When purchasing a property, it`s important to remember that there are several potential pitfalls that can derail the transaction. One of these is the unfortunate situation where the seller dies before the exchange of contracts.
If this happens, the first thing to understand is that the contract becomes null and void. This means that the buyer no longer has any legal obligation to purchase the property and can back out of the deal without penalty.
However, things can get more complicated if the seller has a will or if they have joint owners of the property. In these cases, the property may need to go through probate before it can be sold. This can take months or even years to complete, which can be frustrating for a buyer who is eager to move forward with their purchase.
If the seller had a mortgage on the property, their estate will be responsible for paying off the outstanding balance. This means that the sale proceeds will go towards paying off the mortgage first, with any remaining money going to the seller`s heirs.
If the property was owned jointly, the surviving owner(s) will need to transfer their ownership to the buyer. This process can be complicated and time-consuming, so it`s important to work with an experienced real estate attorney to ensure that everything is handled properly.
In summary, the death of a seller before the exchange of contracts can throw a wrench into the works of a property transaction. However, with the right legal guidance, the buyer can navigate through this difficult situation and ultimately move forward with their purchase.
by gerard3d
Comentarios recientes