Sale of Real Estate in Decedent Estates and Conservatorships

 

 

Note:  The Court is prohibited by law (Sec. 1211 of the Estates and Protected Individuals Code [EPIC]) from providing legal advice and completing forms.  This item provides general information concerning the sale of real estate in decedent’s estates and conservatorships and may be useful as a guide.  If you have any questions, consider contacting an attorney for assistance.

Sale of Real Estate in Decedent Estate

Sale of Real Estate in Conservatorship

Procedures – Sale of Real Estate

Bonds

 

Forms Needed:   

Decedent Estate -  

(PC 681), Petition for Approval of Sale of Real Estate

(PC 682), Order Regarding Sale of Real Estate

Forms may be found at Michigan Court - Court Forms.

 

Conservatorship -  

(PC 646), Petition Regarding Real Estate\Dwelling

(PC 647), Order Regarding Real Estate\Dwelling

Forms may be found at Michigan Court - Court Forms.

Filing Fee - $20.00

 

Sale of Real Estate in Decedent Estate

 

Prior court approval of sale of real estate is not required in decedent estates unless the letters of authority are restricted.   

 

The Wayne County Probate Court typically restricts the letters of authority on estates that were opened using a formal petition (as opposed to an informal application) to prevent the personal representative from selling real estate until court approval is obtained.  MCR 5.202.   

 

 

Sale of Real Estate in Conservatorship  

A conservator is restricted from selling or otherwise disposing of or to mortgage, pledge, or cause a lien to be placed on real property without court approval, pursuant to a hearing, at which the court considers evidence of the property’s value and otherwise determines whether the sale is in the best interest of the protected individual.  MCL 700.5423(3).     

The Wayne County Probate Court, as additional insurance, also restricts the letters of authority for conservtorships to prevent conservators from selling real estate until court approval is obtained.  MCR 5.202. 

 

 

Procedures – Sale of Real Estate

 

Forms Used - Decedent Estate – Petition for Approval of Sale of Real Estate (PC 681); Order Regarding Sale of Real Estate (PC 682).   

Forms Used - Conservatorship -Petition Regarding Real Estate\Dwelling (PC 646); Order Regarding Real Estate\Dwelling (PC 647).

 

The petition to approve the sale of real estate must contain the terms\purpose of sale, legal description, and estate’s financial condition prior to sale.  MCR 5.207(A)(1)-(3).  Instead of a written description of the terms, a copy of the purchase agreement or deed that details the terms may be attached.   

The petition must also contain the most recent statement with the state equalized value (SEV) listed.  A petitioner may submit and\or the Court can order a written appraisal, if it is not satisfied that the evidence demonstrates the fair market value.  MCR 5.207(A)(4).  

 

Bonds

 

The court can require the filing of a surety bond for the sale of real estate in decedent estates or conservatorships.  A bond is an insurance policy which is purchased (the cost is payable from the estate or conservatorship) from a company.  It is not a bail bond – i.e., money is not deposited with the court.     

 

If a bond is set, it must be filed prior to approval of the sale.      

 

Rev. 4/14