sale, and if you’re the executor, you, too, must monitor and approve all the terms of the sale. It can be a complex process, but understanding it will make things a little smoother.
Can A House Be Sold While In Probate In Chicago IL?
Appointment of Administrator/Executor
One of the first steps in the probate process is to assign the role as executor of the estate. If the decedent had a will in place then typically this document would specifically state who shall be designated the executor of the estate. In the event the decedent didn’t have a will in place or have a will that specifies who should act as the executor then the court will be responsible for designating an executor. Typically, the court will follow the state of IL legal statutes that generally seek to find the closet blood relative of the decedent to act as executor of the estate.
Appraisal
The next step is to have the property appraised. But you must make sure the appraiser you choose is a licensed, reputable appraiser. The property must sell at a price that is at least 90% of the appraised value, so you need an appraiser who can get it right.
Sale
This is the step where the answer to “Can a house be sold while it is in probate in Chicago IL?” begins to become a reality. How the course of the probate process plays out from here depends on the specific circumstances of your situation. Your estate attorney will be able to advise you on when the property is able to be sold. Once your attorney has given you the green light to sell the property you can get to work on finding a buyer for the property.
Be sure to ask your attorney if the sale of the property will require court approval so that you can communicate the appropriate steps required to your buyer up front. Once you have found buyer for the property draw up the purchase and sale agreement for the property and have your attorney perform the next required steps in the process to complete the sale.
Overbidding
Now, here’s where it gets a little complicated. Before the court confirms and approves the original buyer’s offer, the judge will ask those present in the courtroom if any of them would like to bid on the property. If no one does, then the sale proceeds in the standard fashion mentioned above.
If, however, there is an overbid, the original buyer’s deposit must be refunded before the new sale at the new bid price can proceed. When the overbid is accepted, the new buyer must then put up a deposit. This amount for the accepted overbid deposit is presented to the executor/administrator at the winning bidder’s acceptance hearing.
Upon court confirmation and approval, a contract can then be signed. But it is a specialized kind of sale contract because it cannot have any contingencies, and escrow closes soon after the hearing, usually within 15 days.
As you can see, there are some complicated rules for selling a house while in probate. It is advised to consider contacting an attorney for more specific help.