Probate Purchase Agreement and Joint Escrow Instructions: What You Need to Know
If you are in the process of buying or selling a home that is in probate, you will need to understand the probate purchase agreement and joint escrow instructions. These documents are crucial to ensuring that the transaction runs smoothly and legally. In this article, we will go over what these documents are and why they are important.
Probate Purchase Agreement
A probate purchase agreement is a legally binding document that outlines the terms and conditions of the sale of a property that is in probate. A probate sale occurs when a person passes away without a will and the property needs to be sold to pay off any outstanding debts or expenses. This type of sale can be quite complex and requires careful attention to detail.
The probate purchase agreement should include:
• The names of the buyer and seller
• The agreed-upon purchase price
• A description of the property
• The terms of financing, if applicable
• Closing and possession dates
• Any contingencies, such as inspections or appraisals
It is important to note that the probate court must approve the sale before it can be finalized. This process can take several weeks or even months, so it is important to be patient and work closely with your real estate agent and probate attorney.
Joint Escrow Instructions
In a probate sale, a joint escrow account is typically used to hold funds until the sale is completed. Joint escrow instructions are a set of guidelines that dictate how the funds in the account will be distributed. These instructions are typically written by the buyer and seller together and cover everything from the amount of the deposit to the distribution of the funds after the sale is complete.
The joint escrow instructions should include:
• The names of the buyer and seller
• The amount of the deposit
• The names of the escrow agents
• Instructions for the transfer of funds
• The distribution of funds after the sale is complete
It is important to ensure that the joint escrow instructions are carefully crafted and reviewed by both parties. Any mistakes or oversights could result in delays or legal issues.
Conclusion
Buying or selling a property in probate can be a complicated process, but the probate purchase agreement and joint escrow instructions can help to ensure that everything runs smoothly. These documents should be carefully crafted and reviewed by all parties involved to avoid any misunderstandings or legal issues down the line. If you are in the process of buying or selling a property in probate, be sure to consult with your real estate agent and probate attorney to ensure that you are on the right track.
