Will a real estate contract be valid if the owner dies before closing?
Good question and this comes up frequently on real estate exams. If the seller dies BEFORE CLOSING. Before closing is the critical phase. From the moment the contract goes binding it is an executory contract which means a contract where the parties still have to perform some action. In the case of the seller they must sign or grant the deed to the buyer in order to execute the contact. If they die before the closing they can no longer execute their end of the contract. In fact they no longer have any interest in the property as the property now belongs to their heirs who are not a party to the contract. The purchase and sale contract is essentially null and void. However, if the seller had already signed the deed and delivered it to their attorney or the closing agent the sale could proceed and the proceeds of the sale would be delivered to the estate.