Question regarding executor purchasing estate property

[Warped]

What is the name of your state? Virginia

I'm not sure if this is the proper forum for this so please forgive me if it isn't. I'll try to keep this as brief as possible but some explanation is necessary.

My mother is dying of complications from cancer. I am named the executor of her estate and have full POA. I live in Virginia and have only one sibling who lives in Florida. When my mother passes, her will states that I am to sell one of her properties that lies here in Virginia and divide the proceeds after the mortgage is paid off between my brother and myself. What I would like to do is purchase the property and continue renting it. My brother is fine with me purchasing it and has even stated that he would trust my judgement as to the value of the house in question.

I want to keep everything legal and ethical as well as be fair to my brother so, here are my questions.

1: Should I get an appraisal of the property to set the selling price for the estate or should/can I set the price by the property tax assessment + XX% since we all know that assessments are lower than actual market value?

2: If I don't get an appraisal, is it legal and ethical for me to set the value after reaching an agreement on the sale price with my brother?

3: In this type of situation where I would get a percentage of the sale price as an heir, is it legal and ethical for me to mortgage the property for the agreed upon selling price and take my percentage in cash to be used for repairs on that property as well as my own?

4: In this situation, will there be closing costs, points and that sort of thing since, essentially, I am both the buyer and estate named seller of the property?

I'm not intentionally being morbid, I'm just trying to plan ahead for the inevitable. If any of you think of other issues that I might face, I would appreciate your advice on them as well. Thanks for your time!

[nextwife]

Certainly you have the same right as a total stranger does to come forward and purchase the property. If your brother and yourself are the only heirs, whatever method you and he together agree is equitable may be used. An appraisal is certainly a good way to determine value. If you want to use another method, that is ok if he is comfortable with it.

Certain closing costs exist no matter who buys the property. Someone must prepare the deed, any state transfer form, order any loan payoffs, calculate the prorations for the closing statement, arrange any pre-sale municipal code compliance inspection that is required and do whatever work is necessary to obtain a compliance certificate. If you obtain a mortgage, then any lender closing fees also exist that YOU would be responsible for.

[Warped]

Originally Posted by nextwife

Certainly you have the same right as a total stranger does to come forward and purchase the property. If your brother and yourself are the only heirs, whatever method you and he together agree is equitable may be used. An appraisal is certainly a good way to determine value. If you want to use another method, that is ok if he is comfortable with it.

Certain closing costs exist no matter who buys the property. Someone must prepare the deed, any state transfer form, order any loan payoffs, calculate the prorations for the closing statement, arrange any pre-sale municipal code compliance inspection that is required and do whatever work is necessary to obtain a compliance certificate. If you obtain a mortgage, then any lender closing fees also exist that YOU would be responsible for.

Thanks for the response nextwife. I have another question, if you don't mind that is.

The closing costs related to preparing the deed, loan payoffs and so forth would essentially be the fee for the attorney who completes that paperwork and any state or local paperwork fees, correct? Thanks for your help!

[nextwife]

I don't know SPECIFICALLY for YOUR area who pays what in a typical sales transaction.

Some of "what fee falls to whom" is based upon local practice. In my market, the seller side pays for the owners title policy (including search and exam and OP premium), code compliance certificate, any applicable state transfer tax, recording of any mortgage/lien/judgement releases for seller side, deed and closing statement preparation, well/septic/safe water tests, disbursing fees.

Buyer pays loan related costs (appraisal, credit report, mortgagors title policy, recordation costs of mortage and deed, mortgage taxes, if any, survey, points, mortage doc prep and lender's closing fee.

[HomeGuru]

I agree. An appraisal should be done and the estate should pay for seller costs and the writer buyer costs relative to closing the sale.

[Warped]

Thanks for the help HomeGuru and nextwife, I really appreciate it!

[HomeGuru]

nexie is not only helpful but good looking as well.