Authored By: Elizabeth J. Barber, Esq. ebarber@dunlapmoran.com
Generally, Florida probate is required when someone passes away owning assets in their sole name. When it comes to Florida real estate, it is common for many people to list a property for sale, find a buyer and only then to discover that the death of an owner of the property prevents them from closing the deal until a Florida probate is conducted. Naturally, this strikes fear and trepidation into the hearts of all parties concerned – sellers, buyers and brokers! Don’t despair – we are here to help…
If you are in the real estate business think twice before leaping into a listing agreement on a property in which one or more of the owners of record are deceased. Don’t take the family’s word for it that they have the authority to sell it. The better route to take is to ask one of our firm probate attorneys to take a quick look at the situation to allow us to give you a recommendation on how best to proceed under your scenario.
To help sort it out, family members of the deceased should gather the decedent’s Last Will (if there is one), the certified Death Certificate and copies of any out-of-state probate proceedings, and/or the name and contact information of the attorney handling such out-of-state matters. This will help facilitate a much faster review of the matter so that your listing and sale might be able to occur with the expediency that most sellers and buyers in our area have come to expect.
Florida Statutes provide two forms of probate that are commonly utilized in these situations. The shorter form of probate, or Summary Administration, can be used when the value of the estate assets is less than $75,000 in total, or when the decedent has been deceased for over two (2) years. When a family is trying to sell mom and dad’s Florida property, this two-year period is measured from the date of death of the second of mom or dad to die. If your circumstances fit into this category, Summary Administration can usually be conducted at less cost to the family and in a relatively short amount of time. The proviso here is that all family members must be organized and must cooperate with one another in order to make this procedure happen with the efficiency and speed desired in real estate sales.
The second form of probate, or Formal Administration, is more commonly required. Most properties in our area are over the $75,000.00 mark and most families try to sell their parent’s properties far sooner than the two (2) year mark following death, as everyone would naturally like to receive the bequest that has been left to them without such a long wait. Formal Administration is the full version of probate and requires that someone be appointed by our local court as the Personal Representative. No one has the authority to list or sell real estate falling into the Formal Administration category until a Personal Representative has been given circuit court authority to act for the estate. Formal Administration also requires legal notice to creditors giving them three months to file any claims for reimbursement from the estate for unpaid bills or debts of the decedent, even with decedents who have left no known debts or un-paid bills behind.
The good news though for property sellers is that once a person is appointed by our local court as the Personal Representative, the property can be sold during formal probate. However, if the closing occurs prior to the end of the three-month creditor period, the net proceeds of the sale of the property must be held in escrow until the three months pass and until all legitimate claims are paid. Once these steps have been accomplished, the Personal Representative can then provide an accounting of the funds remaining after expenses and distribute the balance of estate funds to the beneficiaries.
So, for all real estate professionals, our best advice is to quiz the families of deceased owners of Florida real property carefully. Ask them for a copy of the Will and Death Certificate, and then contact one of our firm’s probate attorneys so that we can take a look at your particular situation. Such questions may feel intrusive, but they are legitimate and necessary and will be without a doubt asked by the closing agent during the transaction. Best to get the ball rolling on acquiring the facts and information necessary to ensure the probate is handled efficiently and competently. We are more than happy to let you know what our recommendation might be to help facilitate a prompt closing of your deal!
This blog is intended for informational purposes only and it is not intended to be, nor should it be construed as, legal advice or legal opinion. The reader should not consider this information to be an invitation to an attorney/client relationship, should not rely on information presented here for any purpose, and should always seek the legal advice of counsel in the appropriate jurisdiction.
Authored By: Scott W. Dunlap, Esq.
November is here, and hopefully cooler weather is on the way. Thanksgiving is also approaching. And of course, real estate tax bills have now been made available by the tax collectors in most Florida counties (as they say, “two out of three ain’t bad”).
For any homeowners who have a mortgage loan, it may be the case that the mortgage lender is collecting real estate taxes and, therefore, will pay the 2019 real estate tax bill. This will occur by the end of November, so that the maximum 4% early payment discount will be obtained. Even if your lender is to pay the real estate tax bill, the borrower/homeowner is advised, of course, to double check with the tax collector in early December (usually one can double check on-line) to make sure the tax bill has been paid.
Homeowners who do not have a mortgage, or who do not escrow for real estate taxes, have a choice of when to pay real estate taxes. Paying the tax bill in November will mean a 4% discount. Paying by the end of the year will still earn a 3% discount. Of course, paying the real estate taxes by the end of the year is important as well for the federal income tax deduction that is still available (although limited in amount).
Keep in mind that if you closed your purchase recently, you may not receive the 2019 tax bill (i.e., your seller may receive instead), so you will need to pull the bill from your local tax collector’s website.
For those owners who purchased or acquired their Florida, primary residence in 2019, those owners are reminded to presently apply for the homestead exemption even though the homestead exemption will not be valid until 2020. In other words, don’t forget to apply and obtain the homestead exemption, as the benefits are:
In order to qualify for the homestead exemption for a particular residence, the owner, by January 1st of the applicable year, must be a Florida resident, and must own the home (or have the 98 year lease or be the beneficial owner through a trust for example), and the home must be the permanent/primary residence of the owner. The owner must also apply for the homestead exemption, either on-line or in person at the Property Appraiser’s office, on or before March 1st of the year in which the homestead exemption is claimed.
So, in summary, the advice is to make sure the real estate taxes for your home are paid in November or December. And if you are entitled to claim the homestead exemption for a home purchased in 2019, apply now and don’t wait for cooler weather.
Happy Thanksgiving to all!
This blog is intended for informational purposes only and it is not intended to be, nor should it be construed as, legal advice or legal opinion. The reader should not consider this information to be an invitation to an attorney/client relationship, should not rely on information presented here for any purpose, and should always seek the legal advice of counsel in the appropriate jurisdiction.
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