So this scenario came across my desk last week. A realtor called about a listing he had where the seller was an elderly person, and her affairs were handled by her daughter who had a Power of Attorney. The realtor called to ask what would happen if the seller were to pass.
By the time we connected on the phone, the seller did indeed pass. So what happens now? Well…the POA becomes ineffective. Title can eventually go into the executor’s name, but probate has to happen before the property can be sold. That means several months and many thousands of dollars.
If you are in this situation as a realtor, have a conversation with your client about adding a family member to title. If this particular client had of done this, we could file the death certificate today and the sale could go through tomorrow.
Note this is not appropriate in all circumstances, so when you chat with your client, tell them to speak to their lawyer about this. You do not want to give legal advice, so put into writing that they should consider this and speak to their lawyer.
Hope this helps you avoid the situation, good luck.
All the best, chat soon