Selling Real Estate from a Decedent's Estate: A Guide for Michigan Personal Representatives

Dealing with real estate within the administration of a decedent's probate estate can be a challenging process. However, the State of Michigan has guidelines for personal representatives seeking to sell real estate assets under their authority. In this post, the experienced probate attorneys of Thompson Legal explain the authority of a personal representative to sell real estate and the process for requesting court approval.

Please note that this post is not exhaustive, and every situation is unique. In the event that you have questions about a real estate sale in your specific case, it’s advisable to speak with a probate attorney. Contact Thompson Legal to schedule a discovery call with a Michigan probate lawyer.

I. Authority to Sell Real Estate

Michigan law, specifically MCL 700.3715, grants personal representatives the authority to sell real estate within a decedent's probate estate. However, this authority may change based upon the case factors and best interest of the Estate. To determine if you are required get court authority, it is best to check the restrictions on your Letters of Authority.

Self Dealing

One important consideration to make is that fiduciaries are prevented from self-dealing pursuant to MCL 700.1214, and any transfer of estate property to themselves can be voidable by an interested party. For that reason, if you are transferring any interest in the real property to yourself, it is recommended to get a court order affirming the transfer.

II. Petition for Approval for the Sale of Real Estate

When seeking court approval for the sale of real estate in Michigan, personal representatives should follow a structured process, which includes using the official State of Michigan form, PC 681. Here's a basic guide:

A. Download PC 681

1. Visit the official Michigan Courts website: https://www.courts.michigan.gov/siteassets/forms/scao-approved/pc681.pdf.

2. Download and print the form for use.

B. Complete the Form

1. Fill out PC 681 accurately and legibly.

2. Provide detailed information about the real estate property to be sold.

3. Include a description of the proposed sale, including the sale price and terms.

C. Attach Required Documentation

1. Gather all supporting documents, including the proposed purchase agreement, property appraisals, and any other relevant paperwork.

2. Ensure that the documentation is complete and organized.

D. File the Petition

1. Submit the completed PC 681 and all supporting documents to the probate court in the county where the estate is being administered.

2. Pay any required filing fees.

3. Receive a Notice of Hearing to bring the issue before the court.

E. Notice to Interested Parties

1. Provide notice to all interested parties.

2. Notify heirs, beneficiaries, and creditors about the pending sale.

F. Attend the Hearing

1. After filing, attend the court hearing where the judge will review the petition and consider any objections.

2. Be prepared to address any questions or concerns raised during the hearing.

G. Await Court Approval

1. Once the court approves the sale, you will receive an order granting permission to proceed with the sale. If you are planning to record the order with the register of deeds, make sure to get a certified copy.

2. Comply with any conditions or requirements outlined in the court's order.

Conclusion

Selling real estate from a decedent's probate estate in Michigan is a process that balances the protection of the estate's assets and the interests of its beneficiaries. With careful planning and compliance with legal requirements, personal representatives can successfully navigate the sale of real estate assets while preserving the integrity of the probate process. If you are involved in a Michigan probate estate and have questions about the sale of real estate, contact Thompson Legal to schedule a discovery call with an experienced Michigan probate lawyer. 

This blog is for informational purposes only. It is not intended as legal advice. In the event you would like to speak with a probate lawyer about your case Contact Us at (734) 743-1646 to schedule a consultation.