A home that remains in your estate upon your death may be transferred or sold per state probate laws. Probate is the process by which the contents of your will are verified and a judge gives permission to distribute assets according to your instructions. If you don’t have a will, Kentucky law will determine what should happen to your home or other property titled in your name.
Selling a home during probate
It’s not uncommon for real property to be sold during a probate proceeding so that proceeds from the sale can be split among your beneficiaries. A home may also be sold if whoever obtains it cannot afford mortgage payments or other costs associated with keeping the property. The sale will be overseen by the estate executor, and in many ways, the process of finding a buyer is similar to any other sale. The main difference is that any offer must be submitted to the court before the transaction can close.
Obtaining approval for the sale
After an offer has been submitted to the court, a notice will be sent to any interested parties alerting them to the proposed transaction. Anyone who wishes to oppose the sale will have 15 days to do so. Otherwise, the sale will proceed without the need for further court intervention.
Other issues to consider
Anyone who wishes to buy a probate home will need to make a down payment of at least 10%. Typically, a buyer will be allowed to make a down payment of 3.5% or less depending on the type of financing that they obtain. The executor will also need to have the house appraised prior to putting it on the market to ensure that the estate gets reasonable value for the property.