Dear David,
My mom passed away suddenly last week. I am the executor of her estate. She’s had her house listed for sale for the past four months with no offers, and I have questions about how to proceed. Am I required to continue with the current listing agreement and keep the house on the market until the contract is up? If a family member wants the home, am I obligated to sell it on the open market? – AT A LOSS
DEAR LOSS: I’m so sorry to hear about the loss of your mom. At this difficult time, there is a straightforward way to approach her listing agreement: if your mom had left you the house outright in her will, you wouldn’t have any obligation to sell it or pay real estate fees, and the same principle applies here. The home was listed for sale, but when she passed, it became an asset of her estate. Assuming your mom owned her home solely, and because you are the executor of her estate, you now have the authority to decide how to proceed.
As executor, you essentially “step into the shoes” of the person who has passed and are responsible for managing their estate in the best interests of the beneficiaries. It’s up to you to decide whether the house stays on the market, whether to cancel the listing, or whether an entirely different plan makes more sense.
The listing agreement doesn’t automatically end if the seller dies. Technically, the contract probably continues with the estate, and an executor should be able to cancel a listing at any time and not be trapped in a contract until it runs to the end of its term. Real estate brokerages usually understand the sensitivity surrounding estate situations, and almost all will cancel the listing immediately if the executor requests it. You don’t owe the brokerage a commission unless the property sells through their efforts, or unless a buyer they introduced during their listing comes back (during the holdover period) and you sell the home to them directly.
The home was listed for four months without selling, which makes it perfectly reasonable to pause and reconsider your approach at this point. Market conditions may have shifted, pricing may need to be revised, or the home may benefit from a fresh marketing approach. As the executor, you are free to take a break during probate, request an updated valuation, or relist later with a different strategy or possibly a different agent. You don’t have to stick with a plan that isn’t working.
PRO TIP: In these difficult times, check with your lawyer. You are not required to keep the home on the market until the contract expires, or until you sell the home. If a family member wants to keep the house, it can be transferred or sold once probate is granted. As executor, you have full authority to make decisions that respect your mother’s wishes and support your family. #Advice #AskDavid #TheNegotiator
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