The answer to the often-asked question “Can a house be sold while it is in probate in Omaha?” is … “Yes!”
But you must adhere to Nebraska’s rules and regulations when doing so. The probate court will monitor each step and all aspects of the sale, and if you’re the executor, you, too, must monitor and approve all the terms of the sale. It can be a complex process, but understanding it should make the sale a little smoother.
If the decedent’s will designates a specific person as the executor and that person is willing to act in that capacity, then he or she will be appointed as the official executor. If on the other hand, no one has been designated as executor in the will, then the court and/or other relatives will appoint a near relative to act as administrator.
Property Appraisal Needed
The next step is to have the property appraised. But be sure to select an appraiser who is licensed and reputable. The Nebraska Real Property Appraiser Board is a good place to look for this information. The property must sell at a price that is at least 90% of the appraised value, so you need an appraiser who can get it right.
Sale of the Home
You can begin this process by having your agent list the house on a multiple listing service so buyers will know it’s a probate sale.
An interested buyer will make an offer on the home, along with a 10% deposit, an offer that you can accept or reject. If you do accept it, the offer is then subject to court confirmation. You must submit the offer through your probate attorney to the court for confirmation. If everyone is in agreement, then a date is set for the sale to be finalized in court.
When the offer on the house in probate has been accepted and confirmed by the court, a Notice of Proposed Action must be mailed to all the heirs. This document states all the terms and conditions of the proposed sale. Heirs then have 15 days to review the notice and raise objections, if they have any. If the heirs have no objections, the sale can go forward without a court hearing.
Overbidding the Original Buyer’s Offer
Now, here’s where it gets a little complicated. Before the court confirms and approves the original buyer’s offer, the judge will ask those present in the courtroom if any of them would like to bid on the property. If no one does, then the sale proceeds in the standard fashion mentioned above.
If, however, there is an overbid, the original buyer’s 10% deposit must be refunded before the new sale at the new bid price can proceed. When the overbid is accepted, the new buyer must then put up a 10% deposit, which is required to be a cashier’s check. This check for the accepted overbid deposit is presented to the executor/administrator at the winning bidder’s acceptance hearing.
Upon court confirmation and approval, a contract can then be signed. But it’s a specialized kind of sale contract because it can’t have any contingencies, and escrow closes soon after the hearing – usually within 15 days.
As you can see, there are some complicated rules for selling a house while in probate. It’s definitely possible to do, but it’s advised to consider contacting an attorney for more specific help.