Sale of Real Estate in Decedent Estates and Conservatorships

Forms Needed:

Decedent Estate -

(PC 681), Petition for Approval of Sale of Real Estate (Decedent Estate)

(PC 682), Order Regarding Sale of Real Estate (Decedent Estate)

Forms may be found at Michigan Court - Court Forms

Conservatorship -

(PC 646), Petition Regarding Real Estate\Dwelling

(PC 647), Order Regarding Real Estate\Dwelling

Forms may be found at Michigan Court - Court Forms

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.

Sale of Real Estate in Conservatorship

A conservator is restricted from selling or otherwise disposing of or to mortgage, pledge, or cause a lien to be placed on 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.

Procedures – Sale of Real Estate

Forms Used - Decedent Estate – Petition for Approval of Sale of Real Estate (Decedent Estate) (PC 681); Order Regarding Sale of Real Estate (Decedent Estate)

Forms Used - Conservatorship -Petition Regarding Real Estate\Dwelling (PC 646); Order Regarding Real Estate\Dwelling (PC 647).

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