We have found a townhouse in Clinton Hill that we like very much. It is an estate sale property that is still in the process of going through Surrogate Court (as far as I understand it) to have the executor named. We have made an offer on the property, which the seller's agent seemed to think was at least worth entertaining. He explained that once the house clears the court, they'll either get... [more]
We have found a townhouse in Clinton Hill that we like very much. It is an estate sale property that is still in the process of going through Surrogate Court (as far as I understand it) to have the executor named. We have made an offer on the property, which the seller's agent seemed to think was at least worth entertaining. He explained that once the house clears the court, they'll either get back to prospective buyers with a counter-offer or accept an offer. We have been waiting for weeks, and the agents contact us saying they still haven't heard from the court. They originally said the court had hoped to be done by end of January (though they expected a wait, as well.)
We are in the middle of a grueling house-hunt in Brooklyn, and would like to at least know whether our offer can be accepted and a contract signed. We'd be ok with waiting if we at least knew yea or nay on that part and could move on if it were to be sold to another buyer (and I realize these things are shaky as it is.). The seller's agents are a very small operation and the heirs/sellers don't seem particularly legally savvy, either.
My question is, would it be possible for the seller (or would-be executor, or whatever party will be responsible) to accept an offer and sign a contract with language that it is contingent on the process being completed? In other words, can a contract be entered into before the formal appointment of an executor by the surrogate court?
If so, how do we approach the seller's broker with this proposal?
I asked our attorney but haven't heard back yet. Will ask again. But any insight from the knowledgeable folks in this community would be appreciated. We really want to buy this house and hate being in limbo like this.
Thanks!!
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Response by uptown_joe
almost 13 years ago
Posts: 293
Member since: Dec 2011
Here's the issue -- who would sign such a contract on behalf of the estate? Without an executor, I'm not aware of anyone who would be authorized to do so.
The only alternative might be for the likely executor to make a personal contract with you that if s/he becomes executor that s/he will act on behalf of the estate in a certain way (i.e. to accept your offer and sell you the house) -- but I can't imagine that would get past many lawyers as it probably violates statutory requirements that the executor act on the estate's behalf (not their own), without side agreements, etc.
So my guess is you're stuck waiting (or going elsewhere...).
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Response by jnnj
almost 13 years ago
Posts: 46
Member since: May 2009
No contract allowed until executor or administrator is appointed - and even then, it will depend on the will - for instance, the townhouse could have been left to an heir. In addition, and assuming it can be sold, you may also have to wait for a professional appraisal to be done - the executor/administrator should have this done for tax purposes and to protect themselves in the event an heir claims the sale price is too low.
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Response by cityrat
almost 13 years ago
Posts: 15
Member since: Jul 2011
Thank you for your advice. Yes I guess that's the case here, no one is authorized if there is no executor.
There *IS* in fact an heir, she is the seller here, I believe. She's staying in the house and certainly doesn't seem to have any objections to selling it. From what I can tell she's aware of the surrogate court process and it doesn't seem to be concerned about things not going in her favor?
We're kind of wondering what is holding up the process, there could be some issues there but of course the broker doesn't share this info with us (though he seemed to think it wouldn't be held up for any particular reason and didn't mention any drama or issues). I'm really sick of the waiting but we absolutely love the house. We're still looking but it would be great to know one way or another–but i can't see any way of speeding it up.
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Response by hsg9000
almost 13 years ago
Posts: 95
Member since: Jan 2013
"There *IS* in fact an heir"
"she's aware of the surrogate court process and it doesn't seem to be concerned about things not going in her favor"
People sometimes assume they're heirs without actually knowing they are. I know of a recent case where a child of a deceased woman moved into the deceased's house before the funeral had even be held and listed the property with a broker who didn't do his homework. An offer on the property was accepted by the child who assumed he was the heir. It turned out, however, that child had been specifically disinherited and had no right to list the property.
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Response by drdrd
almost 13 years ago
Posts: 1905
Member since: Apr 2007
NEVER fall in love with a property before you own it. Keep looking.
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Here's the issue -- who would sign such a contract on behalf of the estate? Without an executor, I'm not aware of anyone who would be authorized to do so.
The only alternative might be for the likely executor to make a personal contract with you that if s/he becomes executor that s/he will act on behalf of the estate in a certain way (i.e. to accept your offer and sell you the house) -- but I can't imagine that would get past many lawyers as it probably violates statutory requirements that the executor act on the estate's behalf (not their own), without side agreements, etc.
So my guess is you're stuck waiting (or going elsewhere...).
No contract allowed until executor or administrator is appointed - and even then, it will depend on the will - for instance, the townhouse could have been left to an heir. In addition, and assuming it can be sold, you may also have to wait for a professional appraisal to be done - the executor/administrator should have this done for tax purposes and to protect themselves in the event an heir claims the sale price is too low.
Thank you for your advice. Yes I guess that's the case here, no one is authorized if there is no executor.
There *IS* in fact an heir, she is the seller here, I believe. She's staying in the house and certainly doesn't seem to have any objections to selling it. From what I can tell she's aware of the surrogate court process and it doesn't seem to be concerned about things not going in her favor?
We're kind of wondering what is holding up the process, there could be some issues there but of course the broker doesn't share this info with us (though he seemed to think it wouldn't be held up for any particular reason and didn't mention any drama or issues). I'm really sick of the waiting but we absolutely love the house. We're still looking but it would be great to know one way or another–but i can't see any way of speeding it up.
"There *IS* in fact an heir"
"she's aware of the surrogate court process and it doesn't seem to be concerned about things not going in her favor"
People sometimes assume they're heirs without actually knowing they are. I know of a recent case where a child of a deceased woman moved into the deceased's house before the funeral had even be held and listed the property with a broker who didn't do his homework. An offer on the property was accepted by the child who assumed he was the heir. It turned out, however, that child had been specifically disinherited and had no right to list the property.
NEVER fall in love with a property before you own it. Keep looking.