Probate sales offer several advantages:
1. No Disclosure Statement Required
The estate is not responsible for complying with California’s Real Property Transfer Disclosure Laws. However, Executors, Administrators, and Realtors have an obligation to disclose known defects to buyers.
2. No Reports
The estate is not obligated to inspect the property or to provide reports such as: structural, pest control, contractor’s, or rook reports. The buyer makes an offer based on their own physical inspection and not on any representation of the seller or seller’s agent
3. “As Is” Sale
An appropriate interpretation of “As Is” assumes that the Executor or Administrator has not investigated the condition of the property and the buyer must request and perform an investigation they want. If the buyers does not make any request, then the buyer is responsible.
4. Condition of Property
With the regular sale, the sellers represent that, to the best of their knowledge, the electrical, plumbing, heating, sewer system, built-in appliances, roof and all other fixtures are in working order. Furthermore, the seller is liable to maintain them until possession is delivered to the buyer.
During probate, however, the property is offered (as per California law), “As Is” without representation, warranty, or covenant of any kind, implied or expressed. Therefore, the estate is not liable as to the condition of property or its maintenance.
5. City and County Transfer Tax
By custom, the buyer is required to pay the tax. The tax amounts to one-half percent of the sales price. During a regular sale, the seller pays the tax.
Are you looking to sell a home in probate? Contact Brian J. Lewis today.
