You may have heard the ‘probate’ about properties, but many people are ignorant of its true implication. Whether you’re the buyer or seller of the property, you need to fully understand the workings of probate insurance.
So, what does ‘probate’ mean? It is a legal term that covers everything to do with processing and managing the estate of a deceased person. The estate can be a probate property, which means it is a home belonging to a late person.
It can be challenging to sell a probate property and that’s why it’s important to have a plan of action. That way you can reduce the stress involved in the process. Here’s a brief breakdown of the steps you can take to make the process seamless for you:
How to sell probate estate
The foremost step to take will be to legally dispose of the property so that you can decide if you will need a Grant of Probate. The document won’t be necessary if the seller is a surviving spouse of the deceased and the property was listed under both of their names. In a case where you need a Grant of Probate to sell the estate, it is important to obtain it quickly.
Without it, you may not be handed the responsibility of handling the departed’s will and probate insurance. However, it has been shown that the pandemic has created the need for an online probate process to handle the increasingly large number of applications.
You can properly dispose of the probate estate and process its insurance when you have obtained Grant of Probate. There will be several forms that you will handle since you are in charge of the will’s execution, depending on the peculiarity of the estate probate administration, and you can make it more convenient for you by making sure that everything is in order (like disposing of the furniture), before placing the for-sale sign on the property.
To prevent your emotions from getting the better of you in making key decisions such as whether to sell or rent the probate estate, you can hire professionals for that.
How to purchase probate estate
As a person looking to buy a probate property, you can get a good price for it. However, you need to do your homework on the estate to prevent some concerns that may arise after the purchase.
You should make the necessary research on the property and not rely on the person-in-charge of the probate estate’s administration since their knowledge would likely be limited. Another relevant step to take as a buyer is to survey the property to ensure that there are no hidden costs of repair.
The importance of probate insurance
The executor of the probate property is responsible for informing the insurance company of the demise of the previous owner. Upon the notice, the policy providers will usually transfer the probate policy to the new owner’s name so that the contract applies to them. Additionally, if you’re the seller, then you should make sure to inform the policy provider as quickly as possible since the home will be vacant for some time.
If the period of the property’s vacancy will extend beyond a month before the new owner moves in, then the insurance company will need to make the necessary changes to the original policy.
In most cases, you will need to update your contract with unoccupied property insurance. If you do not do that, your claim may be denied from being paid out in the event of an incident.
Before buying or selling a probate property, you should also be fully knowledgeable of the validity of the home insurance. Asides from leaving the house empty for long, several things can violate your probate insurance policy. One of them is the failure to ensure the basic security of the home. That covers failing to close your doors and windows with all the locks available, and the policy provider may refuse your claim based on your negligence.
Likewise, you should cross-check whether other security measures such as burglar alarms or CCTV, are installed or working. This is especially important since they must have been mentioned in the insurance policy if the departed person had them installed. If you as the buyer decides to uninstall the security measure, then you must inform your insurance company.
As the executor of the sale, you must ensure that the safety measures are not tampered with until the ownership of the property changes, to preserve the policy.
Overall, confirming the validity of probate insurance is undeniable as it can be easily nullified by some factors.