Selling a House in Probate South Carolina
Unfortunately, when a loved one passes, their estate typically goes into probate proceedings. This process is all about validating the estate’s accounts and dispersing them to the appropriate individuals while taking care of any costly debts from creditors that the deceased left behind. A typical component of any personal estate is one or more homes.
If you’re inheriting a South Carolina home through probate, you’re likely worried about affording the associated property taxes and upkeep of the home. Fortunately, you have the ability to sell the South Carolina home during the probate timeframe. This can help to remedy these added costly fees and stresses on top of dealing with the death of a loved one.
- Probate Sale Meaning South Carolina
- Probate Process for Selling Real Estate in South Carolina
- When Can the Executor Sell the Probate Property in South Carolina?
- Can You Sell a House Before Probate is Complete in South Carolina?
- Do You Need to Go Through Probate to Sell an Inherited House in South Carolina?
- South Carolina Probate House Sale Issues
- Options You Can Consider When Selling a Probate House South Carolina
- Probate House Sale Frequently Asked Questions
Probate Sale Meaning South Carolina
A probate sale is like any other home sale, except that it comes along with more complexities and costs. There are two main types of home sale processes that can occur in South Carolina throughout probate. These are formal and informal. All deals are to be considered formal unless there is a joint tenancy with rights of survivorship. Usually, a surviving spouse, parents, or siblings that are also listed as the house’s owner qualify.
During an informal sale, the selling process is much less stringent. After a personal representative or executor is appointed, they receive Letters of Testamentary that give them authority to list and sell the South Carolina home’s deed. During an informal sale, the courts are no longer involved after the Letters of Testamentary are received.
During a formal sale, the process is much more complex and requires a lot of advice from the court. First, a personal representative is designated through the estate affidavit. They must seek out a professional real estate appraisal value of the titled house, petition the courts to sell the home, get a purchase contract approved, and go through the overbidding process at the court hearing.
Probate Process for Selling Real Estate in South Carolina
After a loved one passes, taking care of distributing their estate assets and paying off their debts to lenders becomes a top priority. Many times, the deceased can leave behind real estate property that is to be sold to pay off a mortgage or other expenses. The selling process is strictly outlined in [market_sale] to ensure the utmost care of the house and the deceased one’s willed beneficiaries.
1. Filing for Probate with the Local Court
After a person passes, their surviving estate must be dealt with in a fair manner. This is why the probate procedure has been established. It’s all about validating a person’s will and properly distributing their assets among their beneficiaries according to their specific estate planning efforts.
To start off the process, the testator of the dead person’s testament or their family can initiate the probate procedure with the county clerk’s office. The person initiating probate has to supply the actual testament of the deceased person and any other relevant documents requested by the ruling court.
2. Court Appoints an Executor
The person in charge of dealing with the estate is the perished person’s executor or personal representative. In the event of a testament, there is typically a commissioner of the estate named. The court can officially appoint that administrator and give them the legal right to handle the perished person’s estate.
In the event that there is no testament information or certificate, the court will appoint its own administrator, and the process will be deemed an intestate estate. This could be a family member or close friend who applies, or the court may appoint one of its own court representatives to handle the estate.
3. The Deceased’s Estate Gets Sold
Once an administrator has been named, the probate procedure can get started. The administrator will take care of selling real estate titles and other assets of value. They will also handle paying off any liabilities the perished owed via the profits from the sale of valued assets.
When Can the Executor Sell the Probate Property in South Carolina?
Before the designated administrator may sell a house, they must petition the court to do so. This is considered an intent to sell, and the court can typically require that a professional real estate appraisal be performed on the house prior to giving the administrator authority to list the house for sale to the public.
Once the administrator receives approval from the court, they can start to list the house. In the event that the house is being sold under the informal selling process, the administrator can execute a contract with a buyer and sell the South Carolina home. However, if it’s formal, there are many key steps that must be taken along the way.
First, any offer that the administrator may like to accept must meet the minimum amount established by the probate court. Typically, the probate court can only accept offers that are 90% or more of the appraised price of the house. Once an offer gets approved by the court, a court hearing is scheduled.
While the buyer and sale price are technically named in the purchase agreement, it doesn’t always mean that the initial buyer can end up owning the house once the sale is closed. During formal probate, a court hearing is held to finalize the contract and accept any overbidding. At this public hearing, anyone who would like to bid over the initial offer accepted on the home may do so.
The judge can typically set a minimum overbid amount that anyone bidding to buy houses must increase their bid by. After all the bidding is completed, the person who bids the highest is given authorization by the court to officially purchase the house. The job of the court is to get the most income from the real estate house as possible.
Can You Sell a House Before Probate is Complete in South Carolina?
This procedure can last eight months or more in the state of South Carolina, and it can be quite confusing for those who don’t have experience handling it. One common question that many beneficiaries ask is whether or not they can sell a home during the probate procedure. The simple answer is yes, you can.
However, it’s important to realize what happens after the home is sold. The heirs don’t directly get the proceeds right after the sale. Rather, the money goes into an escrow account that the administrator handles. After the perished person’s outstanding creditors are paid and costly real estate commission fees are settled, the money in the escrow account is dispersed to the rightful beneficiaries of the estate.
Do You Need to Go Through Probate to Sell an Inherited House in South Carolina?
In most cases, you’ll have to go through the entire probate business to sell an inherited South Carolina house. However, there are two instances where probate can be avoided after a person dies. First, the descendent must’ve put their estate in a living trust before they passed away with the help of a licensed attorney.
This relinquishes their personal ownership of the house. The living trust is owned by the trustees listed. Once the person passes, the living trust is owned by the remaining named trustees. Many descendants opt for a living trust to help reduce inheritance tax, capital gains tax, and other forms of taxation for their trustees. It’s important to note that owing debts and properties going into foreclosure can hinder this direct ownership.
The second option to avoid probate is to have joint tenants with the right of survivorship. This is most common for married couples who purchase a home together. As long as their name is listed as a joint tenant with the right of survivorship, the real estate property automatically transfers to the name listed as a joint tenant.
South Carolina Probate House Sale Issues
When you attempt to sell a South Carolina home that is in the validation proceedings, it can be quite daunting for both you and potential South Carolina home buyers. All along the way, the court has to approve the sale, which can take a lot of time. Most probate court sales can take multiple months before they are approved by the court. Many home buyers may not be interested in waiting for this lengthy sales process.
Another common issue with most probate court sales is that they require an overbidding process. Even if there is a buyer for the house, they can be outbid during the overbidding process at the court hearing. Many prospective home buyers are not interested in signing an offer with the caveat that they can be outbid later on.
Options You Can Consider When Selling a Probate House South Carolina
When you find yourself inheriting a property through the probate process, you may determine the best thing for you is to sell it. There are a few different options that you have when it comes to selling a South Carolina home.
Listing the Probate Property with a South Carolina Real Estate Agent
When most people think of selling a property, their first step is to talk to a local real estate agent. Realtors have knowledge about selling and are more capable of negotiations than the average individual. However, it’s imperative that you understand both the pros and cons of using a real estate agent.
- Experience in Selling Homes
- Handle All Contracts and Paperwork
- Not All Agents Do Probate Sales
- Must Pay Realtor Commission Fees
Selling the Inherited Property to a Family Member in South Carolina
Another option to sell a home during probate is to sell it directly to a family member. This can help to decrease the hassle of dealing with real estate agents and multiple offers.
- Home Stays in the Family
- Quicker Buying Process
- May Receive a Lower Purchase Price
Selling a South Carolina Probate House As-Is to a Cash Home Buyer
Another great option for selling a home that you’re inheriting via the probate process is to find an all-cash buyer. Many companies can offer to buy your home in as-is condition for all cash so that you don’t have to do any upgrading of the estate.
- Hassle-Free Sales Process
- Can Sell As-Is (Even with Belongings Inside)
- No Repairs Needed
- May Receive a Lower Purchase Price
South Carolina Probate House Sale Frequently Asked Questions
Whether you’re looking to sell an inherited South Carolina house or mobile home, there are many likely questions that are popping into your mind about how the entire procedure works. We’re going to help expand your knowledge about selling probate houses by answering some of the most commonly asked questions below.
Can You Sell a House Without Going Through Probate in South Carolina?
There are only two different methods for avoiding probate in South Carolina. First, the property can be put into a living trust so that it passes directly to the trust’s named beneficiaries after a person passes away. Second, the property can be owned via a joint tenancy with rights of survivorship. After death, the joint tenant with survivorship rights directly receives ownership of the entire property without going through probate.
Can You Live in a House During Probate?
There are no laws restricting who can live in a house while it’s going through probate. Since probate can take over eight months to complete,
it’s a good idea to have someone living there. They can keep it in good condition and handle any maintenance needs before the home is sold. It’s also advisable to get insurance on the property during probate.
Can You Empty a House Before Probate in South Carolina?
Since the probate process can take, on average, eight months or more to complete, it’s logical to wonder if you can remove belongings from the property. The simple answer is no. All of the belongings that are a part of the estate should be left in place until probate is completed. This ensures that all the perished person’s property is properly distributed upon their passing.
How Long Does It Take to Sell a South Carolina House in Probate?
In general, it can take anywhere from eight months to over a year to sell a home during probate. You can expect it to take a couple of months for the court to appoint the executor and authorize the property to be listed for sale. After entering into a sales contract with a potential buyer, it can take another couple of months before the final court hearing, where overbidding may take place.
Do All Heirs Need to Agree to Sell South Carolina Inherited Property?
Sometimes a decedent’s estate can be given to multiple heirs. In this case, some may opt not to sell the home while others may be for it. To easily authorize the sale of the property, all heirs do need to agree. However, if one or more disagree, the heir(s) intent on selling can file a partition action. According to this action, the decision to sell the property is allowed solely by the court.
Easiest Way to Sell a House in Probate
Selling an inherited home during the probate process doesn’t have to be difficult. Rather, than enlisting the help of a cash-buying professional like Upstate Home Offers, We know that you’ve been struggling to find the answers to your questions, and we want to let you know that we can help to take the burden off your shoulders and get all of your questions answered thoroughly. Just contact us and we’ll be more than happy to help.
Selling an inherited home for cash is the easiest way to relieve yourself of a property in South Carolina, Like, Charleston, Columbia, North Charleston, Hilton Head Island, Mount Pleasant, Hardeeville, and Bluffton.