sell an inherited property in Texas

Selling a House In Probate Texas Guide

The loss of a loved one is emotionally challenging as you deal with internal turmoil and grief. If your loved one has left behind property, you may also be overwhelmed by the stress of navigating through the financial and legal aspects of settling an estate. The probate process is often long and complicated. In fact, it may take up to a year or longer to complete probate. The executor will represent the estate and must deal with the deceased’s holdings, liabilities, and taxation during probate. Selling an inherited house is often preferred or essential, but it can be complicated for the seller. Our comprehensive guide can provide advice as you walk through a smooth process as a seller.


Probate Sale Meaning Texas

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A probate sale happens when someone dies without having a formal legal document or bequeathing their assets to a specific person. While some estate personal reps decide to wait until after probate to list a property for sale, others need to complete a probate sale. This is most commonly because the assets must be liquidated in order to pay off the deceased’s taxes and liabilities. It may also be because the assets of the estate need to be distributed equitably across multiple descendants, and this cannot be done without liquidating estate assets.

Probate Process For Selling Real Estate in Texas

1. File probate with the local court.

In the case of an intestate estate, there is not a legal document that designates beneficiaries for the real estate. If a legal document has been created, the court completes administration to validate the document. This means that it decides who is responsible for settling the decedent’s estate and selling real estate. This personal rep receives a certificate of appointment and can then act as the seller of the real estate during probate.

2. The court appoints an executor.

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If a person dies without a legal document attesting to the division of the estate, descendants can petition the probate court with an interest in being the authorized representative of the estate. The probate court then appoints the personal rep for the estate. This appointed person is responsible for handling all aspects of the probate procedure, including acting as a seller for the deceased person’s real estate.

3. Sell the probate real estate.

The assigned personal representative then collects the deceased person’s brokerage and bank accounts, and he or she organizes state and federal taxes. The probate court can require an appraisal to assess the asset’s value and calculate the estate tax and capital gains tax due from the estate. This is done prior to the seller listing the house for sale. To settle the estate, the house may need to be sold during probate. The estate is settled when the beneficiaries or heirs receive their rightful share.

When Can The Executor Sell The Probate Property in Texas?

After an estate rep is assigned, an evaluation is completed on the house to determine the house’s value. The seller, or estate personal rep, can then market the property to potential buyers. Upon the sale of the house, the mortgage debts and other creditors must be paid first. The remaining proceeds are applied to other debts and estate taxes before funds are allocated to heirs of the as their inheritance. The beneficiaries are responsible for paying inheritance tax after probate.

Can You Sell A House Before Probate is Complete in Texas?

Yes, you can sell a probate property in Texas before probate is finalized. Proceeds from the sale go into a probate escrow account and are disbursed as inheritance once the probate is complete, and all outstanding debts have been paid. As the personal representative for the estate, you are the seller. If you determine that selling the inherited house is necessary, you can learn more about the process and walk through the sales process easily with our guide.

Do you need to go through probate to sell an inherited house in Texas?

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In most cases, the probate process needs to be in progress before you can sell the property of someone who has passed. However, there are exceptions. For example, if your loved one placed the home in a living trust before he or she passed away, you may be able to act as the seller right away. In addition, the personal rep could sell a home before probate if it meets the qualification of a small estate. A small estate affidavit allows for the transfer of the home’s title so that heirs can avoid probate.

Texas Probate House Sale Issues

As a seller of a house in probate, the estate’s personal rep must first petition the court for approval. The property must then be marketed by the seller or agent so that a buyer can be found. The buyer must be made aware that the house is in probate and cannot be sold until the court confirms the sale. Then, the offer is presented to the court in a formal hearing. If other buyers are interested, the court can require a bidding process and rule on the winning bid. All beneficiaries of the estate have the right to object to the sale. This is a complicated process that may deter some buyers from making an offer on a house in probate. In addition, buyers often expect to get a steal on a probate house, which means that the estate may not get a fair offer.

Options You Can Consider When Selling a Probate House in Texas

When you need to sell a property that hasn’t been willed to a specific person or people, you have a few options when acting as the seller of the estate assets. All of these options have benefits and drawbacks for you to consider.

Listing The Probate Property With A Texas Real Estate Agent

selling inherited property in Texas

When a seller lists a property in probate for sale with a Realtor, the process is generally lengthy. If lender, taxes, and insurance payments are needed or if the house is in foreclosure, a timeline that takes months or longer to complete is not generally preferred. Listing a probate property with a Realtor also results in high fees and a commission that the seller is responsible for paying through the estate. These are costly expenses that impact the net inheritance, and they can be avoided if you sell without a real estate agent.

Probate houses often sell for a lower price than other active listings. This is often because of the need for a quick sale or the condition of the property. However, the seller or personal rep of the estate may receive multiple bids through an auction.

Selling The Inherited Property To A Family Member in Texas

The probate court may rule that selling the inherited property to a family member is allowable before the estate is settled. Often, a family member must apply for a mortgage through a lender, which could add several weeks or more to the seller process. A family member may not want to pay full market value for the house. However, the court must approve the sales contract even if the other heirs agree to the terms of the sales.

If a family member is interested in buying the property of someone who has passed, you can bypass the common seller hassle of listing with a real estate agent. You can avoid agent commissions and other costly fees. The transaction may also be closed and the title transferred more quickly than if the property is listed with a Realtor.

Selling A Texas Probate House As-Is to a Cash Home Buyer

While you could complete the sales process as a personal rep of the estate over the course of many months through a real estate agent, a seller can benefit from the difference of selling to a cash home buyer. An all-cash buyer can make an offer on the house as-is, even with the belongings in the home. You won’t need to make repairs or deal with costly improvements to make the house presentable before proceeding with the sale. Such expenses deflate the value of the estate during probate. As a cash buyer, we buy homes in any condition. You can trust us to walk you through a fast, hassle-free process. In addition, you can avoid paying an agent commission and other fees, allowing the estate beneficiaries to keep more of the money from the sale. When you transfer the deed through an all-cash sale, you can walk through a hassle-free experience.

Probate House Sale Frequently Asked Questions

Can you sell a house without going through probate in Texas?

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It is possible to sell a house without going through probate with proper estate planning. By working with an attorney to prepare all required documentation, such as a will or trust documents, the property owner can make arrangements for the transfer of the property after he or she has passed. The trustee and those receiving an inheritance will be named upfront to avoid legal complications after the property owner’s death.

Can You Live In A House During Probate?

A beneficiary can live in a probate house. The court will require the beneficiary to comply with the estate’s rules. The occupant must move prior to the final probate ruling. The estate’s rep is not in charge of rent collection. However, rent may be charged in probate in order to pay the mortgage. As an alternative, the house can be rented to a third party, and the rental income may be used to pay the mortgage in probate.

Can you empty a house before probate in Texas?

The items in the home are a part of the estate, and they should be preserved until the estate’s personal rep is designated. The probate rep can then empty the house and use the proceeds to pay creditors, pay property taxes and insurance, or hold until the assets are disbursed after the court’s final ruling.

How Long Does It Take To Sell A House In Probate?

Selling the inheritance through a real estate agent often takes several months or longer. In addition to the typical selling delays, such as finding a buyer, negotiating contract terms and more, a probate house sale must be approved through the court. A bidding process managed by the court may also delay the probate process. However, a house doesn’t need to be listed through a Realtor. The seller can save time and avoid hassle by selling to a cash buyer.

Can you empty a house before probate?

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In accordance with the law, only the assigned rep can sell the deceased assets and distribute them after the final probate ruling. The executor is not assigned by the court until the probate proceedings have started. After the documents are filed with the clerk’s office and beneficiaries express their interest in being the court-assigned personal rep, the court then makes an assignment. After that point, only the assigned rep can determine what to do with the personal assets of the person who passed away, including the contents of the home in probate.

Do All Heirs Need To Agree To Sell Inherited Property?

While the assigned personal representative is responsible for acting as the seller of the property in the formal probate process, the heirs can potentially halt the sale in probate. An heir can present a specific grievance about a purchase offer in probate to the court before the contract is executed. The court then considers the claims and makes a final ruling. If the sale is not approved by the court, the seller must search for another interested buyer of the probate home.

Easiest Way To Sell A House In Probate

Whether you are a surviving spouse or the parents or siblings of the person who died, ample consideration should be focused on how to sell a probate house fast. At Sell My House Fast Now, we buy houses and mobile homes fast, and we can help you complete the probate procedure by making a cash offer on your probate property right away. For more information about selling in probate, contact us today.

These findings apply to all cities in Plano, including McKinney, Spring, Waco, Bedford, Forest Hill, Cedar Hill, and more. 

Selling a House That Is a Probate Property
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