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When a property owner passes away, the process for handling and selling real estate can vary depending on where the property is located. For real estate professionals and their clients throughout the DMV, understanding the differences between Virginia, Maryland, and Washington, DC can help prevent confusion and keep a transaction moving forward.
One of the most important distinctions involves what happens to title after the owner’s death—and who has the authority to sell or otherwise convey the property.
How Estates Work in Maryland and DC
In Maryland and Washington, DC, when a property owner passes away, title to the property passes to the legal entity known as the deceased owner’s estate. The estate becomes vested in title upon the owner’s death.
The probate court then appoints a Personal Representative to administer the estate. That individual is ordinarily empowered to manage the estate’s affairs and sell or otherwise convey the estate’s property as part of the administration process.
From a real estate transaction standpoint, this means the Personal Representative generally becomes the key party involved in moving the property toward settlement. Confirming that the estate has been properly opened and that the appropriate representative has been appointed is therefore an important part of preparing for closing.
Virginia Handles Real Estate Differently
When a Virginia property owner passes away, title automatically passes to the people named to receive the property in the owner’s Last Will and Testament. If the owner did not leave a will, title passes to the heirs who are legally entitled to the property.
As a result, determining who has an ownership interest in the property can be especially important when preparing a Virginia estate property for sale. The parties involved in the transaction need to understand who received title and who must participate in the conveyance.
What About an Executor or Executrix in Virginia?
Because title passes directly to the individuals identified by the will—or to the legal heirs when there is no will—a court does not ordinarily need to intervene in title matters simply to transfer ownership of the real estate.
There can, however, be unusual circumstances in which court involvement is necessary and an executor or executrix is appointed or authorized in connection with the sale of the property. Those situations should be identified and addressed early so that the appropriate documentation and authority are in place before settlement.
Why the Difference Matters at Closing
Estate transactions already involve additional documentation and coordination, and assuming that the process works the same way across Virginia, Maryland, and DC can create unnecessary delays. A transaction involving a Virginia property may require a different title analysis and different parties to sign than a similar estate transaction across the state line.