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Louisiana REALTORS Legal Hotline

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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All responses featured in the Hotline Archive are time sensitive. They reflect the law, regulations and ethical considerations in effect at the time of the response. Responses to the legal questions should not be construed as specific legal advice, nor are they designed to cover every aspect of a legal situation.

 


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