Purchasing a property from a deceased estate is generally an excellent investment. However, if you are considering purchasing a property from a deceased estate, you should know what to expect, as the process can be complex and time-consuming.
Once the Letter of Executorship is issued by the Master of the High Court, the appointed Executor of the estate can start with the administration process of the deceased estate. The sale or transfer of a property forms part of the Executor's administrative duties.
The Executor must act in the best interest of the heirs when administering the deceased estate. This means that the property must be sold for its fair market value, irrespective of whether a real estate agent is assisting with the sale or not. There are some pitfalls when purchasing a property from a deceased estate, mainly the formalities that must be followed. One of the formalities includes the consent from the Master of the High Court which must be granted.
Once a written offer to purchase is signed between the purchaser and the seller, the signed agreement is given to the conveyancer who will manage the property transfer process. The conveyancer must obtain the written consent of each heir in the estate, which will be submitted along with all other supporting documents to the Master of the High Court.
Before deciding on the sale, the Master will examine the necessary documents. Buyers and sellers find it frustrating that the Master's office lacks a predetermined turnaround time for providing the consent. This part of the sale process is crucial and therefore all buyers need to understand this additional suspensive condition.
It is strongly advised that due to the complexity of buying a home in a deceased estate, having a dependable professional for assistance can make all the difference.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.