While the sale of a deceased estate broadly follows the same process as a standard property transaction, it demands a higher level of sensitivity, communication, and awareness of the needs of grieving families.
At some point in their careers, agents may be required to sell a deceased estate following a property owner’s passing, working closely with grieving families while navigating sensitive legal and procedural complexities.
According to Barry Plant Moonee Valley director, Bill Karp, agents should navigate deceased estates sales by efficiently communicating with parties, showing empathy, and being mindful to follow all legal directions.
When beginning the process, Karp said agents didn’t require any particular training or licence, but they should ensure the executor of the will had a probate from the court.
The probate refers to a court order that verifies a deceased person’s wish for the executor to manage their assets and distribute property to beneficiaries.
“I’m sure there’s been examples where an agent signed up someone to sell a property, and probate hasn’t been granted, and the solicitor will say, well, no, we can’t go to market,” he told REB.
“That’s sometimes where the inexperience of an agent comes in. So you’ve got to make sure you tick a lot of boxes on the way through before you hit the runway.”
Auction or private treaty?
While deceased estates can be sold via either auction or private treaty, Karp said in some circumstances, such as disputes amongst beneficiaries, an auction was best for transparency and avoiding future claims.
“If the sale has been privately done without going to market, the claim may have a greater opportunity to benefit the person claiming.
“They can argue that the property wasn’t put to market, it was sold privately, and the market never got a chance to buy their property in competition.”
He said generally, if the situation required an auction, the beneficiary would receive instructions from their solicitors in advance stating that the property could go on the market, and the mode of sale recommended.
If there was no specific legal advice, the agent could default to whichever mode of sale was best for the property as per usual.
Interacting with family members
When dealing with family members, Karp said agents should show empathy and understanding, given that everyone processes grief differently.
“We’ve all had to deal with those things in our lives, so the natural thing is, you’re a human being first, so get time to understand what people are going through,” he said.
Apart from being compassionate, Karp said agents needed to be sensitive to relatives’ needs, as they would often be attached to the property.
He said that agents could soften the blow by carefully considering the online promotion of the property, as some families may not want much marketing, and may not like the use of the term “deceased estate”.
“The reason for sale in the background is it’s a deceased estate, but it’s not something [that should be] plastered over the billboards and media and everything,” he said.
Karp said agents can also show attentiveness to the family’s needs by keeping ongoing, open communication with them, like informing them of inspection feedback and offers being made.
With beneficiaries often not being local to the property, Karp said agents may have to communicate by phone or email to a greater extent than in person.
“We just catch up like we normally would and have a good discussion about what’s going on, the feedback and how the program’s progressing towards getting a staff on it,” he said.
Navigating disputes
Karp said communication can also play a role in helping to avoid disputes between beneficiaries, as it ensures that everyone feels they are being heard.
He said that often parents choose one child as the executor of their will, and the other children may be resentful that the family member has control over major decisions.
Before communicating with beneficiaries, Karp said agents should seek permission from the executor, given that they are the client at the time and the representative of the estate.
“If I got a call from a beneficiary, I’d say, look, I’m under instructions, I’ve got to communicate this all through John, so I’ll give that feedback to John. As harsh as that sounds, that’s the reality of what we’ve got to do.”
Karp said the executor usually chose which agent to sell with, meaning the relationship between them was often solid.
“As long as you are communicating and doing the right thing by them and fulfilling the commitment you’ve made to them at the point of discussion when picking an agent, it’s fine,” he concluded.
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