How to Sell a House as a Successor Trustee in Sacramento
If you've recently become the successor trustee of a living trust in Sacramento, you may be wondering: Can I sell the house?
In many cases, the answer is yes. A successor trustee may have the authority to sell trust-owned real estate without going through probate. However, being named in a trust does not mean you should immediately put the property on the market.
Before selling, it's important to establish your authority, gather the appropriate documents, understand the property's value, and evaluate the options available to the trust.
Watch my video above, or continue reading for an overview of the trust home-selling process.
1. Understand Your Authority as Successor Trustee
A successor trustee is the person designated to take over management of a trust when the previous trustee passes away, becomes incapacitated, or another event specified in the trust occurs.
When a home is properly held in a living trust, the successor trustee may be able to sell it without opening a probate proceeding for that property.
However, the trust's terms and the circumstances surrounding the change in trusteeship matter. Before signing a listing agreement, confirm that you are the acting trustee and have the authority required to sell the property.
If you are uncertain about your authority or the trust's instructions, consult the attorney handling the trust administration.
2. Gather the Documents Needed for the Sale
Once your authority has been established, gather the documents that may be needed to list the property and complete the sale.
Depending on the trust and the title company's requirements, these may include:
- The trust document and any amendments.
- A certification of trust.
- A certified death certificate, when applicable.
- An affidavit of death of trustee, when applicable.
- Other documentation requested by the title or escrow company.
The exact documents needed will depend on the circumstances. Identifying those requirements early can help prevent avoidable delays once the property is under contract.
3. Determine the Property's Value Before Accepting an Offer
Successor trustees sometimes receive unsolicited calls, letters, and text messages from investors offering to purchase the property for cash. A quick sale may sound appealing when you're managing an unfamiliar responsibility.
Before accepting an offer, I recommend obtaining a comparative market analysis from a real estate professional who understands trust sales.
The analysis should consider the property's location, condition, comparable sales, and current market conditions. It can help you evaluate the investor's offer alongside the potential results of marketing the home to a broader group of buyers.
Compare the net proceeds, not just the purchase prices. Ask for a side-by-side estimate showing what the trust might receive from an investor offer compared with a publicly marketed sale, after estimated commissions, escrow fees, closing costs, and other relevant expenses.
A cash offer may have advantages, such as fewer contingencies or a shorter timeline. Open-market exposure may attract competing offers, including offers from other investors. Comparing the actual numbers and terms can help you make an informed decision.
4. Consider Your Responsibilities to the Trust Beneficiaries
As a successor trustee, you have responsibilities under the trust and applicable law. Decisions about selling trust property should be made with those responsibilities in mind.
This is one reason I encourage trustees to evaluate the property's market value and the estimated net proceeds before agreeing to a sale.
If there are questions about the trust's terms, beneficiary interests, or whether a proposed transaction is permitted, those questions should be addressed with the trust attorney before proceeding.
5. Choose a REALTOR® Who Understands Trust Sales
Selling trust-owned property can involve documentation, title requirements, and seller disclosure considerations that differ from an ordinary owner-occupied home sale.
When interviewing real estate agents, ask about their experience with trust transactions and how they plan to prepare, market, and negotiate the sale of the home.
A trust attorney may recommend an agent, and that recommendation can be a useful starting point. You can also interview other agents to compare their experience and proposed marketing strategies.
Your attorney handles the legal questions involved in trust administration. Your real estate professional should bring the property valuation, marketing, negotiation, and transaction experience needed for the home sale.
Selling a Trust-Owned House in Greater Sacramento
Serving as successor trustee is a significant responsibility, especially when the trust includes a home that needs to be sold.
Establish your authority, gather the required documents, understand the property's value, and compare your sale options before making a decision.
If you're responsible for selling trust-owned real estate in Sacramento or the surrounding communities, I can help you navigate the real estate side of the transaction and evaluate your options.
Need Help Selling a House as Successor Trustee?
I'm Brendan Mohr, a Greater Sacramento REALTOR® and C.A.R. Certified Probate & Trust Specialist. I help successor trustees and families prepare, market, and sell trust-owned real estate.
Call or Text: 916-704-6095