The Process of Buying a House From a Deceased Estate

Buying a house from someone who’s deceased is not the same as buying a house from someone who’s living, and doing so comes with a mix of pros and cons.

By Emily Southey | 8 minute read

Are you in the market to buy a house and wondering about a property being sold from a deceased estate? Then there are a few things you should know.. Continue reading to learn more about the process of purchasing a house from a deceased person.

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Buying a Home From an Estate Sale Versus Buying a Regular House

When someone passes away, the money and assets they leave behind are referred to as their estate. Their estate includes their property. In some cases, a beneficiary inherits the property and lives in it themselves. But in others, the beneficiary decides to sell the property in an estate sale. 

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The process of purchasing a home through an estate sale shares some similarities with buying a regular home, but there are also a few key differences prospective homebuyers must be aware of.

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First, when you look at a listing for a regular home, you will find that the homeowner is typically the seller. However, in the case of an estate sale where the homeowner is deceased, the estate becomes the seller and is being sold by the person in charge of administering the estate (the estate trustee). Therefore, when you buy a house from a deceased person, you will be dealing with the estate trustee rather than the current homeowner. 

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Another distinguishing factor is that until the home has been probated, title to the property cannot be transferred to another person. Therefore, when making an offer, it’s important to add conditions (or subject clauses) related to this. For example, your offer might be contingent on the seller receiving a grant of probate by a certain date, along with the assurance that anyone entitled to make a claim against the property has waived or released their claim.

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Since the title transfer of a home from a deceased estate cannot take place until probate has been granted, the homebuying process tends to be much longer than with a regular home. In fact, it could take several months before probate is granted, which is why some estate trustees will include a clause allowing the closing date to be delayed if probate isn’t granted in time. All in all, buying a house from a deceased person requires more patience and flexibility than a regular house.

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One final difference between buying a house from a deceased estate and buying a house from a person who’s living is that in the former case, information about the home may be limited. Since the property is being sold by an estate trustee rather than the homeowner, they may not be aware of details like the age or condition of the home or its history, renovations, or repairs. For this reason, making your offer conditional on a home inspection is crucial.

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The Pros and Cons of Buying a House From a Deceased Estate

Buying a house from a deceased estate has both advantages and disadvantages. We outline these pros and cons below.

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The Pros

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• Better value: Deceased homes are often sold at a cheaper rate or for market value, making this a cost-effective option for homebuyers. 
• The seller is motivated: Since the estate trustee is likely motivated to sell the property as quickly as the probate process will allow, buyers might be able to negotiate an even better price or include certain conditions with the purchase agreement.

The Cons

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• Property age and condition: Deceased homes tend to be older and some have even been empty for a long time. This could mean that the house requires significant maintenance or repairs before it’s move-in-ready. But if you’re interested in buying a fixer-upper, a deceased estate might be the perfect option.  
• Lengthy and complex legal process: The title to the property cannot be transferred until probate is granted, which is a process that can take several months. Therefore, prospective homebuyers must be willing to put up with a lengthy and complex legal process in order to buy a house from a deceased estate.

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How to Buy a House From a Deceased Person

Keep reading for a step-by-step guide to buying a house from a deceased estate.

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1. Search for deceased estate sales online

Start by searching for deceased estate sales in your preferred neighbourhoods on the internet. You can also enlist the help of a REALTOR®, perhaps even one who specializes in deceased estates. 

2. Get your finances in order

The next step is to get your finances in order. This involves gathering the necessary documentation (proof of income, identification, notice of assessments, and more), getting pre-approved for a mortgage, and ensuring you have enough money in savings to cover the down payment. 

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3. Request probate

Before putting in an offer on a house from a deceased estate, you should always request a copy of the probate (which is the proof that the will is valid) or the letter of administration. In some cases, probate has been granted before the house goes on the market. But in others, the probate process may still be ongoing, which will likely mean a delayed closing date. 

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4. Make an offer

Draft your offer to the seller and be sure to include the purchase price and any conditions or subjects, such as a home inspection contingency.

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5. Close the deal

Once your offer has been accepted and probate is granted, the sale can proceed as normal. Keep in mind that, even when buying a house from a deceased estate, the buyer is typically still responsible for closing costs, home inspection costs, and the earnest money deposit.