Selling the Estate's house

[whatsagirltodo]

What is the name of your state?What is the name of your state? WI

My question is mom's house is in Probate and there is an Estate Lawyer. Now the executor is gonna be buying the house from the estate. The Executor is a heir. Executor hired a differant lawyer to handle the sale of the house real-estate Lawyer. Who is gonna pay for the real-estate lawyer...the Executor(out of his own pocket) or the estate? Also whom would pay for the closing costs..tittle/deed and all that goes along with that? If the executor sticks the bill to the estate wouldn't that be "self dealing"?Normaly how does this go? Thanks

 

[nextwife]

Is the executor paying a fair market price based upon appraisal or some other agreeable forme of market value determination? If so, the estate should pay for whatever costs the "seller" (being the estate) would pay if selling to anyone else. Who pays what in closing costs varies a bit from market to market, so you should use whatever is standard practice in your area and proceed accordingly. Typically, in my market (SE WI), seller pays to provide the owners policy of title and buyer purchases a simultaneous loan policy if they are being financed. The cost of doing the seller's side of the closing paperwork falls to the seller side, and the lender closing docs to the buyer. I can't know what all the standard closing costs are in your market.

But anyway, if buyer is paying a market price, seller should pay whatever is typically seller's responsibilty. Don't forget, with executor buying, estate is spared the expense and carrying costs of marketing the property.

What part of the state are you in?

 

[whatsagirltodo]

I am in south-east-central part of WI

Yes the executor is buying the house at FMV. It is a big mess this whole Probate mess. If you search my user name on this forum there is alot more info on this deal.That may clear up more on to why i was hoping the executor would be paying for this out of his own pocket. So the executor hiring another lawyer to take care of the sale of the house to himself is the Estate's bill also? Thanks

 

[nextwife]

Well, if the estate sold the house SOMEONE would need to prepare the closing. I know that many probate attornies in these parts pay the title companies to do all the closing doc prep, so the estate would still have paid for certain closing costs. The estate should not pay for buyer expenses, such as the lender closing, or for the buyer to consult and review with his attorney.

I would think that all the normal SELLER side expenses should be paid by the seller. If the estate were selling to anyone else, they'd be paying these.

In SE WI, the typical seller costs are as follows:

Owners title policy and special assessment letters
Municipal Code compliance inspection and compliance repairs
Safe water and septic tests
Recording costs for any lien, judgement, and mortage releases affecting the property
State transfer tax of $3/thousand
Seller side doc prep: PR deed, transfer return, seller-side closing statement, ordering payoffs and disbursing costs
Prorated expenses (property taxes, sewer/water, association fees, etc.) and any mortgage payoffs

Any and all loan costs are normally the buyers responsibilty, including the lender's closing fees. If the buyer's attorney also does the lender closing, you will need to have that billed seperately and placed in the "buyer column".