What happens when escrow is about to close on a home and the buyer passes away? Does the seller receive anything or does the house go into the buyer's estate?
Answer
That's a really interesting question. I am pretty sure it depends on whether or not it is an all-cash sale. The lender would not close a loan when the borrower has died, but in an all-cash sale I think the buyer's estate is obligated to complete the transaction unless the seller elects to terminate the sale due to the delay in closing. I'd have to do some research to be sure, though, and that's really beyond the scope of a free question here.
Answer
I agree with Mr. McCormick. I think it depends on where exactly in the escrow process the parties were when the buyer died, and the structure of the escrow. And that is a really good question by the way.
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