Prior to January 1, 1970, in Maryland
and January 1, 1981, in Washington, DC, title to a decedent’s
real estate passed directly to his heirs, regardless of whether the
deceased died testate (with a will) or intestate (without a will).
On and after the dates in question, the law in both jurisdictions
provides that title to estate property, including real property,
passes to the personal representative, the person or persons appointed
to administer and distribute estate assets. The remainder of this
discussion deals with the estates of decedents who have died on and
after the above-referenced dates.
The personal representative (PR) is appointed by the court, and
until such time as an appointment is made the title to the deceased’s
assets is in a state of “legal limbo;” there is literally
no one with the legal power to act to control or dispose of property.
A binding contract can only be executed by a PR.
In Maryland a PR may sell real property without obtaining a court
order. If, however, a property is to be sold for a sum less than
appraised value prudent practice would be to obtain an order authorizing
the sale, to insulate the PR (and the transaction) from attack
as a wasting of assets. Subject to the same caveat concerning low
sales prices, PRs of the estates of DC decedents who died on or
after July 1, 1995 do not need to obtain a court order to sell
real estate. If the DC decedent died prior to July 1, 1995, a court
order to sell is required.
A PR, being a court-appointed fiduciary, cannot delegate his authority
to another (not even to a co-personal representative) unless allowed
by the will or pursuant to court order. A PR cannot give a power
of attorney to another to perform any of the PR’s duties.
When co-personal representatives have been appointed, ALL must
sign any contract or deed, unless otherwise stated in the order
of appointment or the will, as the case may be.
If a deceased was a resident of a jurisdiction other than that
in which his real estate is located, his estate is properly opened
in his State of residence. As to his real estate in another jurisdiction,
his PR is considered a “foreign personal representative.” For
example, X, a DC resident, dies owning Maryland real estate; as
to Maryland, his PR is a “foreign PR.” In neither Maryland
nor DC are foreign PRs required to open duplicate estates in the
jurisdiction where the realty is located, but both Maryland and
DC have special requirements that must be met before the real estate
can be sold. In DC a foreign PR must file with the Register of
Wills a copy of his appointment and a copy of the deceased’s
will, if any. Notice to creditors must be published, and proof
of that fact filed with the Register. The PR must then either wait
six months before selling or, in the alternative, post a bond.
Maryland also requires notice to creditors; valid claims are a
lien against the realty or against sale proceeds. A Maryland PR
may sell estate realty located anywhere in the State; multiple
estate filings are not only not necessary, they are specifically
forbidden by law.
If you are dealing with estate property and there is any question
as how to proceed, do not hesitate to call us for a proper response.
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