Selling a house can seem simple at first glance. Spruce it up, decide on a price, and it’s off to the races. However, the market can be confusing, especially during shifting conditions. Now, let’s complicate things even further and talk about what it takes to sell a house that you don’t even own.

This scenario can happen in two ways:

  1. Your parents or other relative asks for you to sell a house on their behalf while they are still living.
  2. You are the executor of a will and need to sell the home for someone who has passed away.

As you can imagine, both situations present challenges at every turn. There are the usual details to attend to when getting a house ready to sell. In addition, there are legal complexities when your name is not on the title. Plus, you have to handle all of this at a time when you could very well be feeling emotionally fragile.

In this post, we’ll provide a one-stop resource of what you need to know to handle a real estate transaction on someone else’s behalf.

Plan In Advance

No one wants to think about the end of life or that of a loved one, nor do we ever want to imagine a time when we are not able to take care of our financial affairs.

The only thing worse than thinking about these topics is talking about them out loud. However, planning everything out makes it much easier for those who are left behind.

We recommend gathering everyone involved at your earliest convenience and sitting down for a heart-to-heart conversation. Once the key decisions are made, you’ll want an experienced estate lawyer to make sure everything is official.  When selling a house for someone else, you will also need to have legal documentation.

  1. When acting on behalf of someone still living, you will need Power of Attorney for Property. This must be granted while your loved one is still of sound mind and able to make their own legal decisions.
  2. If the person has already passed away, you need to be the executor of the will. 

Once you have ironed out all of the legalities, it’s time to turn your attention to some practical matters. Your loved one can help by keeping all account numbers and real estate deeds in one place. When the time comes, not having to frantically search for everything will help to streamline the process.

Getting the maximum results is essential when selling for someone else. The resources below will help:

Obtain Legal Advice and Representation

As your real estate team, we can offer guidance throughout your transaction, but we cannot give legal advice. Estate law is also rather complex, especially if there is tension between family members. No matter the circumstances, it’s always a good idea to work with an experienced lawyer to ensure your loved one’s wishes are clear and that all of the contracts and paperwork are in order.

Expert legal guidance can be the difference between a seamless transition and a long and drawn out process full of delays and stress. If you don’t have a lawyer in your list of contacts, a good real estate agent will be able to make a recommendation.

Power of Attorney

Your loved one may not wish to go through the hassle of selling their own home or they may no longer be capable of handling the task. In this case, it falls upon you as the Power of Attorney to go through the process and aim for the best possible outcome. 

There are two types of Power of Attorney to be aware of. You may have one or the other or both.

  1. Power of Attorney for Personal Care: This documentation allows you to make personal decisions for someone else, including medical and residential care. This authority comes into play if the grantor becomes incapacitated.
  2. Power of Attorney for Property: This happens when one person is granted authority to make financial decisions, such as buying or selling a house. This agreement is effective immediately unless stated otherwise. 

You have a legal obligation to work in the best interests of the person you represent. Your loved one is placing a great deal of trust in both your intentions and your judgment. When selling a house for someone else, this means you must do everything in your power to obtain the best outcome in the current market.

Executor

An executor is appointed to handle an estate on behalf of someone no longer living. The assets of the estate can include investments, bank accounts, heirlooms, and property. Managing a real estate transaction is a significant responsibility, but it is only one part of the executor’s role. 

These duties can include:

  • Arranging the funeral
  • Managing the estate
  • Notifying beneficiaries of their interest in the will
  • Keeping accurate records
  • Applying for probate
  • Selling the home, if applicable
  • Distributing assets according to the will

Are you or a loved one thinking about downsizing? The posts below can help you plan:

Managing an Estate Sale

If your loved one owned real estate, you may be required to sell it to disburse any funds to the beneficiaries of the will. Preparing the home, determining the value in the current market, and finalizing the transaction get added to what might already seem like a long list of responsibilities.

Now is a good time to call upon your support network. Your friends and family can help you sort through your loved one’s belongings and decide what to keep, what to donate, and what to discard. Decluttering is often the most difficult task to deal with, but a sparkling clean home can help you sell the house faster.

Minor repairs, such as updated hardware and lighting or a fresh coat of paint, can also bolster the results. There is likely no need to go overboard with renovations, plus keeping it simple could mean less stress and a faster process.

If the idea of preparing the house for an estate sale seems overwhelming, a local real estate team can recommend professional cleaners and tradespeople to handle most of the work. You will still need to go through the home to take stock of any valuables or keepsake items, but you can leave it to them to deal with everything else.

A successful estate sale is typically a team effort; having a support network around you will lead to better results for everyone. Once your tasks are complete, you can move on with your life while cherishing your loved one’s memory.

Do you have questions or need more guidance when managing Power of Attorney or an estate sale in Toronto? Our Midtown Toronto real estate team can help. Reach out to us at david@batorigroup.com, bobby@batorigroup.com or call (416) 485-7575 for more information. 

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