SALE OF REAL ESTATE IN

DECEDENT ESTATES AND CONSERVATORSHIPS

Note: The Court is prohibited by law (Sec. 1211 of the Estates and Protected Individuals Code [EPIC]) from providing legal advice and completing forms. This item provides general information concerning the sale of real estate in decedent’s estates and conservatorships and may be useful as a guide. If you have any questions, consider contacting an attorney for assistance.

Sale of Real Estate in Decedent Estate

Sale of Real Estate in Conservatorship

Procedures - Sale of Real Estate

Bonds

Forms Needed:

(PC 646), Petition for Approval of Sale of Real Estate

(PC 647), Order Approving Sale of Real Estate

Filing Fee - $20.00

Sale of Real Estate in Decedent Estate

Prior court approval of sale of real estate is not required in decedent estates unless the letters of authority are restricted.

The Wayne County Probate Court typically restricts the letters of authority on estates that were opened using a formal petition (as opposed to an informal application) to prevent the personal representative from selling real estate until court approval is obtained. MCR 5.202.

Sale of Real Estate in Conservatorship

A conservator is restricted from selling or otherwise disposing of real property without court approval, pursuant to a hearing, at which the court considers evidence of the property’s value and otherwise determines whether the sale is in the best interest of the protected individual.  MCL 700.5423(3).    

The Wayne County Probate Court, as additional insurance, also restricts the letters of authority for conservtorships to prevent conservators from selling real estate until court approval is obtained. MCR 5.202.

Procedures – Sale of Real Estate

Forms Used – Petition for Approval of Sale of Real Estate (PC 646); Order Approving Sale of Real Estate (PC 647).

Note: The Wayne County Probate Court has combined the SCAO Petition and Order into one form.

The petition to approve the sale of real estate must contain the terms\purpose of sale, legal description, and estate’s financial condition prior to sale. MCR 5.207(A)(1)-(3). Instead of a written description of the terms, a copy of the purchase agreement or deed that details the terms may be attached.

The petition must also contain the most recent statement with the state equalized value (SEV) listed.  A petitioner may submit and\or the Court can order a written appraisal, if it is not satisfied that the evidence demonstrates the fair market value.  MCR 5.207(A)(4). 

Bonds

The court can require the filing of a surety bond for the sale of real estate in decedent estates or conservatorships. A bond is an insurance policy which is purchased (the cost is payable from the estate or conservatorship) from a company. It is not a bail bond – i.e., money is not deposited with the court.

If a bond is set, it must be filed prior to approval of the sale.

Rev. 12/08