Administrator
An Administrator is a court-appointed fiduciary responsible for managing and settling the estate of a deceased person who died without a valid will (intestate) or failed to name an executor. While an executor is named specifically by the deceased in their will, the probate court selects an administrator, often a close relative, such as a spouse or adult child, to step into that role. In the context of real estate, the administrator holds the legal authority to maintain, manage, and transfer property owned by the estate.
Purpose and Function
The primary purpose of an administrator is to ensure the orderly and legal transfer of the deceased’s assets, while protecting the interests of creditors and lawful heirs.
- Fiduciary Responsibility: The administrator acts as a fiduciary, meaning they are legally obligated to act in the best financial interests of the estate. They must preserve the value of assets, including real estate, until they can be distributed or sold.
- Settling Debts: Before any property can be transferred to heirs, the administrator must ensure that the estate’s debts, including mortgages, taxes, and creditor claims, are satisfied.
- Distribution of Assets: In the absence of a will, the administrator distributes the remaining assets according to the state’s laws of intestacy, which dictate the hierarchy of heirs (e.g. spouses, children, parents).
How It Is Used
The role of an administrator becomes active once the probate court issues “Letters of Administration,” the official legal document granting them authority.
- Authority to Sell: If the estate is cash-poor but asset-rich, or if the heirs prefer cash over physical property, the administrator is responsible for listing the real estate for sale. They sign the listing agreement and the deed on behalf of the estate.
- Property Maintenance: During the probate process, the administrator must ensure that real estate assets do not deteriorate. This involves paying ongoing expenses, such as homeowner’s insurance, property taxes, utility bills, and mortgage payments, to prevent foreclosure.
- Court Supervision: Unlike some executors granted broad powers by a will, an administrator’s actions, especially the sale of real estate, often require closer supervision or specific approval from the probate court to ensure fairness to all potential heirs.
Importance in Real Estate Transactions
The appointment of an administrator is a critical legal prerequisite for selling a home owned by someone who died intestate.
- Clear Title: Title companies cannot issue title insurance or approve a closing without proof that the person signing the deed has the legal authority to do so. The administrator provides this link in the chain of title.
- Preventing Fraud: The court-vetted process of appointing an administrator helps prevent unauthorized family members from selling property they do not have the right to convey.
Timeline Implications: Transactions involving an administrator often take longer than standard sales. Buyers must be aware that the sale may depend on court timelines and the administrator’s ability to clear any disputes between heirs.
