Can you sell a house before probate in Michigan? When dealing with the assets of a deceased loved one, it’s important to have a strong understanding of what you can and cannot do.
Failure to do so can result in some serious legal trouble. Something, I imagine, we all want to avoid.
The answer to this question is probably not. You probably cannot sell a house before probate in Michigan
I use the term “probably” to avoid any misinterpretation and misunderstanding of probate and real estate.
So, let me clarify… a home that is included in the estate for probate purposes cannot be sold before probate in Michigan.
On the other hand, homes that are passed to heirs or beneficiaries through other means, and therefore avoid probate, can be sold before probate in Michigan.
In this post, we’re going to explain in depth our answer for whether you can sell a house before probate in Michigan.
What Is Probate?
Probate is a formal, legal process for handling the estate of a deceased loved one. During probate, a Will is authenticated and an executor is appointed to handle the affairs of the estate.
A home that is included in the estate and passes through probate cannot be sold before probate. Prior to a probate pre-petition and an executor being appointed, nobody has a legal right to sell the property.
Before probate, you can’t do anything with the property other than maintaining it. You likely can’t even empty the house out before probate.
As we mentioned, the ONLY way to sell a home before probate is to make sure the home isn’t included in the estate for probate purposes.
The Major Issue: Reverse Mortgages
Generally, the folks who want to sell before probate and reach out to our real estate team are doing so because there is a reverse mortgage on the property.
They are under a time crunch.
A reverse mortgage becomes due 30 days after receiving a due payable notice from the lender. This happens pretty fast. Lenders are always tracking and scraping large amounts of data to track if, for example, a client dies.
If a lender sends a due and payable notice prior to you or an attorney filing the required paperwork to begin probate, you can find yourself with a lender demanding payment for the reverse mortgage while simultaneously having no rights to sell the property and satisfy the mortgage.
A situation like this could lead the mortgage company to take legal action against the property and start the process of foreclosure.
It’s sad, but it’s true. I had a client reach out to me recently who had a similar situation.
Kathleen’s (not her real name) grandpa passed away and his home had a reverse mortgage. Due to the grieving process and courts closing from Covid, the children started the probate process nearly a year later. They failed to open the probate in time.
The mortgage lender was auctioning off the home. These heirs will possibly lose out on a significant amount of equity in the home and the estate because they didn’t open probate fast enough AND they can’t sell before probate in Michigan.
While reverse mortgages are due within 30 days, it is possible to get an extension for up to a year. For example, many lenders will extend the deadline if you show effort to get the home sold. Meaning, the home is listed on the market.
Avoiding Real Estate Probate
The exact methods for avoiding probate are beyond our scope of practice and expertise as real estate agents. Instead, we will reference some material and research around the web.
Here are some vehicles for passing a house to an heir or beneficiary that avoid probate:
- Use a Trust
- Lady Bird Deeds
- Joint Ownership of the home
If you inherited a home through these means, then you can sell the home as soon as the property has been transferred to you. Since the home doesn’t go through probate, you can sell it whenever you want.
You can sell the home before probate in Michigan when you inherit a home through one of these means.
I had a client, Gary (name changed), whose mother passed away. He inherited the home through joint tenancy of the property. As a result, he was able to get the property on the market prior to probate being opened AND he sold it and distributed a share of the proceeds to his sister before probate closed.
Whatever the situation, it is possible to sell your house fast in Detroit.
So, How Do You Sell A House During Probate In Michigan?
The first step is determining proper authority and signatures for selling the home. A good real estate agent will ask questions and verify that the executor has proper authority to start the process of selling the home.
Next, it involves coming up with a plan and communicating that plan to all parties involved — from other beneficiaries to the attorney on your probate case.
It’s a sad time, but a good real estate agent explains what is going to happen, how it’s going to be done, and makes sure all parties are comfortable with the plan of action.
Getting the home ready for the market takes time. The right real estate agent can connect you to other services to help you get the home ready, such as junk removal companies or estate sale companies.
Sell Your Michigan Probate Property
So, can you sell a house before probate in Michigan? The answer is no. Not unless appropriate actions have been taken to avoid probate, such as a trust or lady bird deed.
If you have any questions about the legality of selling an inherited property, it’s best to consult an attorney. They can walk you through probate law and help you to understand the right actions for your estate.
When it comes time to sell your home, the team at the Dolinski Group can help in one of two ways. We offer quick-close, cash offers on homes. Or, one of our referral partner licensed real estate agents can work with you to sell your home through a traditional listing.
We can help you all across the state of Michigan — from Traverse City to Detroit to Grand Rapids to Alpena to Sault Saint Marie. Check out our probate real estate services before you get started selling your inherited home.
