According to William Sheetz, A preeminent Probate Attorney with extensive experience in DfW area probate courts,  "Real estate is usually the most valuable component of a deceased person’s estate, and few understand that during the Probate Process in Texas Courts,  the executor may sell the house of the Decedent or a person that has passed." Of course, Mr Sheetz explained,  there is a strict process in place that must be adhered to. The executor is granted the legal authority to manage the estate’s assets. The executor must be formally appointed by the Probate Court to have authority over estate assets. If the executor is not local to the property or other assets, the executor may name a Resident Agent to handle certain administrative matters and to sign in the executor’s stead with approval.

The probate process begins with petitioning the court to appoint a personal representative of the estate. If there is a will, the court will issue ‘Letters Testamentary’ to the personal representative. If the decedent died without a will (‘intestate’) then the court will issue ‘Letters of Administration’ to the personal representative. These documents show the personal representative’s authority to manage estate assets. The personal representative should immediately contact the insurer to inform it that the home is no longer owner-occupied to ensure the homeowner's insurance policy remains in force.

Once the personal representative is appointed by the court and notice of the probate is published, a four-month notice to creditor period begins to run.

The personal representative may sell the real property during this four-month period but certain mandatory steps are required:

1. Work with an experienced probate attorney and realtor knowledgeable with selling real property during a probate.

2. Have the real property appraised by a licensed real property appraiser to establish a "date of death" value. Your Realtor can assist in identifying an appraiser and getting this commissioned.

3. Consider a market analysis to determine an asking price for the real property. Your Realtor can conduct a home value report immediately to determine a fair market value or perhaps more importantly provide a broker price opinion to satisfy the court that the Sale price is fair.

4. Obtain court approval to sell the real property.

5. Make sure that all the beneficiaries are informed and in agreement with the sale of the home.

The personal representative is exempt from seller disclosures. However, if the personal representative is aware of any issues with the home these should be disclosed to prospective buyers. The personal representative should provide the title company with a copy of the Letters Testamentary or Letters of Administration and the tax identification number for the estate. The personal representative signs the sale documents, including the deed to the third party purchaser. Any encumbrances on the property, including property taxes and loans, will be satisfied at closing. Once the sale is finalized the net sale proceeds must be deposited into an estate account. The sale proceeds can be used to pay valid claims against the estate as they arise and the balance distributed to the beneficiaries after the four month notice period runs and the court approves a final accounting.

Mr Sheetz also explained that in ceratin circumstances, there is another salient benefit of selling a home during probate because only the personal representative needs to sign the sale documents and the net sale proceeds become available to help pay valid claims against the estate. If the home is not sold during probate then the personal representative distributes the home to the beneficiaries via a personal representative’s deed at the end of the probate with prior court approval. If the beneficiaries then wish to sell the home all the beneficiaries must sign the sale documents, which can complicate and/or delay the sale process. This is why we recommend selling during probate if there are many beneficiaries. Getting everyone to agree can definitely complicate matters.

An experienced Probate realtor can help you navigate the property valuation and probate sale process. As part of the Silver Realty Services program, Jane Clark has significant experience working with both in state and out of state executors to resolve the terms of a loved ones estate. You are in good hands with Jane Clark and her team. Contact her for any assistance you might need