Canadian Inv…, Home Buyer in Chandler Ginning, Gi...

What is probate sales ? And what is no contigency offer ? Thanks

Asked by Canadian Investor, Chandler Ginning, Gilbert, AZ Fri Nov 26, 2010

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Probate has been answered very well so I will dwell a little more on the no contingency aspect of your question.

I would caution you away from a no contingency property, the risks can be significant without contingency's. Some of the normal contingency's are: Home Inspections, Wood Infestation Inspections, Title Reports, Home Owner Association Documents etc. Any one of these can pose a significant risk to you the buyer and most contracts allow you as a buyer adequate time to do your due diligence on a property.

It is possible to negotiate in good faith and still reserve the normal contingency that provide you the buyer protection. We often buy property today with AS-IS clauses, but that does not preclude us from doing Inspections, getting clear title with out a bunch of liens etc.

Most every probate sale I have ever been involved in has contingencies in it.
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1 vote Thank Flag Link Fri Nov 26, 2010
Others have answered your two questions so here is a situation where you may use a "no contigency" to help a deal. I am a Canadian investor/agent here in Arizona. When I have found a house that I or one of my clients wants to purchase I work hard to negotiate the lowest possible price. There is usually a point during the negotiations where the offer to waive inspection can complete the negotiations.

Before I put this on the table I will have inspected the home several times and created a working budget of the renovation/repair costs that I can reasonably expect. This is not too hard to do since I actively buy, fix, renovate and sell houses for myself and several other investors.
1 vote Thank Flag Link Fri Nov 26, 2010
Probate is the process used at the court level to settle a deceased person's estate. Real estate being "probated" just implies that the court will have to either confirm or approve the sale (price, terms, etc.), and typically, if it is a standard probate, it will be subject to an auction at the court for the best price to the estate. Usually houses being probated are sold as-is and have certain conditions that the buyer's must abide by, e.g., putting up a larger deposit, etc. Email me for additional information.

J. Mario Preza, CRB
dre. 00668667
1 vote Thank Flag Link Fri Nov 26, 2010
A probate sale happens when the owner has passed on without a will. When purchasing the property it may take a little longer than usual to get a response to your offer, not always but sometimes.

A contingency is most often used in an offer when the buyer is obtaining a mortgage or has another property to sell. The buyer may need to sell his property before he can qualify to purchase the home that he is making the offer on.
1 vote Thank Flag Link Fri Nov 26, 2010
No contingincy sale simply means your offer can not contain any contingincies such as home inspection or subject to obtaining a mortgage. They are usually cash sales that close quickly. People getting amortgage can make an offer, but the deposit is non refundable if you get denied for a mortgage.

With a probate sale, most oftemn someone passes away without a will or with a will that has been contested by the hiers. The court then must approve any offer that comes on for that property to approve it.
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1 vote Thank Flag Link Fri Nov 26, 2010
A probate sale is when the owner of record on a home dies and leaves the property behind. The court then has to proceed with the probate process to administer the last will and testament of the decedent. Once the last wil and testament are probated and recorded the property can be sold.
A no contingency offer is, in most cases, an as-is cash offer which has no terms or conditions for sale.
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1 vote Thank Flag Link Fri Nov 26, 2010
Probate will occur even if you have a will. Intestacy is the name of the situation where someone dies without a will - in which case the State you live in has a formula for dividing your assets among your next of kin. Probate comes from the latin verb "probari" which means to prove. The beneficiaries of your last will and testament receive the items you have left them after the court supervised probate process establishes that the decedent has uncontested ownership. Notable exceptions to this process are items that pass by beneficiary designation, such as life insurance proceeds and private pension accounts (IRA's, Keoghs) and Jointly Titled accounts (with the right of survivorship) such as many bank accounts - or a house. It wouldn't be unusual for an intestate individual to leave an estate where the executor and beneficiaries wish to liquidate assets, such as a home, in order to facilitate the payment of expenses and the division of assets among beneficiaries. Obviously, there can be legal questions involved in these matters that are outside the scope and expertise of most Real Estate Agents and expert advice from a qualified Estate Attorney would be suggested.
0 votes Thank Flag Link Mon Jan 3, 2011
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