Selling an inherited apartment in New York City takes more than a listing when someone is still living there. If that person isn’t on the deed, the executor can end up managing a court case, a negotiation, and a building’s repair schedule at the same time, often from out of state.
Daniel M. Berger, a Licensed Broker/Owner in New York and Connecticut with RE/MAX Prestige Properties, recently handled this kind of sale for a two-bedroom condo in Harlem. Daniel specializes in Westchester County, NY, and Fairfield County, CT, and the executor, who lived out of state and was settling a brother’s estate, connected with him after posting in a Facebook group. The sale points to several things executors should plan for before an occupied estate property goes on the market.
The late owner had the Harlem condo and a summer house. He lived with a partner who was not his spouse and had no ownership in either property. After he passed away, the locks on the condo were changed while the partner was at the other home, and the situation quickly ended up in court.
“New York City is pretty tenant friendly,” Daniel says. In this case, the court treated the partner much like a tenant with certain rights, even without any ownership stake. That meant the estate could not simply clear the apartment and list it.
For executors, the takeaway is to find out early who is living in the property and on what basis. Acting on your own, such as changing the locks, can lead to court involvement and delays that put the sale at risk.
Daniel is clear that an agent’s job is not to practice law. “I’m not doing the legal work, but I brought in the legal team,” he says. He compares a listing agent in a sale like this to a quarterback who makes sure the right people are handling each piece.
Here, that meant two attorneys. A lawyer Daniel works with often handled the sale itself, and a second lawyer handled the court matter. The partner largely represented himself and filed papers in the New York City court system, and each filing needed a response. There were also tax items to resolve before closing.
Getting this right was not optional. “If we didn’t properly get the tenant to leave, the deal would have fallen through,” Daniel says. Executors should expect an occupied estate sale to involve more professionals than a typical listing and should line them up before problems surface.
Neither side was happy with the other, and Daniel was in the middle. “I kind of became Switzerland,” he says. When the court set a rule, he told the estate it had to follow it. When the court said the partner was allowed access, Daniel made sure access was provided.
The dispute was settled with a cash-for-keys agreement, where the occupant receives a payment in exchange for moving out. The estate started low, and the partner started high. Because both sides were willing to talk to Daniel, he helped them work toward a number that made sense to each.
The court then set a day and time for the partner to remove his belongings with an overseer, and the court papers required Daniel to be in the apartment during the move-out. Everything had to be cleared, but carefully, since the items belonged to the partner and could not simply be thrown away. An agent whom both sides trust can keep a negotiation like this from stalling.
The legal process did not stop the marketing. The apartment was well decorated, and even though the floors, bathrooms, and kitchen were dated, it showed well. Daniel had it professionally photographed, held open houses, and promoted it online. The move-out did not happen until the condo was already under contract.
Repairs needed attention too. A plumbing leak turned up, and in a New York City building, plumbing work usually means coordinating with the superintendent to shut off the water. The first plumber visit fell through when the super was not there. Daniel set up a group text with the plumber, one of his clients based in the Bronx, to get the work rescheduled and done.
The condo was listed at $799,000 and sold for about $770,000 after roughly two months on the market. The executor had spoken with three or four agents before choosing Daniel, largely because he responded right away, followed up by phone and text, and visited the condo in person. Daniel says his familiarity with Harlem had little to do with how the deal came together. What mattered was being available, communicating with everyone, and bringing in the people who could solve each problem.
Difficult sales like this one are the focus of Daniel’s book, Adventures of a Real Estate Broker, and his podcast.
Daniel M. Berger is a Licensed Broker/Owner in New York and Connecticut with RE/MAX Prestige Properties. He specializes in Westchester County, NY, and Fairfield County, CT.
This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.
Disclosure: Individuals or companies mentioned may have a commercial relationship with KeyCrew.
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