In real estate, what does "probate" refer to?

"Probate" specifically refers to the legal process used to settle the estate of a deceased person. This process generally involves validating the deceased's will, if one exists, and then ensuring that their assets are distributed according to their wishes or, in the absence of a will, according to state laws. During probate, debts of the deceased are settled, and assets are inventoried and appraised before they are distributed to heirs or beneficiaries.

Understanding probate is crucial in real estate, particularly when dealing with properties that were owned by someone who has passed away. It impacts how and when properties can be sold or transferred and often involves court oversight to ensure all legal requirements are met in the distribution of the estate.

Other options present different concepts that don't accurately describe what probate is. For example, the rental process of residential properties does not relate to the legal handling of a deceased person's affairs. Similarly, while there are methods for selling inherited properties without litigation, this falls outside the definition of probate, which specifically involves the legal resolution of the deceased's estate. Lastly, a tax exemption for heirs pertains to taxation issues rather than the legal process of estate settlement. Therefore, the correct answer is clearly tied to the established meaning of probate in the context of estate law.