Welcome friends, today we're discussing a very distinct topic – Estate Sales. Imagine discovering a rare antique or a vintage piece of art for a reasonable price. This isn't just wishful thinking. It happens at estate sales every day. But what are they? And how can they be an excellent investment choice in real estate? We'll explore Estate Sales, their finer nuances, and the unique opportunities they present.

What is the Probate Process? 

Tips For Probate Sale In Real Estate

When a person passes away, they may leave behind belongings, including real estate assets and other artifacts, collectively known as an estate. In Ontario, the person authorized to manage these assets is called the Estate Trustee.

Probate is the process in which the court is asked to grant someone the authority to act as a Trustee or confirm the authority of a person if the deceased has left a will. This process, which involves securing the Certificate of Appointment of Estate Trustee, ensures the legitimacy of the will, or in the absence of a will, appoints an administrator to oversee probate.

Well-taken-care properties              

I've had the opportunity to navigate several estate sales to assist my clients and will share what I've learned in the process. In my real estate career, I've visited hundreds of properties, but estate properties are particularly distinctive, especially when the current owners have lived there for 50–60 years, and the property is now being sold as an estate. These are pieces of real estate meticulously cared for by the original owners, generally well-Maintained and often in original condition. Sometimes, we see fifty-plus-year-old broadloom or original tiles in the kitchen, original cabinet hardware, and bathrooms with hand-sculpted wall tiles and vintage kitchen appliances with mechanical timers. All are quality items that have stood the test of time. Sometimes we see a sparkling clean 50-year-old stove. The properties speak volumes about the owners and how they have cared for their home, which is now up for sale.

Occasionally, I see basements with high-quality, wood-paneled wet bars and counters, crafted for recreation decades ago, now having completed their useful life and ready for a remodeling project. It's a surreal feeling to witness and see the whole 50–70 years unfold before your eyes. Every home has its own story.

Reasonable Price

From a buyer’s perspective, dealing with estate sales means emotions are often detached from the seller's perspective, as the executor or beneficiaries want to move on with business as usual after liquidating the asset. Moreover, these properties are often non-updated and sold in an as-is condition. This gives buyers a certain edge in negotiation, and the property could be settled at a reasonable or slightly below-market price.

Extra Due-diligence

The purchase agreement must be drafted with great care and due diligence. The probate process generally takes 4–6 months and may sometimes take longer. This depends on the timing when the property is listed for sale and whether the Certificate of Appointment of Trustee has been completed or is still in process. Most agreements will have longer closing dates, implicitly allowing for the probate proceedings to be completed by the time closing approaches.

Mitigation of Delays

In case of delays, it's wise to include a clause in the agreement to address this situation. A clause might be added to protect the sellers, stating that if probate isn't completed by the agreed-upon completion date, the closing can be extended to a further timeline with written notice to the buyer. This is crucial because if the closing date isn't met, there might be situations where the buyer, if renting, had given notice to their homeowner and now has to vacate their existing dwelling.

To resolve such scenarios, one option is for the seller, if unable to obtain probate even by the extended timeline, to let the buyer take possession of the property by furnishing an extra deposit and continue to live there, paying market rent during the wait period. All of this, along with the agreement, should be reviewed by solicitors for both the seller and buyer, who play a key role in safeguarding the interests of all parties involved. The agreement and completion process involves many hurdles but can be navigated successfully with the right planning and advice.

I hope we've learned something new about Estate Sales today. For any real estate goals you might have, reach out to our dedicated team here at Elixir and experience the difference. Take care, and talk to you soon!

Wish you all the very best! Reach out to our dedicated team at Elixir for any queries you have in Real Estate, and we will do our best to help.

Mudit Mehta 

Broker of Record

ELIXIR REAL ESTATE INC.

Off: 416-816-6001 | [email protected]