Seller dies before closing...

Has anyone ever been in this situation? I'm not trying to sound insensitive. I have a signed contract was a few weeks away from closing. The sellers daughter has been handling most of the affairs. Now apparently the sellers health has rapidly deteriorated and isn't expected to make it long.

The bank is trying to put a rush on things because my broker said if he dies before we close, it's a legal nightmare.

I actually feel for the sellers daughter. Must be a very stressful time. Has anyone been in this situation before? What should I expect if he passes before closing?

Re: Seller dies before closing...

My mother had power over attorney for a friend of hers. Weeks before from the closing on the house she passed away and I think it took a year for them to close after that. She was not well, but they were not expecting this to happen at all.

Hopefully they can rush things for you... or maybe some sort of documentation can be signed do the daughter can do it with out any complications?

Seller dies before closing...

The daughter has power of attorney but that isn't valid after his passing

Seller dies before closing...

My mother passed while we were in contract for her co-op. It was sudden, but not sudden.
We had spoken to the attorney for my mom and started all the paperwork for when she did pass. Closing went off as scheduled and the funds were split between me and my brother at closing. It caused no delays or problems.
Both my brother and I were POA for my mom. He handled all the house sale issues. But I know that he worked with our attorney to make sure that there would be no problems if she passed before closing. After she passed, he became the executor of the estate and that is how they closed on the co-op. But, like I said, it did not cause delays and actually we closed before we thought we would.

Seller dies before closing...

I would imagine the home needs to be left to the daughter in a will that way it is hers outright.

Re: Seller dies before closing...

If your contract is a standard Blumberg form (which in all likelihood it is or a variation of it), there is a paragraph, usually towards the end of the contract itself, that says something to the effect that all heirs are bound to the terms of the contract. If that wasn't stricken from your contract (I insist on striking this language but some attorneys do not), then the daughter is bound to sell the house. Check your contract. Even if the daughter signed it as the POA, she was still acting on his/her behalf while still alive so she is bound to the terms of the contract.

It will not necessarily become a "legal nightmare" but it may take more time.

Re: Seller dies before closing...

I'm just concerned any delay may make me lose my locked in rate. Unless rates go back down... Then I don't care. Lol

Re: Seller dies before closing...

I have no idea if this an even be done but....I would ask to see if the deed can be transferred to the daughter or her heirs with the mom retaining a life estate or something to that effect. So if she passes away before closing the deed was already transferred to the heirs and they can continue with the sale.

Seller dies before closing...

I agree have them transfer the deed to the daughter is properly the best way

my parent moved up the closing on their house by 2 weeks - my dad literally left in the middle of the us open tennis on a Friday because they did not think the women would make it through the weekend - but they paid cash so it was easy to move the closing up- plus there was no will and the property would go into the probate court