If you’re a dedicated investor, then you will eventually find excellent value in the prospect of Purchasing Deceased Estates. Most people don’t think that it is a worthy investment, but like all other real estate prospects, it is something that you can take advantage if you know what you’re doing.
You must scrutinise and review the property ownership structure before signing the contract of sale, the purpose of which is to guarantee that the property transfer goes on smoothly and without legal issues.
Before we make more sense on the idea of investing in a deceased estate, let us first understand the term. A deceased estate refers to the property as well as the assets of a person who passed away. For the most part, the deceased estate is held in trust until the transfer of the property and assets to the rightful and legally nominated beneficiaries. Be reminded that the deceased estate has legal standing once it is administered by an executor appointed in the will or by the court.
The plan to purchase a deceased estate makes sense, but there are specific steps that you must strictly follow to make sure that all the administrative and legal requirements are followed.
1 – Perform some research.
While the purchase of a deceased estate is an excellent opportunity to secure a property in a well-established location and for a reasonable price, don’t forget that there are essential tax and legal implications. You should consult the experts like conveyancers, property tax specialists, and the nominated executor for you to have a full grasp of the process. Be sure to put in the effort to conduct market research to become familiar with property values. The one thing you must get is a reasonable price. Likewise, you should understand the capital growth potential.
2 – Locate the property.
You may perform an online search for deceased properties using online tools and websites that exclusively list deceased estate properties for sale. Real estate agencies also commonly advertise deceased estates so that you can go there, too.
3 – Create a team.
You must build and hire a team of qualified professionals to help you through the process. Apart from the nominated solicitor or executor, your team should include an accountant, local real estate agent, buyer’s agent, accountant, property lawyer, and a financial expert.
Never forget to review the ownership structure of the property in Purchasing Deceased Estates. Some regions in Australia don’t allow a property sale without the deceased person’s name on the title. Likewise, the property must be transferred to the name of the surviving spouse or executor before any sale or transfer happens. It is a time-consuming process, which means you must prepare yourself for it.