- These cases are often court-appointed, so the contract of sale for the real property will require review by designated "interested parties" and court approval prior to settlement. I add in time for this step through a third-party approval contingency for the seller.
- There is no historical knowledge of the property condition or improvements.
- The property will be sold in a true as-is condition, with all as-is provisions allowed in that jurisdiction; this means no repairs, no seller credit, no full property inspection.
- There is almost always a lack of records for property maintenance and even pay-off records for past deeds of trust or mortgages. Occasionally we cannot locate the note of satisfaction for a lien placed on the property; thus we like to get title attorneys involved early in the transaction (often before listing the property).
- The property is often priced below market value, due to the as-is nature of the sale; how far below market is determined by property condition and other financial considerations of the seller. The property can still be exposed to the market to substantiate the market value to the court.
- Often there are limited or non-existent funds for property preparation prior to going on the market. Note that in future blog posts, I will discuss options to address this funding gap.
- The properties are typically distressed with deferred maintenance, with poorly functioning or broken systems, and with outdated kitchens, baths, flooring, and other decorative elements.
- Often there is extensive detritus inside the home and across the yard, sometimes including abandoned pet waste or pest infestations and their associated odors.
As an attorney or fiduciary, or even family member, with responsibilities for these type of real property sales, consider the advantages of working with an agent, like Lisa LaCourse, who is familiar with these and other related challenges.
