The Special Language You Must Put in Every Contract when Buying Probate Property

Today you're going to learn the special language you must put in every contract when buying probate property.

Probate investing is pretty straightforward in my state. However, there is one sentence that you need to add to every contract when buying a house that's in probate. This will help you avoid potential problems down the road.

The Process of Buying Probate Property

I've been investing in probates for a very long time now and generally speaking, buying probate property is no different than buying any other property.  The deal goes smoothly most of the time.  But ... every now and then, that just isn't the case.

There is always an exception to the rule isn't there?

What's the one-sentence you must-have in the contract to buy probate property?

Here is a Perfect Example for You

A few years ago I put a probate property under contract exactly like I had always done. I assumed what the executor and the heirs told me was accurate, and that was that the house was ready to be sold.  Now I don't think these folks meant to be misleading, but they had really made a mess of things when it came to settling the estate.  They were trying to do everything themselves which almost never works out the way it should without the help of an attorney.

How did I discover this problem?  I didn't. My closing attorney discovered it out when he ran the title.  This is one point I want to make.  If there is a problem, your attorney or title company will let you know.

This deal took 5 months and many extensions in the contract before we finally made it to the closing table. It was getting those extensions that became a problem for me.  Every time you get close to the end of the time specified in your contract you either need to be ready to close, or you need to get a contract extension. That is unless you have added special language to your contract, and that's what I want to go over today.

Are You Required to Use an Attorney to Settle an Estate?

There is no law saying you must use an attorney, and some people choose not to. It's been my experience that using an attorney is the one way to avoid most of the common problems I see when the family tries to do it themselves.  A good attorney will save you a lot of time and even more headaches.

*Many thanks to Harry Borders of Borders and Borders who is my attorney here in Louisville, KY. They take care of virtually any problem that comes up with my closings. They are also known for educating investors in this area so that they do things the correct way. When it comes to working with probates, having an attorney involved in the closing is definitely a plus.

 

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