Rule 68 Sales Contracts

When someone dies and leaves property behind, the person in charge of handling the estate (called the personal representative) may need to sell real estate that belongs to the estate. This rule explains what needs to be in the sales contract when that happens.

The contract must clearly describe the property being sold and include the buyer's name and address. It also needs to say whether an escrow agent will handle the closing. If the will or an heir requires it, the contract must state that the sale, along with any fees paid to real estate agents, might need court approval and could be subject to other buyers submitting higher offers before the sale is final.

The contract must also say that the property is being sold "as is," meaning the buyer takes it in its current condition. The property will be transferred using a quitclaim deed or a limited warranty deed, which offer less protection to the buyer than some other types of deeds. Buyers must put down a deposit, either $5,000 or the full purchase price, whichever is smaller. The personal representative signs the contract and either holds onto this deposit or gives it to the escrow agent to hold until the sale closes.