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How to Sell a Texas House Within the Probate Period
After a homeowner dies, their descendants and relatives must attend to their affairs. As the family mourns, the decedent’s estate will be accounted for. After the inheritance is placed under consideration, it must be divided among the benefactors named in the testament. In many cases, these estate assets are subject to taxation and distributed via probate. To comply with the law, the estate’s administrator will have to deal with any financial obligations and disburse assets that are part of the inheritance.
If someone passes away before saying what should happen to their personal belongings, it can be challenging to distribute their property lawfully. Putting a Texas home up for sale during the probate period can be a long, expensive, and exhausting process. Our advice for getting through this time may help make it easier.Learn more about Our Process here.
TABLE OF CONTENTS
- What Is a Texas Probate Sale?
- What Is the Process for Selling Texas Real Estate in Probate?
- Getting Ready to Sell a Home in Probate
- Creating an Estate Account at the Bank
- Verify or Transfer the Title
- Get the House Professionally Appraised
- Submit the Appraisal for the Court’s Approval
- Pay Outstanding Bills
- Allocate the Inheritance
- Disburse Residual Possessions
- Repair and Upgrade the House
- Obtain the Probate Grant and Put the House up for Sale
- Prepare to Attend a Probate Sale Hearing
- A Judge Can Stop a Probate Sale
- When Can an Estate Administrator Sell a Texas House in Probate?
- Is It Necessary to Endure Probate to Sell a Texas Home You Inherited?
- Potential Issues With a Probate Sale in Texas
- Things to Think about When Selling a Texas House in Probate
- Agreeing to a Cash Sale Can Be the Simplest Way to Sell a Texas Home in Probate
- Frequently Asked Questions about Selling a Texas House in Probate
What Is a Texas Probate Sale?
After a Dallas citizen passes away, the courts carry out the probate procedure to recognize their loss of life. This allows their beneficiaries to receive their inheritance. When a Dallas resident dies, a probate judge needs to validate the decedent’s testament at a court hearing. If the testament gives the decedent’s home to multiple beneficiaries, the court has to appoint an administrator, personal representative, steward, or executor to proceed with the sale of the inheritance. State law mandates that a Texas probate court must disburse the proceeds of the sale to the inheritors after the sale goes through.
What Is the Process for Selling Texas Real Estate in Probate?
Before an inherited home can be sold, the seller must go through a specific legal process.
File Probate with the Local Court
The probate procedure starts when an authorized petitioner or beneficiary takes the decedent’s death certificate and will to the county clerk’s office in the area where the decedent lived. Next, a probate hearing has to be scheduled to be held at least 14 days after the filing was made. The court has to post a public notice about the probate application at the courthouse and online 14 days prior to the probate hearing. This gives people an opportunity to file a claim or contest the testament.
The Court Appoints an Executor
At the probate hearing, a judge has to approve the testament and empower its designated independent executor to represent and assume control of the estate. When several people inherit property, the probate judge usually appoints one steward to deal with the estate’s affairs. The court may also transfer the deed to the rightful beneficiaries and verify that the specific names of the descendants are properly noted.
If a testament does not exist, the court can appoint a lawyer to determine who inherits the decedent’s property. The judge can also name a petitioner or the decedent’s closest relative to act as the steward of the intestate estate within the probate period. If this person can’t carry out their responsibilities, a judge will appoint a new steward.
Sell the Probate Real Estate
Once the probate hearing ends, the decedent’s house can be listed and sold.
Getting Ready to Sell a Home in Probate
Often, preparing to sell a residence that is subject to probate is an expensive, involved endeavor. There are many tasks to carry out, which include:
- Creating an Estate Account at the Bank
Once a judge grants probate, the estate’s representative must open a bank account on the estate’s behalf. This account stores proceeds from the property sale and the decedent’s remaining assets temporarily. The law makes it allowable for the administrator to use money held within the account to settle any outstanding financial obligations or expenses tied to the estate.
- Verify or Transfer the Title
When probate court proceedings are underway, it’s often standard practice to verify the title. Otherwise, the estate’s administrator must hire an attorney to transfer it to the inheritors. Since the house has to be taxed, the steward must ensure that the names on the title and the tax rolls match.
- Get the House Professionally Appraised
Once the first probate hearing is complete, the estate’s administrator must hire a professional to independently appraise the house and valuable property like vehicles, antiques, jewelry, and other belongings in the estate and estimate their value. This appraisal, plus documentation that includes a list of claims and an inventory, must be submitted to the county clerk’s office within 90 days. When estate assets are valued at over $1 million or the distribution of assets is complex, the administrator should consult with a lawyer to mitigate any legal risk.
- Submit the Appraisal for the Court’s Approval
When the administrator receives the appraisal of the family home, they must submit it to the court for approval.
- Pay Outstanding Bills
The estate’s administrator has to settle any financial obligations, no matter how costly. These may include mortgage payments, liens, home equity payments, homeowner’s insurance, homeowners’ association fees, utilities, property taxes, inheritance tax, capital gains tax, income tax, and judgments. The estate must also settle other outstanding accounts, including the decedent’s medical expenses and funeral costs.
- Allocate the Inheritance
After the administrator settles the estate’s financial obligations, they have to distribute the decedent’s heirlooms, personal possessions, and the contents of the house as per the testament’s instructions.
- Disburse Residual Possessions
Once the decedent’s property has been distributed to the heirs, the administrator can arrange to sell any items that remain at an estate sale or auction. Unwanted property can be donated to a charitable organization or thrown away.
- Repair and Upgrade the House
The administrator or seller may use funds in the estate account to clean, improve, repair, and landscape the home so that it can command a better price when it is listed for sale.
- Obtain the Probate Grant and Put the House up for Sale
When the court grants probate, the seller can put the house on the market. For more Questions check out Our FAQ Page.
Prepare to Attend a Probate Sale Hearing
Once a seller accepts a buyer’s offer for a home they inherited, they must formally notify the inheritors about the sale. The inheritors have 15 days to dispute this Notice of Proposed Action.
If no one contests the notice, the house may be sold. In most cases, the court has to arrange a hearing 30 to 45 days after the administrator’s petitions to close the sale. During this period, a seller can attempt to secure a higher offer for the property.
A probate sale hearing is similar to a public auction. Anyone who comes to the hearing can try to win the sale with a bid that is at least 5% plus $500 higher than the previously accepted offer and backed with a deposit of 10%. After the judge approves the highest legitimate bid that satisfies a final sale price of 90% or more of the appraised value of the house, the court must take that bid. At the hearing, the buyer is required to sign the contract and give the seller a fraction of the sale price equal to 10%. The sale closes 30 to 45 days after escrow begins.
A Judge Can Stop a Probate Sale
When a Texas estate goes through probate, no one can claim ownership until it is released to the beneficiaries by a judge. While probate is underway, the estate’s administrator must settle all outstanding liabilities before the inheritors can take possession of any property. If debts cannot be paid outright, the court may order a sale of the residence to pay creditors before distributing the remaining proceeds.
When Can an Estate Administrator Sell a Texas House in Probate?
A seller in Texas can take an offer for a home they inherited before probate ends. If the decedent’s debts were considerable, a probate judge may have to agree to the sale. The sale’s proceeds will stay in an escrow account until all outstanding taxes and bills have been settled, then the steward can disburse the remainder
Is It Necessary to Endure Probate to Sell a Texas Home You Inherited?
In some cases, it may be possible to avoid probate when certain conditions are met.
Lady Bird Deeds and Life Estate
Prudent estate planning can allow heirs to sell an inherited residence without going through probate. If the benefactor used a “Lady Bird” deed or a retained life estate, named their heirs, paid all debts, and completed the necessary paperwork, the heirs can file an estate affidavit to transfer the title.
Revocable Living Trust
A third-party trustee often places estate assets in a trust to ensure they are preserved for the beneficiaries. By Placing residence in a revocable living trust while the trustor is still alive, the transfer process for the beneficiaries is simplified, and the beneficiaries who inherit the house can bypass the lengthy and complex probate process.
Affidavit of Heirship
A seller can sometimes sell their inherited residence and avoid probate by providing notarized affidavits of heirship that establish ownership and provide access to money in investments and bank accounts. These affidavits are easy to implement if all of the heirs agree to their terms and get signatures from two witnesses.
Muniment
A Muniment is a legal document that can expedite probate by using witness testimony and a valid will to establish property ownership. It doesn’t require estate management, a personal representative, an executor, or an administrator. All financial liabilities, except liens, must be paid and properly documented to obtain a Muniment.
Potential Issues With a Probate Sale in Texas
When you sell a Texas residence in probate, you may run into some challenges, such as:
Outstanding Financial Obligations
Financial obligations can hold up probate and delay the sale of a house that was passed down. Debts must be paid before the sale proceeds, and personal possessions can be distributed to inheritors.
Family Disputes
Family squabbles can complicate the probate process if a testament is disputed or unclear. If the testament is missing or contested and multiple creditors and beneficiaries make claims to an estate, a probate lawyer must be appointed to deal with the conflict, and a probate court must validate the testament.
The Decedent was Coerced to Rewrite their Testament
When an inheritor suspects that someone coerced their deceased benefactor into rewriting their testament, they can try to persuade a judge to invalidate it.
Things to Think about When Selling a Texas House in Probate
Descendants who want to sell inherited Texas property in probate have a few choices to consider.
Hire a Real Estate Agent in Texas to Sell the Family Home
Pros
A competent and experienced realtor can list, price, and market a house as they help the seller through the selling process. They can also recommend upgrades, prepare the property for open houses, and list it on the MLS to command a higher price as they negotiate offers. Offering the inherited home to a sizable group of potential buyers should bring in multiple bids.
Cons
Working with a real estate agent is often more time-consuming and costly than selling the house another way. The seller must pay a commission to the realtor, which usually covers selling fees and closing costs.
Sell the Texas Inherited Residence to a Member of the Family
Pros
If every inheritor agrees to sell the inherited residence to a particular member of the family, they may be able to make the probate process move faster. Selling the residence to a member of the family may be quicker and simpler than selling it to a buyer no one knows. Keeping the home in the family for sentimental reasons while rewarding other inheritors with cash can also benefit everyone involved.
Cons
If the family disagrees about how to disburse the decedent’s assets, selling the house to a member of the family during probate could worsen tensions among the inheritors. Settling matters could be unpleasant and expensive, especially if lawyers mediate the dispute.
Sell the Inherited Residence “FSBO” While It’s in Probate
Pros
A seller who decides to sell a residence FSBO while probate is underway can control the process. “For sale by owner” can be a good choice if a seller has a buyer ready or understands how to price and market the house and can negotiate its sale. FSBO sellers won’t need to pay a realtor’s commission, which usually costs about 6% of the house’s sale price.
Cons
FSBO can be a slow, difficult process that generates lower returns than a sale by other means. A seller must be able to deal with negotiations, disclosures, and escrow, and they may need to pay a 2% to 3% agent fee to the buyer.
Sell a Texas Home in Probate to a Cash Buyer
Pros
When a seller contacts a cash-for-houses company or a property investor who pays cash for houses, they can sell the family home quickly without closing costs. Cash buyers can make selling a family home in probate less costly and tiring. These kinds of investors can purchase the house “as-is” for a price that meets or exceeds its market value. This option allows sellers to forgo the hassle and expense of repairs, staging, and open houses. Contact Us now to Sell a House in probate.
Agreeing to a Cash Sale Can Be the Simplest Way to Sell a Texas Home in Probate
If you’re looking for a fast and easy way to sell a Texas house in probate, selling your inherited property for cash is a great option. Selling a house for cash “as-is” sets you free from the responsibility and expense of repairs and renovations. You won’t need to put the house on the market or pay commissions or fees to realtors when you sell a house for cash. The sale is guaranteed, so you know that the deal won’t fall through. A cash home-buying service in [market state] provided by We Buy Houses For Cash Dallas can make it simple to sell an inheritance in probate. Our experts buy houses and old or new property, like mobile homes, “as-is.” If you’re a seller who is facing foreclosure and you need a lender, we can help. If you’re ready to sell a residence that you inherited, we’ll help you expedite the sale.
Going through probate is often a long and expensive process, and putting an inherited residence up for sale during this period can be complex. A simple sale can make a real difference in the time it takes to distribute the estate when parents or loved ones die. Our specialists can take you through our qualification process and share information about how a cash sale works. We serve all Texas cities, including Houston, Fort Worth, El Paso, Austin, San Antonio, Galveston, and Dallas. When you sell your house to We Buy Houses For Cash Dallas, you can look forward to a great future after probate.
Frequently Asked Questions about Selling a Texas House in Probate
How Much Time Is Needed to Sell a Texas Home in Probate?
It can take several months to sell a residence during probate. Once a judge verifies a testament, the probate process may span six months. Sometimes, probate can last as long as two years. Competing heirs, unmet financial obligations, title issues, and other difficulties can delay the sale of the house.
Can You Live in a Texas Family Home While Probate Is Pending?
One or more people, who often include the decedent’s siblings or surviving spouse, can live in the inherited home during probate if they comply with the testament’s conditions. The occupant may need to pay the estate rent or prove residency.
If the testament says that the house must be sold, or the estate’s representative chooses to sell the decedent’s personal property to settle outstanding liabilities, or if the testament cannot be found and Texas law dictates that the inheritors must sell the property to pay bills and settle their accounts, then the court may decide that, during probate, the occupant cannot reside in the family home.
Is It OK to Empty a Family Home Texas before Probate?
Probate is designed to ensure that inherited assets are distributed lawfully. It also bars anyone from removing personal property from the decedent’s estate until the court appoints an administrator who can manage the transfer of money, heirlooms, and other valuables out of the home. After the probate court gives permission, the seller can remove items from the home and donate, sell, or dispose of any unwanted property.
Must All the Inheritors Agree to Sell the House in Probate?
Heirs who don’t want to live in their inherited home or be responsible for its mortgage or taxes may work together to sell it. However, if one beneficiary wants to own the house while the rest of them want to sell it, or if one heir wants to sell the residence and the majority of the inheritors want to own it, the situation may be more complex. A steward who works with a realtor may discover that the sale is only valid if all the heirs sign the seller’s contract. A real estate lawyer can advise the steward and help work out a solution that can satisfy all of the inheritors.
If you don’t find answers to your questions here, please contact us. We can provide tips and answer questions about tax, equity, cash payments, etc.
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These Findings Apply to All Cities in Texas including Dallas, Austin, Arlington, Denton, Bedford, Greenville, Lancaster, Princeton, San Antonio, Richardson, Murphy, Weatherford, and more!