The answer to the often-asked question “Can a house be sold while it is in probate in Dallas Texas?” is “Yes.”
Grieving the loss of a family member is one of the most emotionally taxing experiences that a person will face in their lifetime. Unfortunately, the death of a loved one can also bring forth financial constraints and confusion, specifically if the deceased person has outstanding debt, such as a mortgage.
Can A House Be Sold While In Probate In Dallas Texas?
Yes, but you must adhere carefully with rules determined by the state, known as the Texas Probate Code. The Texas probate court will monitor every aspect of the sale. Additionally, if you are the executor, you will be required to approve the terms of the sale. It can be a complex process, but understanding it will make things a little smoother.
What is Probate?
When a loved one passes away without a living trust, leaving behind property and debt, the probate process is required to pay the deceased person’s remaining debts and transfer the property into the names of the living beneficiaries.
Maintaining the Property During Probate
Unfortunately, property-related debts often begin to accumulate before probate is officially opened. During the process of probate, someone will need to maintain the property including:
- Paying property taxes, insurance, utilities
- Maintaining the lawn
- Cleaning out the contents of the home
- Making necessary repairs to preserve the home’s value
Step 1: Appointment of Administrator/Executor
If the decedent’s will designated a specific person as the executor(and that person is willing to act in that capacity), then he or she is officially appointed as the executor. If on the other hand, no one has been designated as executor in the will, then the court and/or other relatives will appoint a near relative to act as administrator. If an executor (or personal representative) of an estate is appointed, and the home is not expressly bequeathed to one or more beneficiaries, it may be necessary to sell the home.
Step 2: Appraisal
The next step is to have the property appraised by a licensed, reputable appraiser. The appraisal value is a crucial factor when selling a home in probate in Texas. In order for the sale to finalize, the property must sell at a price that is at least 90% of the appraised value.
Step 3: Sale
This is the step where the answer to “Can a house be sold while it is in probate in Dallas Texas?” begins to become a reality. You will start by having your agent list the house on a multiple listing service (MLS) so that buyers will know it’s a probate sale.
An interested buyer makes an offer along with a 10% deposit, an offer which you can accept or reject. If you do accept it, the offer is then subject to court confirmation. You must submit the offer through your probate attorney to the court for confirmation. If everyone is in agreement, then a date is set for the sale to be finalized in court.
When the offer on the house in probate has been accepted and confirmed by the court, a Notice of Proposed Action must be mailed to all the heirs. This document states all the terms and conditions of the proposed sale. Heirs then have 15 days to review the notice and raise objections if they have any. If none of the heirs has any objections, the sale can go forward without a court hearing.
Now, here’s where it gets a little complicated. Before the court confirms and approves the original buyer’s offer, the judge will ask those present in the courtroom if any of them would like to bid on the property. If no one does, then the sale proceeds in the standard fashion mentioned above.
If, however, there is an overbid, the original buyer’s 10% deposit must be refunded before the new sale at the new bid price can proceed. When the overbid is accepted, the new buyer must then put up a 10% deposit, which is required to be a cashier’s check. This check for the accepted overbid deposit is presented to the executor/administrator at the winning bidder’s acceptance hearing.
Upon court confirmation and approval, a contract can then be signed. But it is a specialized kind of sale contract because it cannot have any contingencies, and escrow closes soon after the hearing, usually within 15 days.
As you can see, there are some complicated rules for selling a house while in probate. It is advised to consider contacting an attorney for more specific help.