How is a Palo Alto Trust Sale Different From a Regular Sale
A trust sale is not the same as a regular sale. But the differences are not that great. It is actually a much more simple process than a probate sale, and a world away from a short sale or foreclosure.
In a trust sale, the owner of a property has passed away and the home is being sold to settle an estate. The seller of the house is the successor trustee to the estate and is charged with disposing of the assets of the estate to be distributed to the heirs. The successor trustee can be anyone the owner appointed, a child or other relative, a trust department from a bank, a professional like a lawyer or accountant.
Certain rules apply:
1. The house is sold “As Is”
2. Disclosures are limited. You will not be given a transfer disclosure statement, a seller’s supplemental disclosure, an earthquake hazard report, or a signed Natural Hazard Disclosure. You will be given the report, but the successor trustee does not have to sign it.
3. The water heater needs to be strapped but there is no smoke detector requirement for a trust house.
4. If the successor trustee has information about the house they have to give it to you, but they may not know much. For example, if the successor trustee is a child of the owner and was involved in repairs on the house they will need to disclose that.
5. All heirs to the estate are given a Notice of Proposed Action to sell the home. If this is not done until after an offer is accepted by the successor trustee then they have 45 days to return the notice or any objections, so escrow can not close before then. If they are given that notice before the house goes on the market and waive the waiting period then escrow can be shorter than 45 days.
If you have any questions about buying or selling a home in a trust please feel free to contact me.
Keller Williams Realty