Understanding how an executor operates can be quite relevant in real estate investing, as they can potentially control the sale or distribution of real property after someone’s death.
An executor, more generally, is a person or institution appointed by a testator (the person who makes a will) to carry out the terms of their will. The executor’s main responsibility is to manage the estate within the terms of the will and protect the assets of the deceased until the probate process is over.
When it comes to real estate, this can include dealing with any property the deceased owned. Responsibilities can include selling real estate, collecting rent, maintaining and repairing properties until they can be distributed to the heirs or sold, and paying any mortgages or other expenses associated with the property.
For real estate investors, knowing how to work with executors can lead to investment opportunities. Executors may be willing to sell properties under probate, especially if the sale can help resolve debts or simplify the estate distribution. Such properties might be available at below-market prices, although the probate process can also lead to complications and delays. Thus, the role of an executor is an important aspect of real estate investment, especially in the areas of probate and estate sales.