The Florida probate process can sometimes take a year or longer to complete, especially if there are disputes or if the estate is relatively large. The personal representative overseeing estate administration may want to limit their hands-on obligations for asset maintenance by selling the primary residence or other real estate holdings of the decedent before the completion of the probate process.
However, they may worry about facing consequences for selling assets before the final accounting of the estate or the fulfillment of all outside financial claims. Is it legal to list real estate owned by an estate for sale while probate proceedings are still underway?
Yes, a sale during probate could be lawful
Florida probate statutes do not explicitly require the retention of all assets until the completion of the probate process. So long as the personal representative retains enough property to fulfill the remaining financial obligations of the decedent, they can transfer or sell some of the property that belongs to the estate.
Once the probate courts provide the Letters of Administration to the personal representative, they can conduct transactions on behalf of the estate, including the sale of valuable resources. There are many reasons to list real estate for sale before the completion of probate. A sale can limit conflicts about responsibility to pay the mortgage, taxes and insurance costs for the home.
Personal representatives may worry about the property falling into disrepair if it becomes vacant or experiencing a sharp decline in property value because of a protracted vacancy. They may also lack the time or physical capability to maintain the property throughout the estate administration process. In cases where the estate lacks adequate resources to cover debts and tax obligations, liquidating assets can help the estate fulfill outstanding financial obligations.
Additionally, they may worry about local homeowners associations (HOAs) continuing to impose monthly fees that consume estate resources. There is no non-use waiver in Florida law that prevents the HOA from collecting monthly fees because a home is vacant and the owner does not use community amenities.
Working with a Florida probate attorney can help personal representatives ensure they fulfill their responsibilities and comply with all applicable statutes. Those concerned about how to manage high-value resources may want to consult with a lawyer before making any major financial moves.