The Solution

MaxPro Realty Partners, its employees, subsidiaries, affiliates, associates and partner companies recognize that their Single-Family and Multi-Family divisions are involved with many individual buyers that have never owned a home before, are possibly new to this country and may not even speak English.
The company, with its title experts and legal counsel, specialize in acquiring abandoned, tax-delinquent and/or mortgage defaulted properties that many times have code violations, harbor vagrants and are magnets for criminal activity. We refer to these abandon homes, as ‘Estate Properties’ and sometimes ‘problem properties’.

The Solution…

First, this applies solely to property left by a deceased owner who had no devising the property to someone or provide for an executor. While the ultimate responsibility and cause of this are the heirs that refuse to work together (if there is no will). But sometimes there are heirs who want to solve it, but they cannot solve the problem themselves. There are laws that can help, and use of these laws can be used to protect ‘all interested parties’. (see Texas Statutes and Case Laws here)

Two Solutions…

1. A Solution done by ‘an Heir’.
2. A Solution done by MaxPro.

A Solution done by ‘an Heir’. – an Heir ( any heir, regardless of their ownership % even if it is 1% or less than 1% ), can force a sale on the property in the Courts. They can file a Suit for Partition . Yes, this takes money and time. And you would probably need an attorney to do it for you. And this will probably cost between $1000 to $5000 or more. But ‘any joint owner can compel partition of real or personal property’ {Texas Property Code § 23.001} by filing a suit for Partition’, to compel the court to order the sale of the property. In this case the court will need to send notice to all heirs (known and unknown). If they cannot find all the heirs, then a public notice will be done in newspapers to meet the legal obligation. And then the sale will be done by the Constable’s Office. The proceeds of the sale will go to the court, and all taxes and code violations will be paid from these funds before they are paid out to the heirs. The court would decide what would be paid out and to whom. And only after all court costs and attorney expenses are also paid from the sale before the judge determines what each individual heir is to receive. It is costly and sometimes not worth the 1-3 years and up-front money for an heir to take on the task.

NOTE : Right of First Refusal - If one ‘partial owner’ lives on the property, the court will typically use ‘Case Law’ to determine before they will ‘order the property sold at auction or by an agent’ will usually give the ‘partial owner’ that lives on the property the right to buy out the other heirs ‘at a price determined by the judge’. And if the heir does not or cannot, then will typically proceed with the sale process.

This is done under Texas Property Code Chapter 23 and Chapter 23A (Uniform Partition of Heirs Property Act – UPHPA)

A Solution done by MaxPro – MaxPro does the same thing as an Heir, almost.

1. MaxPro will typically only seek to acquire property interest in ‘vacant’ properties and typically we do not get involved when there is one of several heirs that lives on the property. We understand some heirs need the property as their home and we do not get involved. Thus, usually always vacant, abandon homes only.
2. We acquire all heir’s interest that want to sell. Even if we can only acquire 1% {Texas Participation Principles – Each co-owner has a fundamental right to partition, to prevent being forced to remain a joint owner against their will}.
3. Once all deeds acquired are filed, an adverse claim is made on the other interest just to start the 3-year and/or 5-year statute of limitations, to eventually clear the title on the rest of the heirs in 3-5 years if we cannot find or acquire their interest.
4. MaxPro begins cleaning up the property and paying on the taxes.
5. MaxPro may or may not renovate the property. And may sell the property to a home buyer either renovated or as a ‘renovation required’ property to someone that will renovate the property. In the sale documents the Buyers are made aware of all the issues, including ‘partial ownership’ with outstanding heirs, which they are protected by of this issue by MaxPro and Legacy Title Protect.
6. Due to the laws afforded to the individual heirs, including to the heir that was living in the property that will typically be given the Right of First Refusal (see above), if an heir seeks either to be paid by the homeowner, or files a Partition Suit – the homeowner is protected by MaxPro and Legacy Title Protect to be responsible to pay the heir under the guidelines of Texas Property Code Chapter 23, 23A and Right of First Refusal

FURTHER…

1. Typically, MaxPro will send out periodic notices to any heirs that they are aware of their address, notices that they are owed funds related to the property if they contact MaxPro’s attorney. So, their interest can be paid. The heirs that we do not know where they are usually due to 2nd, 3rd and even 4th generation heirs that typically did not even know their prior ancestors – we have no ability to get any information on.
2. Just prior to the 3-year / 5-year statute of limitation coming up, MaxPro will again to send notice to the heirs of their time running out to accept a settlement.
3. Typically, even for 6 months ‘after’ the statute of limitations has run out, MaxPro is willing to pay out heirship payments. Thereafter, depending on the situation, sometimes MaxPro will send a lesser payment by check to heirs that do not want to sign anything, just as a courtesy as there is no need for them to sign a deed or heirship affidavit.

This process is not without its issues.

Let It Set As Is

Some heirs just want the property to be left ‘as is’, ignoring the massive financial burden it is causing on the City, County and on the neighbors near the property as well as neighbors inability to sell their own homes and constantly having to call police to the property, injuries to their children by glass and nails and other things that were due to the property. And some neighbors having to mow and groom property they do not own – just to not be embarrassed when their friends come over. There is the occasional upset heir thinking it is wrong to take this action. But in reality – the harm is by them wanting to keep it as is, putting the constant physical burden and financial responsibility on the City, County, Neighbors, Police, Constables and Code Officers.

We do everything we can to make this process balanced and beneficial to all, including the heirs that prefer to let it be a problem.

Contents of the Property

Another issue pops up, if there are physical items in the property of the deceased individuals. Usually, these properties have been vandalized many times and there is nothing of value in the property. But not always. Sometimes there are historical or family value items. These items do not belong to a single ‘heir’ or ‘equity possessor’ like the individuals we sell the property to, therefore MaxPro uses a 3rd party to carefully ‘photograph’ and ‘catalogue’ and then pack all items to be put into storage.

The company will then put the items in Public Storage close to the property, and give the keys to an attorney, who will give notice initially to the ‘direct descendants’ of the deceased individual, with a link or contact to the attorney to receive an email list and photos of the items and such items are in storage for 1 year at the company’s expense. And if they want a key, they will sign a notice that they have taken responsibility for the items. There is no expense or payment required of the heir. Also, the buyer of the property is given several copies of this notice – so if an heir comes to the property, they will know how to contact the attorney that is responsible for getting a key to the storage to the heir.

If no response is received, the attorney will send out notice every 3 months for a total of 6 months. After that ‘all heirs’ will be notified every 3 months for another 6 months. After that, the company will pay for 2 more months, with notices going out every 2 weeks advising that there are only 2 more months until the items will be left in storage and most likely the storage company will sell the contents at an auction if no heir takes any action to retrieve the items for free after the 1 year and 2 months.