How do you get a clear deed to 'paid in full' property when the seller dies before it can be transferred?

Answer

In general practice a sale of land is a single transaction supervised by an attorney with the consideration being given over IN EXCHANGE for a deed. As part of the transaction the attorney would have the title examined by a professional to ascertain the status of the title. When the consideration has already been paid to the seller who then dies before executing the deed, the purchase becomes more complicated: the buyer must obtain a deed from the duly appointed representative of the estate.

An Administration must be done when someone dies intestate owning real property. The Administrator must be appointed by the court and must petition the court for a license to sell the real estate. In Massachusetts that can usually be accomplished within 2-3 months. The buyer must produce proof that the consideration has already been paid. The Administrator must furnish an accounting to the court that the consideration has been paid.

If the deceased left a Will then the Will must be allowed by the court and the Executor appointed. The buyer must approach the Executor for a deed. If the power to sell real estate was not granted in the Will then the Executor must obtain a license to sell the real estate and furnish an accounting to the court as to the consideration.

The buyer could wait until the estate is settled and try to obtain a deed from the heirs. The waiting period would be longer. It would be safer and easier to complete the transaction with the Administrator/Executor who would be duty bound to settle the estate and who would be HELD ACCOUNTABLE by the court.

On the other hand, you may be a party to a land contract (sometimes known as a “contract for deed” or an “installment sale agreement”) which is a contract between the owner of a property and a person who wants to buy the property for an agreed-upon purchase price. It is used in certain states as a means to purchase property.

Under a land contract, the seller retains the legal title to the property. A contract for deed is frequently used in transactions between private parties. It seems a simpler way to purchase land, at least on the surface. In many cases, buyers enter into such a contract because without such an arrangement they would not be able financially to make such a purchase. However, such a process sometimes increases exposure to undesirable side effects. The problem at hand being one of them: the owner died before executing a deed.

A contract for deed may be recorded to evidence the agreement.  However, sometimes the parties do not want the terms of their agreement disclosed and therefore do not record the contract. That points to another problem with the process, an unscrupulous seller may encumber the property by a mortgage after agreeing to sell and taking payments.

In any case, you need to seek the help of an attorney to complete your acquisition of title to the property.

First answer by ID0000000000. Last edit by Kluss. Contributor trust: 80 [recommend contributor]. Question popularity: 142 [recommend question]