I’ve been getting calls from members asking whether a residential sales contract automatically terminates when a party to that contract dies. Generally, the contract will survive. The executor can usually execute any documents related to the transaction during the probate process, as well. However, the parties should consult private attorneys for further guidance.
Traci Jackson, associate counsel
This seems to be correct as it relates to “a seller” – how could it possibly relate to “a buyer”? Maybe a cash buyer – certainly not a buyer obtaining a loan. Neither the question nor the answer seem to differentiate, which to me seems appropriate.
I can see an extension not being granted on a hot listing.
All true, but it certainly changes things for a buyer on a timeline, especially if there’s a domino effect, affecting other transactions contingent upon this subject transaction. Either an amendment or termination would be the natural next step in this scenario. Thank you for the short answer!
I was having this conversation with my client’s daughter this morning. Daughter will be getting a Power of Attorney for now (my client is 96 yrs young! ; and I have advised the daughter (co-executor) to have the Will reviewed by an attorney NOW! Executors should retain full selling powers in my opinion; this family is at least 50 members strong! Whewwww!
POA disappears on the death of the grantor. The will, or lack thereof, will then take precedence.
Carol, I suggest the father & daughter go to the county building and file a TODD (transfer on death deed) for the house even if there is a Will. Theres a lengthy process with a will. With a TODD she can sell it right away.
My seller died and his wife had him do the transfer right before. Even though it was willed to her he had kids from a previous marriage and she didnt want the estate to go to probate and contested.
I have had this situation and it closed, we just had to wait for it to go through probate. Will take a little longer but it can work out if parties are willing to wait, this goes for the buyers.
An executor, and therefore the heirs, can assume or reject the Contract obligations.