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LEGAL
HOTLINE ARCHIVE
Estate Sale
Q. An
agent in my office has been contacted by an attorney to list a house
that is an estate sale. The succession is not complete. Is there
a new law or change in the law that allows me, the agent, to list
the house and not include the language that the "sale of the
property is subject to court order." The executrix does not
want the language on the MLS flyers etc. How do I handle this? What
other avenues of resources do I have available?
A. There has been a recent change in the law which allows
certain executors to sell real property belonging to a succession
without the necessity of a court order. Act No. 974 (the "Act")
was passed during the 2001 Regular Session of the Louisiana Legislature.
It became effective August 15, 2001.
The Act allows
a succession representative (an executor) to petition the court
to allow the succession to be independently administered. As long
all requirements of law are met, a court must grant independent
administration when requested. Generally, the person petitioning
to be an independent administrator must be qualified to act as such
and all of the universal legatees of the succession must agree to
the independent administration of the succession.
Once independent
administration is approved by the court, the court will grant letters
of independent administration. The executor is thereafter referred
to as an independent administrator. The letters of independent administration
grant the independent administrator the right, power and authority
to act with respect to succession property without the necessity
of delay for objection, or application to, or any action in or by
a court. The powers of independent administration include the right
and authority to sell immovable property owned by the succession,
without advertisement or court approval.
The Act was
designed to allow a succession representative to act without being
encumbered by formalistic procedural rules, which are sometimes
unrealistic and impractical. The Act was also designed to reduce
the time involved in administering an estate, as well as to reduce
the legal fees and court costs associated with ongoing administration.
If an independent administrator deals with the property of the succession
on terms which are unfavorable to the succession, the independent
administrator has to account for such actions. Successors and creditors
can oppose independent administration at the outset or at any time
after independent administration has begun.
Thus, if the
succession attorney can provide proof that the succession is under
independent administration it may not be necessary to include language
in the listing that the sale is subject to court order. You should
also consider whether letters of independent administration have
been issued by the proper court and whether such letters have not
subsequently been withdrawn.
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