Question:
If an elderly seller (sole owner) lists a vacant property utilizing a Power of Attorney, sells firm with a quick closing date, but dies before closing. How can the risks be minimized?
Answer:
Move the property into joint tenancy with the Attorney, or in joint tenancy with a newly incorporated corporation before the person passes away. Then, the time periods set out in the Agreement of Purchase and Sale can be met.
Then, all that is required is a death certificate. Probate is not required. That could take about 7 to 9 months and amount to $15,000.00 on a one million dollar property.
In addition a “statement of intention” will be required. It should be made clear that the person as the other joint tenant is receiving the conveyance in trust and the property is to be distributed when sold in accordance with the provisions set out in the Owner’s Will.
Brian Madigan LL.B., Broker
Comments 4
Once the owner dies you can’t transfer the title to anyone without probate.
Author
Bob, good point. I have now added “before the person passes away. Brian
Interesting idea. Never heard of this before.
Will the closing Lawyer or does it have to be a Lawyer other than the closing lawyer.
Can we say this is like an ILA.. I guess this document can be done once the sale if firm.
Are there any restrictions or limitation of such a document.
Author
It’s just an ordinary Transfer/Deed.
A real estate lawyer with access to Teranet will have to complete it.
It can be done at any time. So, preferably before the property is listed if this is a major risk. Probate fees are saved and any transaction that is entered into, will close on time.
Brian