In case you are either looking to sell a property following the demise of a loved one or are planning to put in a bid for a property that’s up for executor sale, it’s imperative that you are informed about probate. Probate is the initial course of action in determining the division of an individual’s assets after their passing. Obtaining probate involves securing affirmation, from the Court Services, of the legitimacy of the deceased’s will. It’s important to be aware that currently, there’s a significantly long waiting period at the Probate Office. As of the 4th of March, they were dealing with requests sent in on October 21st of the previous year. When involved in buying or selling a property tied to a deceased’s estate, keeping in mind this delay is crucial.
Even though there isn’t much you can do to hasten the Probate Office’s proceedings, you can certainly make efforts to prevent causing unnecessary extended delays. The process requires patience. Post the death of an individual, usually a couple of family members are appointed as executors, according to Brian Dempsey of DNG in Stillorgan. Dempsey, who deals in properties across Foxrock, Mount Merrion, Goatstown, Leopardstown, and Kilmacud, states that almost 30% of the properties he works with are executor sales.
Dealing with probate also often means dealing with grief, Dempsey states, thereby acknowledging the executor role’s tough nature which often demands hard work and even harder decisions – circumstances which can easily amplify emotions. Any delay can exacerbate the already complex situation, particularly if the beneficiaries are awaiting the sale to settle debts, pay bills, or in cases of family disputes. According to Dempsey, patience is paramount in such circumstances.
Putting a house immediately up for sale may not necessarily facilitate the process but certainly intensifies an already high-stress situation, Dempsey advises. Therefore, he suggests families to follow the guidance of their solicitors. The correct time for sale is when your solicitor suggests it to be so, Dempsey asserts. Well-thought-out preparation ensures a calm atmosphere and assists in making the decision-making process comfortable for all involved parties.
Prior to the outbreak of Covid-19, paperwork for house sales, better known as grants of probate, were commonly approved within a span of three to five weeks following application submission, according to the Probate Office. It was also common to put a house up for sale while still awaiting probate. However, current probate applications are taking approximately six months to process, which could potentially lead to financial repercussions should you choose to prematurely sell a property.
“Waiting half a year can be too long for a potential buyer who has loan approval, warns Niamh Moran, Solicitor Partner at Carmody Moran Solicitors. A withdrawal from the sale might therefore come at this stage.
“If a sale fails, putting the property back on the market can prove challenging. The property could be seen as less appealing or problematic, lengthening the selling process,” explains Moran.
“It is advisable to secure your grant of probate before marketing your property.”
In instances where the deceased was a participant of the Fair-Deal scheme, care expenses have to be covered within a year to avoid incurring interest. The pressure of this requirement may push beneficiaries to sell hastily.
“Lawyers have on occasion had to request for probate deferrals and additional processing time,” shares Moran.
Unearth the deeds
Do you know the location of your childhood home’s deeds? Tracking these down is essential.
“Deeds can frequently be misplaced or drastically outdated,” says Moran.
“It’s fairly common for parents to have finalised payment on the mortgage yet left the deeds with the banking establishment,” she adds. Unfortunately, these deeds can sometimes be with a now-closed law firm.
“You might need to find out who took over the firm, or you may realise the deeds have been lost altogether and need to be recreated, a process which could potentially take up to four months,” informs Moran.
Plan for probate sales
In the case of probate sales, long-time property owners may have conducted various renovations over the years.
In the 1970s, the building regulations were quite different from today’s stricter guidelines, acknowledges Moran. It was common for homeowners to institute modifications like a sunroom, front porch, or covering a hallway. Despite no need for planning permission in the past, current sellers must obtain an architect’s opinion of their alterations’ adherence to the law.
A potential buyer will typically hire a surveyor post-agreement to confirm structural integrity. The surveyor will recognise any informal constructions and require evidence of lawful completion.
Moran advises, “Address these matters sooner rather than later as they may not be immediately evident until discussing with a legal professional.” In preparing to sell, it’s wise to employ a building expert in advance to ensure compliance or suggest the necessary steps required for it.
A Certificate of Energy Efficiency and demonstrating local property tax lawfulness are further requirements for sellers. Moran states, “Completing all paperwork before going to market makes for a smoother transition.”
When beneficiaries are spread out or living abroad, personal public service (PPS) numbers are needed. “In order to profit from selling a property, the transaction has to be registered with the Revenue, who will need to ensure everything is legitimate. Getting a PPS number can take as much time as obtaining probate,” elaborates Dempsey.
A property sale can be impeded without a PPS number. Dempsey has seen sales far advanced before the lack of a PPS number was detected, preventing the transaction from proceeding.
The process of preparing a loved one’s home for sale can be a challenging task due to the amount of personal belongings and memories attached to them. A house clearance firm, who ensure unwanted items are recycled or donated, could be a solution.
The family may mark items they wish to keep in a two-step process. Some furnishings, such as tables, chairs and beds, may remain in the house to make it more sellable, and can be removed post-sale, recommends Dempsey.
Three decades ago, individuals were likely to clear out an entire house and utilise most of its content. But now, you will observe them preserving only a few heirlooms, with the rest getting donated to charitable causes, as the speaker illustrates.
In circumstances where a house requires small renovations or a fresh lick of paint to prepare it for the market, the legal representative can facilitate an account using funds from the estate. This allows the executor to handle these costs.
Regarding insurance matters, it’s necessary for the executor to inform the insurance company when the policyholder of the house insurance has passed away. The insurer would then need verification from the solicitor about the executor’s identity, in order for the policy to be revised and maintained.
In instances where the house remains vacant until it’s sold, the insurance firm needs to be informed. Concealing this information might lead to the cancellation of your policy, while disclosure might actually decrease the coverage cost.
Frequent dialogue among the executor and the beneficiaries helps to keep operations running smoothly. While some beneficiaries might not be in a desperate hurry to receive their share from the house proceedings, others may want it instantaneously. Their views on a suitable sale price may also vary.
According to Mr Moran, it’s not mandatory for beneficiaries to be updated about every potential offer. However, once final offers have been received, it is considered best practice for the executor to share this information. Although beneficiaries have no role in approving these offers, their opinions must be considered by the executor. Thus, maintaining an open line of communication can expedite the process and reduce stress levels.
Lastly, for potential buyers considering a house that’s up for executor sale, it’s advisable to gather information about the probate stage early on. According to Mr Moran, if probate has not been granted, the date of submission to the Probate Office should be noted to avoid any delays. This is crucial as loan offers are time-sensitive, and with unstable interest rates, waiting for approximately half to a full year post confirming the sale can be extensive duration.