Sale of Real Estate in Decedent Estates and Conservatorships

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 mortgaging, pledging, or causing a lien to be placed on the protected individual’s principal dwelling, real property, or interest in real property without obtaining prior court approval, pursuant to a hearing, at which the court considers evidence of the property’s value and otherwise determines whether the transaction is in the best interests of the protected individual.  MCL 700.5423(3). An appraisal that has been completed by a licensed professional within the last 6 months must be filed with the court prior to the court hearing the petition.

The Wayne County Probate Court, as additional protection for the individual, also includes restrictions on the letters of authority for conservtorships relating to these transactions.

Procedures – Sale of Real Estate

Forms Needed:

• Decedent Estate -
  1. (PC 681), Petition for Approval of Sale of Real Estate (Decedent Estate)
  2. Together with a copy of the most recent assessor’s statement or tax statement showing the state equalized value of the property, and a copy of the purchase agreement.
  3. Filing fee: $20.00
• Conservatorship -
  1. (PC 646), Petition Regarding Real Estate\Dwelling
  2. Together with a copy of the most recent assessor’s statement or tax statement, a copy of the supporting documentation (such as purchase agreement, mortgage documents, etc.), and a copy of an appraisal completed by a licensed appraiser within the past 6 months.
  3. Filing Fee: $20.00
  

Homes for Generations, Homes in foreclosure status

The Wayne County Probate Court has adopted as a general local policy, that when petitions are filed with the court that request an emergency hearing to address an imminent foreclosure or loss of real property, including petitions for the appointment of a fiduciary to address this issue, an emergency hearing will be scheduled within 3 weeks of the filing date. Submit supporting documentation that explains the urgency with the submitted filing. See the Emergency filing process for this situation.

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.