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.
Probate has its roots in the realm of law, like almost all confusing real estate terms. A type of process by which to open and manage an estate for someone who has passed away who has assets is how probate is best described. Sometimes people go through probate to gain access to a deceased person's bank account of the key to their apartment, although the process differs from state to state. A will must be probated through a probate court before assets can be distributed accordingly other times.
When you've got a potential home buyer or an investor who wants to purchase real estate of someone who's passed away, a probate real estate deposit comes into play. The probate process likely has a hold on the property. Often enough if there is a home the executor of the estate will try to sell it to garner some money to pay off debts in estates that have no liquid assets and a lot of debt attached to them by way of credit card bills and other related expenses. Once the creditors have been paid, the remainder will be distributed to those named in the will, if any.
Each state is different and has varied laws on probate real estate deposits. California specifically requires ten percent of the entire home price to be put down as a deposit, so this might be difficult if you're strapped for cash. Of course, it's all well and good if you've got this additional money available, but it'll be a problem for your future home-buying prospects if you don't.
In the end, you need to make sure you cover all of your bases before purchasing a home. That means you also need to be aware of the identity of the property's seller. This means verifying who the seller is and, if they happen to be an executor of an estate of which the property is a part, you need to research the applicable state laws accordingly in this regard.
Probate has its roots in the realm of law, like almost all confusing real estate terms. A type of process by which to open and manage an estate for someone who has passed away who has assets is how probate is best described. Sometimes people go through probate to gain access to a deceased person's bank account of the key to their apartment, although the process differs from state to state. A will must be probated through a probate court before assets can be distributed accordingly other times.
When you've got a potential home buyer or an investor who wants to purchase real estate of someone who's passed away, a probate real estate deposit comes into play. The probate process likely has a hold on the property. Often enough if there is a home the executor of the estate will try to sell it to garner some money to pay off debts in estates that have no liquid assets and a lot of debt attached to them by way of credit card bills and other related expenses. Once the creditors have been paid, the remainder will be distributed to those named in the will, if any.
Each state is different and has varied laws on probate real estate deposits. California specifically requires ten percent of the entire home price to be put down as a deposit, so this might be difficult if you're strapped for cash. Of course, it's all well and good if you've got this additional money available, but it'll be a problem for your future home-buying prospects if you don't.
In the end, you need to make sure you cover all of your bases before purchasing a home. That means you also need to be aware of the identity of the property's seller. This means verifying who the seller is and, if they happen to be an executor of an estate of which the property is a part, you need to research the applicable state laws accordingly in this regard.
About the Author:
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.
No comments:
Post a Comment