Authority to sell
An executor's power to sell estate property usually comes from the will and the letters issued by Surrogate's Court, and many New York wills grant a broad power of sale. When there is no will, or the will is silent, an administrator's authority may be more limited in practice, and title companies may ask for consents from the heirs or a court order. Letters sometimes carry restrictions that must be lifted before a sale can close. Until someone is appointed, there is generally no one who can sign on behalf of the estate. Buyers and their lenders will check this, so authority should be confirmed before a contract is signed.
Pricing, fairness, and records
Executors owe the beneficiaries a duty to obtain fair value, so an appraisal or a broker's opinion is often worth getting before a property is listed. Selling to a family member, or to the executor personally, requires particular care, because it can look like self-dealing and may need consent or court approval. Keep records of offers, marketing efforts, and repairs paid for by the estate. Any mortgage, unpaid property taxes, and liens need to be addressed at closing. Sale proceeds go into the estate account rather than to beneficiaries directly.
Coordinating the closing
A first meeting usually confirms authority, identifies the documents a title company will require, and looks at any disagreement among beneficiaries about selling. If a beneficiary wants the property instead, a distribution in kind or a buyout may be an alternative to a sale. Tax questions, such as the basis of inherited property, also come up, and we coordinate with the estate's accountant. When you are buying from an estate, the questions run the other way: whether the seller has authority and whether any court approval is still pending. Answering these questions early tends to keep a closing from stalling at the last minute.
