**Updated 10/25/24
Selling a home in probate in Texas is not an easy process to deal with. However, for family members or loved ones stuck in the probate process, there is a light at end of the tunnel. This guide serves as a valuable resource for individuals navigating probate proceedings in Texas. It delves into the intricacies of the legal process, offering insights on how to successfully sell a probate property and maximize returns.
The first thing to understand is for what is a challenge for families stuck and grinding through the Texas probate process is considered an an opportunity for local real estate investors who are willing to be patient and come along with probate timeline. But what does it entail for a property owner to sell a house in probate in Texas? Let’s dive in here and figure this out for you and your family.
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What is Probate in Texas?
Probate is a legal process that occurs under Texas law when a person passes away, whether they died with a valid will assigning their assets to beneficiaries or they passed away intestate (without a will). You can read more about it in the Texas Estates Code.
Their decedent’s assets, including real estate and personal property, instantly become part of the estate and are managed by the executor of the estate, personal representative, or the probate court.
There are two types of probate: formal and informal. With an informal probate procedure, there is limited court involvement due to the estate having an original will or no dispute regarding the identity of the heirs.
This article addresses the trickier process of the formal probate process under Texas probate law, which can occur when the estate owes a large amount of outstanding debts, the will is contested, or the deceased left a will but the original cannot be located. In these cases, a court hearing must occur, and the probate court becomes actively involved.
If A House Is In Probate Can It Be Sold?
Yes, a Texas house in probate can be sold! Depending on how the estate was left when the person passes, a Texas property in probate can be sold by:
- The executor of the estate (also known as the personal representative), who is named in the valid will to manage the distribution of the estate.
- The administrator of the estate, who is appointed by the court in an intestate estate when there are heirs or beneficiaries.
- The probate court when there is an intestate situation but no heirs seeking administration.
The executor, administrator, or a court order can initiate the sale of a Texas property in probate. For more detailed information on how this process works, see the Texas Probate Guide provided by the State Bar of Texas.
Can You Sell A House During Probate in Texas?
Yes, you can sell a home during probate in Texas. An executor’s main responsibility is to preserve the estate’s assets for distribution to any beneficiaries, as outlined in the decedent’s wishes in the valid will. Sometimes, situations arise where the decedent’s lack of estate planning leaves a large amount of outstanding debts to creditors, or the property has been neglected, accruing property taxes or back taxes.
In this scenario, the executor, administrator, or probate court is allowed to sell the real property to settle all debts, even if there are heirs. For a surviving spouse, Texas being a community property state can impact how assets are distributed during probate.
In our experience at Bright Bid Homes with over 2700 real estate transactions, we have handled our fair share of stuck probate properties.
Here is an example of a family we helped sell a probate house and navigate the arduous process. In this situation, an elderly woman in Dallas TX that passed away, leaving behind an estate for an executor to oversee. With two heirs in Texas, she departs with outstanding debts totaling $90,000 from hospital and credit card expenses. Although the woman leaves a house valued at $280,000, there are no liquid assets to offset the $80,000 hospital and $10,000 credit card debts.
Consequently, even after her passing, the estate must find a solution to settle these financial obligations. Should the heirs lack the resources to settle the debts, the executor may need to sell the property to clear the $90,000 debt. Proceeds from the property sale would then be used to pay off the debts, with the remaining $190,000 to be divided between the two heirs.
Contact Bright Bid Homes at (214) 833-6269 for professional assistance in estate management and if you need a quick probate house sale like in the case study above.
Who Buys Houses in Probate?
We do! Bright Bid Homes is a direct house buying company that has built our reputation on buying houses for cash with less stress and less fees. Contact us today and get a competitive cash offer for that inherited house or property that’s stuck in probate. We buy homes in any condition. We can help you with the convoluted process of selling a house in probate, making the process faster and as stress-free as possible.
Get My Fast & Fair Cash Offer Today!
START HERE: Receive Your Cash Offer Today! Get We purchase houses in Texas in any condition - no repairs needed.Step-By-Step On How To Sell A House in Probate
If you own a inherited property in Texas that is stuck in probate and you’re struggling to find a way to sell, there is hope! Depending on local and state law, the selling process of a probate property can be completed in several steps:
Step #1) Assign an Executor or Administrator
The first step is having an executor or administrator assigned, if there wasn’t one already designated by the deceased person’s estate. This person will obtain the necessary Letters Testamentary or Letters of Administration from the county clerk.
Step #2) Valuation or Appraisal
First up is finding out how much the property is worth. To do this, you’ll need an appraisal of the real estate property by a trusted professional appraiser who understands Texas probate law as it pertains to evaluating the property’s current value. In many states, including Texas, the court may require the property to be sold for at least 90% of its appraised value. That makes it even more important to find an appraiser with probate property experience.
Step #3) Necessary Documents
To proceed with selling a probate property, certain legal documents may be required, such as:
- Letters Testamentary
- Letters of Administration
- Affidavit of Heirship
- Small Estate Affidavit
- Muniment of Title
- Death Deed
These documents establish the authority of the executor or personal representative to act on behalf of the decedent’s estate. For more details on obtaining these documents, refer to the Texas Courts Probate Self-Help Guide.
Step #4) Notifying Interested Parties
Before proceeding with the sale, it’s important to notify all interested parties, including heirs and creditors, for validation purposes. This ensures that everyone who has a legal interest in the estate is informed about the proposed sale.
Step #5) Listing the House
Once you have your appraisal and necessary documents, you, the executor, and/or your probate attorney will need to file a petition to sell the house and other estate assets with the court. This legal document will include the final appraisal amount and the method you would like to use to sell the property. Methods can include auction, a traditional real estate sale, selling directly to a cash buyer, and more.
When the petition is approved, you are ready to list the property to let potential buyers know that the property is available. Whether you choose to sell the house yourself, use an experienced real estate agent or realtor, or sell directly to an investor, make sure that you have someone in your corner who has experience with probate properties.
Step #6) Receiving and Evaluating Offers
Whether offers come in quickly or slowly, eventually you’ll need to decide which offer is right for you. Evaluating your goals for the sale of the property is important. Do you need a quick sale to pay off the estate’s outstanding debts and probate costs? Would you prefer to wait longer to potentially receive a higher sale price?
Set a competitive asking price based on the appraised value and current market conditions. Consider hiring a home inspector to identify any issues that might affect the sale price.
Step #7) Notice of Proposed Action and Court Hearing
Once a buyer makes an offer, they need to be informed that the sale can only be completed after court approval. Due to disclosure laws, this should not come as a surprise, but a buyer inexperienced in probate may hesitate at the added time needed for the court proceeding.
A court hearing may be scheduled to approve the sale, during which the judge reviews the terms to ensure it is in the best interest of the estate and the beneficiaries.
Step #8) Finalization of Property Sale
Once you have an offer that the court accepts, it’s time to finalize the sale. The executor or probate attorney will need to file a final account and petition for the final distribution. Once the court approves this, the title company can proceed, and title documents can be signed to make the house sale official, completing the real estate transaction.
Common Mistakes When Selling a Probate Property
Moving Too Quickly
When a loved one passes away, their family members may try to move as quickly as possible to sell the property. Or, if there are outstanding debts with interest compounding monthly, the executor may try to sell the house fast by valuing it below fair market value. This might not be a good idea if it results in less value for the heirs.
Not Completing a Real Estate Disclosure
Real estate disclosure laws require property owners to disclose known material defects to potential buyers before closing on the property. If you inherited a house that you never lived in, consult with professionals to navigate these legal waters.
Failing to Hire a Lawyer
We cannot emphasize this enough—a knowledgeable probate attorney with experience in Texas probate law can help you navigate the process much faster. They will guide you through the legal requirements to sell that unwanted property or house with less stress and headaches.
Don’t Wait To Start the Probate Process
Waiting too long can cause the estate’s expenses to add up fast, eating into the estate’s remaining assets and leaving you in a difficult situation. Property taxes, utility bills, and mortgage payments continue to accrue during probate. Don’t overlook the importance of managing insurance policies and bank accounts that are part of the estate. These assets may need to be addressed to prevent lapses in coverage or other financial issues.
How To Sell My House in Probate?
Sell to us! We are cash home buyers at Bright Bid Homes and built our trust and reputation on buying houses for cash with less stress and less fees. Contact us today and get a competitive cash offer for that house or property that’s stuck in probate. We buy homes in any condition. We can help you with the confusing and difficult process of selling a house in probate, making the process faster and as stress-free as possible.
Get My Fast & Fair Cash Offer Today!
START HERE: Receive Your Cash Offer Today! Get We purchase houses in Texas in any condition - no repairs needed.Special Considerations When Selling Probate Properties
Joint Tenancy and Community Property
In Texas, properties held in joint tenancy with right of survivorship may pass directly to the surviving owner without going through probate. Understanding how joint tenancy and community property laws affect the estate is crucial.
Intestate Succession
If the deceased did not leave a valid will, intestate succession laws determine how the remaining assets are distributed among heirs. This can complicate the sale if multiple family members have claims to the property.
Mobile Homes and Other Real Estate
Selling specialized properties like mobile homes may have additional requirements. Ensure you’re aware of any specific laws governing the sale of such real estate property in Texas.
Handling the Family Home
The family home often holds sentimental value and emotional attachments. Deciding to sell it can be challenging, but sometimes it’s necessary for settling the estate. Working with professionals who understand your situation can make the process smoother.
**About the Author: Hilary Schultz is a licensed Texas Realtor and real estate professional — is a leading authority on DFW metroplex real estate. Hilary is a member of the executive board of her local Texas PTA and active member of the Texas community. Along with her husband Patrick, they have combined 40 years of experience with over 2700 real estate transactions completed. Read our online reviews to see our passion to help the Texas community and provide homeowners with valuable insights, guidance, and a personalized experience through the home selling process. Let us serve you and help to navigate probate on your real estate journey.