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Downriver process

Inherited a Downriver Home? How a Probate Sale Works

By David Goad · · 6 min read

Who can sign to sell an inherited Downriver home?

The personal representative of the estate, acting under the letters of authority the probate court issues. Michigan law says that to get the powers and duties of a decedent’s personal representative, a person must be appointed by the register or by court order, must qualify, and must be issued letters. Michigan’s standard letters of authority form, PC 572, opens by telling the person they have been appointed and qualified as personal representative and are authorized to perform all acts authorized by law, unless exceptions are listed.

Michigan law also says a personal representative’s duties and powers commence on appointment, and that the issuance of letters starts the estate’s administration. Ask your probate attorney when the letters will be issued and what the personal representative can do before and after that date, and plan the listing around the answer.

This post follows the Wayne County Probate Court’s published process. If the estate is handled by another county’s probate court, check that court’s process instead.

If the house is the main thing left in the estate, the family may want to list it quickly to stop paying the taxes, insurance and utilities on an empty home. Before anyone signs a listing agreement, ask the probate attorney who has authority to sign and when.

What can the personal representative do with the house meanwhile?

Quite a lot, unless the letters, the will or a court order says otherwise. The Michigan section that lists selling estate property also lists insuring estate property against damage, loss and liability, making ordinary or extraordinary repairs, paying taxes and other estate expenses, and hiring an attorney or other help with the administration. A separate section gives the personal representative an absolute owner’s power over title, held in trust for creditors and others interested in the estate.

That is why the house prep decisions, like whether to fix the roof, clean out the basement or list it as-is, sit with the personal representative, ideally after talking with the heirs. My guide to preparing a Downriver home for sale walks through those choices.

The house will also show up in the estate’s paperwork. The Wayne County Probate Court’s fiduciary training and the letters of authority form both describe an inventory of the estate’s property, with values, that must be filed within 91 days. The form measures that from the date the letters are issued, for a supervised administration. Ask your probate attorney which inventory deadline applies to your estate, since the house and its value will be part of it.

Does a Wayne County probate sale need court approval?

Not unless the letters, the will or a court order restrict the sale, or unless the personal representative is the state or county public administrator, in which case Michigan law requires court approval of a real property sale. Otherwise, the letters are where to look. Michigan law says that until the appointment ends, a personal representative has the same power over the title to estate property that an absolute owner would have, held in trust for the creditors and others interested in the estate, and that this power may be exercised without notice, hearing or court order. The Wayne County Probate Court’s sale page says prior court approval of a real estate sale is not required in a decedent’s estate unless the letters of authority are restricted. The same page describes when the court restricts letters, so ask your probate attorney whether yours are restricted.

Other limits come from the will, an order in a formal proceeding or the letters. The Michigan section that lists a personal representative’s transactions, including selling estate property, applies except as restricted or otherwise provided by the will or by an order in a formal proceeding. The letters of authority form has a place for that kind of limit, including a printed option that says the personal representative has no authority over the estate’s real estate.

So unless the personal representative is the state or county public administrator, the letters are the document to look at first. Have your probate attorney go through them with you and confirm whether the sale needs court approval. If it does, ask what the court will need and how long it usually takes, so the listing plan fits.

Treat any court approval as part of the plan from day one. Tell your listing agent before the house goes on the market, so the marketing, the showing schedule and the conversations with buyers’ agents all reflect the timeline. A buyer who knows about the approval step up front can plan for it too.

What do informal, formal and supervised administration mean?

They describe how the estate was opened and how closely the court follows it. Michigan law says a personal representative is appointed either by the register or by court order, and the letters of authority form has a signature line for a judge in formal proceedings or the register in informal proceedings.

The Wayne County Probate Court’s pages describe two ways an estate opens: informally, by application, or formally, by petition. A supervised administration is requested on the formal petition. The court’s decedent estate page also describes a formal proceeding as starting with a petition.

Supervised administration adds reporting to the court. The letters form lists additional duties for a supervised administration, and the court’s fiduciary training says a supervised personal representative files an annual account with the court. Your probate attorney can tell you which route your family’s estate is on and what it means for the timing of the sale.

What should you ask the title company before you list?

Ask early what it will need from the estate to close. The letters of authority form has a line for the date the letters expire. The Wayne County Probate Court lists a fee for a certified letter of authority and has a process for getting updated letters with a new expiration date.

So ask the title company two things before you list: what proof of authority it wants to see, and how current it needs that proof to be. If the letters will expire before your expected closing, ask about updated letters early instead of the week of closing. If the court has to approve the sale, ask your agent and attorney how to allow for that step when you set a closing date. It also helps to keep the estate’s paperwork in one place, including certified copies of the letters, so the personal representative can answer the title company’s questions quickly. My guide to what a title company does in a Michigan home purchase explains the title company’s role.

Two other seller questions come up on many Downriver sales: the transfer tax and the Seller’s Disclosure Statement. They may or may not apply the usual way to an estate sale. My posts on the Wayne County transfer tax and disclosure statement timing cover how each works, and your attorney or title company can tell you how they apply here.

What should heirs settle before listing the house?

Get the authority question answered first, then the house. If more than one heir is interested in keeping the house, settle that before you list. One heir buying out the others is a different path from a market sale, and your probate attorney can explain how it would work inside the estate. Here is the order I’d use:

  1. Find out if an estate is open. If not, talk with a Michigan probate attorney about opening one and which route fits.
  2. Get a copy of the letters of authority. Note who is named and the expiration date, and have the attorney confirm whether anything limits a sale of the house.
  3. If court approval is needed, plan for it. Ask the attorney what the Wayne County Probate Court will need and how long it usually takes.
  4. Agree as a family on the plan. The personal representative acts for the estate, but the heirs may want a say in price and timing. Talk it through before the house goes on the market.
  5. Secure the house. An empty house needs someone checking it, keeping the utilities on, handling the lawn and snow, and asking the insurer about coverage for a vacant house.
  6. Ask the title company about paperwork early. Find out what proof of authority it needs and when.

When those are in place, the house can go on the market. Start with the pricing strategy guide and a fresh home value review.

Frequently asked questions

What does it cost to open an estate in Wayne County?

The Wayne County Probate Court lists a $175 filing fee for a decedent's estate, plus an inventory fee it calculates from the estate's value, and $12 for letters of authority. Fees can change, so check the court's fee page before you file.

What if the estate isn't settled within a year?

Michigan's letters of authority form and the Wayne County Probate Court's fiduciary training both say that if the estate is not settled within a year, the personal representative must file a notice of continued administration with the court. If the house sale runs past that point, expect that filing too, and ask your probate attorney what else is due.

Can the estate sell on terms, or lease the house instead?

Michigan law lists selling, mortgaging or leasing estate property, for cash, credit, or part cash and part credit, with or without security for the unpaid balance, among the things a personal representative may do. Whether terms or a lease make sense for your family is a question for your probate attorney.

Can the person named in the will do anything before appointment?

Michigan law says a personal representative's powers relate back in time to give acts by the person appointed that are beneficial to the estate, done before appointment, the same effect as acts done after it, and that a person named as personal representative in a will may carry out the decedent's written instructions about the body, funeral and burial before or after appointment. Ask your probate attorney before taking any step on the house.

Sources

Ready to talk strategy? Call David Goad at 313-319-7688.

If you want to dig deeper into the local market, check out the Downriver MI Real Estate Guide. And if you want to get a better feel for who I am and how I work, here's the About David Goad — Downriver Realtor page. If you're comparing agents and trying to figure out who really knows this market, this page on the best Realtor in Downriver MI gives you more context too.

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