If you’re reading this, you or someone you know in the Greater Vancouver area is likely in a sensitive situation and needs guidance selling a family member’s property.
Having supported numerous families with estate sales, I know that clear and thoughtful communication throughout the entire process is critical, and I aim to take a balanced approach to managing the emotional and technical aspects of the experience.
I’ll cover some of the basic scenarios and next steps. As a general disclaimer, the information provided here is not meant to replace legal advice, and I encourage you to speak with a lawyer. Please contact me for recommendations and a complimentary real estate consultation.
Here are the 3 general topics I will cover:
- Power of Attorney / Enduring Power of Attorney
- Estate Sale (Will)
- Administration (No Will or unclear Will)
Enduring Power of Attorney (EPOA)
An Enduring Power of Attorney (EPOA) is a legal planning document whereby the property owner designates an Attorney (usually a family member) to act on their behalf with respect to certain financial affairs. This is effective while they are alive, regardless of their mental and physical capacity in the future.
An EPOA is different from a general or non-enduring POA which ends if the person who made it (the property owner) becomes mentally incapable. In real estate, we most commonly work with Enduring Power of Attorney documents. The distinction is important and a free copy from Part 2 of the BC Power of Attorney Act can be found HERE.
For real estate purposes, it’s typically easier to process the sale of a loved one’s home via Enduring Power of Attorney than an Estate Sale. The seller retains the proceeds of sale, and the seller’s Will will usually determine next steps.
For anyone downsizing, they may call on the support of a family member to sign the purchase and sale documents via a POA, even though they are present during the process. This helps provide reassurance and confidence that the downsizing process is in their best interest.
Moving at any age is stressful, and it’s particularly stressfull for individuals well into their senior years. The goal in this scenario is maximize the sale of their family home, and create a smooth transition to a clean, fresh, and smaller home that better suits their needs. I always encourage trusted relatives & friends to be a part of this process. Downsizing is truly the ideal scenario.
Estate Sale
An Estate Sale is the sale of a person’s property who has passed away, and probate has not yet been granted. In an Estate Sale, that Will designates an Executor of the Estate. Upon review of the title and estate documents, I can proceed with the sale of the property at the direction of the Executor.
It’s recommended to wait until probate is “registered” before listing the property for sale on MLS. The listing process includes a full consultation to review pricing, potential improvements to the property (if desired), and a detailed review of the steps to selling.
Having sold several estate sales, I know that clear and thoughtful communication throughout the entire process is critical, and I aim to take a balanced approach to managing the emotional and technical aspects of the experience.
Administration
In situations where there is no will or the will does not clarify matters related to real estate, the courts require Letters of Administration instead of Grant of Probate. In this case, the Adminstrator (instead of the Executor) will have the authority to sign on behalf of the seller.
The key difference is that the Adminstrator cannot proceed with listing and selling the property until the Letters of Administration has been provided by the court. This often leads to a relatively longer process than an Estate Sale and is considered the least favourable scenario depending on the family dynamics and court proceedings.
Summary
Pre-planning is always best, and in far too many cases I see elderly people live in unfavourable conditions because they do not have the support to downsize and live their best lives while they are healthy. Family intervention is key and having the right support system. Your Realtor and Lawyer are critical factors in this process and I take tremendous care and effort to support families going through a real estate transition.
Need more help?
Vassi Balatico / 778-688-4948 / vassi@vassibalatico.com