When a seller passes away before a real estate closing, the transaction does not automatically end, but it rarely proceeds on the original timeline either.
What happens next depends on how the property was owned, whether the seller left clear estate documents, and who has legal authority to act on behalf of the estate.
For buyers and sellers’ families alike, this moment introduces uncertainty that feels both emotional and procedural.
Why Power of Attorney No Longer Applies
One of the first questions is whether the seller had the legal ability to transfer the property at the time of death.
A power of attorney does not survive death, even if it was properly executed and in effect the day before. That means an agent under a power of attorney can no longer sign closing documents once the seller has passed.
Authority to sell must come from the estate, not from previously granted personal powers.
How Probate Can Affect the Timeline
If the property was owned solely in the seller’s name, probate often becomes part of the picture.
A probate court may need to formally appoint an executor or administrator before anyone can sign on behalf of the estate. That appointment takes time, and until it happens, the transaction usually pauses. One of the issues is the rights of creditors to make a claim against estate assets. That right exists for six months after the death of the decedent.
Even when a will exists and clearly names an executor, court approval is still required before the sale can move forward.
When Ownership Structure Changes the Outcome
Ownership structure plays a major role in how quickly a transaction can resume.
If the seller owned the property jointly with rights of survivorship, the surviving owner may automatically become the sole owner, which can allow the sale to proceed with few delays. If the property was held in a Trust, the Trustee may already have authority to complete the transaction. This assumes the Trust documents are clear and properly drafted, and the property was deeded into the Trust, so that a Trustee can deed out of Trust.
These distinctions explain why similar situations can unfold very differently.
What Buyers Should Expect Next
For buyers, the biggest concern is whether the contract is still valid and whether at closing the title will be clear.
In many cases, it is, but timing becomes the issue. Financing approvals, rate locks, and moving plans do not always align with probate timelines. Buyers should expect a period of uncertainty while legal authority to sell is confirmed and documented.
Some transactions resume without disruption once that authority is established, while others require extensions or contract amendments.
How Legal Guidance Helps During an Unexpected Delay
Families are often surprised to learn that even a signed contract does not bypass estate requirements.
Closing still requires proper authority, and rushing the process can create avoidable complications. Having an experienced real estate attorney involved helps clarify what can happen next, what delays are normal, and how the transaction can ultimately move forward with fewer surprises for everyone involved.
The Minchella & Associates Difference
With over 40 years of experience in Illinois real estate law, Erica Minchella has represented thousands of home sellers and buyers, landlords, and commercial and investment property owners.
For more information, schedule a consultation today.
