Bob Bruss on Probate Property
Real estate writer Bob Bruss heads into JG Banks territory with this article, which discusses making a profit on probate properties. I like the discussion of the risks of buying these properties, but have two criticisms:
1. Mr. Bruss states that "[f]inding probate properties isn't easy," but then goes on to detail some fairly easy steps you can take to locate these types of properties:
... [C]lip the daily newspaper obituary notices, look for published legal notices to creditors and notices of petition to administer estates, check probate court public files to determine if the deceased left real estate to be probated, and check with estate executors and administrators to learn if real estate will be sold.
2. Mr. Bruss says that investors should try to buy directly from executors and administrators, stating that "[b]ecause most executors and administrators are 'amateurs,' they usually want a quick, easy sale and are not motivated to get top dollar." As I said before in this post about JG Banks probate seminars, "executors and administrators owe certain fiduciary duties to the beneficiaries of an estate, and... selling estate property at a discount would seem to me (absent other compelling facts) to be a violation of these duties." I suppose you can just say "seller beware," but do you really want to profit by trying to convince executors and administrators to violate their fiduciary duties? There have to be easier ways to make a buck.
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