How to Sell a Probate House in Texas in 2025

Managing a loved one’s estate is challenging but necessary. In most cases, selling the house is one of the more complex processes, as the Executor must navigate different legal standards and procedures compared to traditional real estate sales.

Failing to follow the probate court’s instructions can lead to significant delays and disputes with various heirs. Every situation is different, and the process is affected by factors like the decedent’s debts and contests to the will.

We’ll help you navigate these difficult situations based on Texas probate law, covering who has the right to sell, how to satisfy the courts, and alternatives to selling the property.

What Is Probate in Texas?

Probate refers to the legal handling of a deceased person’s assets. It includes processes like distributing the estate or using assets to settle the decedent’s remaining debts, taxes, or legal obligations.

Testate vs. Intestate Estates

There are two types of probate estates: testate and intestate. The former means that the deceased person left behind a will. In Texas, this requires that the will is in writing and can be validated by two credible witnesses.

An intestate means that the decedent did not create a will. This scenario causes the probate courts to more strongly involve themselves in the settlement of the will, paying off debts and distributing assets based solely on Texas Law.

Probate Executor vs. Administrator

Decedents with a valid will typically name an executor to carry out their wishes. This person must be approved by the court and receive Letters Testamentary, giving them authority to manage the decedent’s estate. An executor named in the will may refuse, allowing someone else to apply for the role.

If no executor is named, or the courts refuse the will’s Executor, then the courts will appoint an administrator to settle the terms. There is a four-year time limit before the will becomes invalid. There are sometimes exceptions, but only if the Executor can provide a valid reason for the delay.

Independent vs. Dependent Administration

Furthermore, estate administration is classified as independent or dependent. Independent administration allows the Executor to perform tasks without constantly asking the court for permission.

Texas only allows independent administration when the will names an executor and the heirs agree to the arrangement. These factors minimize the risk that the will is violated or contested. It also allows the heirs to preserve the estate rather than dip into it for expensive court and legal fees.

Dependent administration typically occurs with contentious wills. The beneficiaries and heirs require court intervention to prevent unfair distribution or help in complex legal processes. Dependent administration is also more costly and slower than independent. The courts must approve all transactions, such as property transfers or debt settlement payments.

Can You Sell a House During Probate in Texas?

Probate decides how to handle assets, so selling a house midway through the process sounds wrong. However, probate can drag on for years, causing the estate to lose value or degrade from disuse.

So, many families find it more convenient to sell a house during probate, depending on the circumstances. Probate sales often happen if none of the heirs want to take responsibility for maintenance or property taxes. Otherwise, these costs slowly drain from the estate value.

In other cases, the liquid cash from the sale may be the most convenient method for equitable distribution between heirs. This strategy could drastically reduce the time spent in probate for handling the remainder of the estate.

Additionally, the Executor must obtain permission from the court to sell the decedent’s house. This permission can come from independent administration or applying separately for permission. In intestate cases, a court administrator may decide to preemptively sell the property to pay the decedent’s debts or mortgage.

The Legal Steps to Selling a Probate Property

Selling a probate property requires adherence to strict legal steps to avoid disputes, delays, or additional estate fees.

Step 1: Initiate Probate with the Texas Probate Court

The first step is to start the probate process. Go to the probate court in the county where the decedent resided. The will must be supplied alongside the petition; otherwise, the court will treat it as intestate.

Step 2: Get Letters of Testamentary or Letters of Administration

The court reviews the will to approve the Executor and provide the Letters of Testamentary. If no executor is named in the will, you must petition for administration with the court, requiring you to notify potential heirs and beneficiaries of your application.

It is recommended that you work with the court to send out notices to ensure they are done correctly and avoid future disputes.

Step 3: Appraise the Property

The property must be appraised to determine its fair market value. Texas law requires that a probate property be sold for at least 90 percent of the appraised value. This mandate safeguards against arbitrarily reducing the estate’s value and subsequent taxes.

Hire a certified appraiser and send the appraisal report to the court for approval. The court often has professionals who are familiar with the probate process who can contact you on your behalf.

Step 4: Notify Heirs and Creditors

Next, the property goes on sale, much like a traditional home, until an offer arrives. Offers must be passed to all heirs using a “Notice of Proposed Action,” stating the sale’s terms. These heirs have a maximum of 15 days to refute the sale. A non-response is interpreted as approval.

Step 5: File Petition to Sell

You can inform the court of the terms, barring any objections from heirs. The court will accept the sale if the price is at least 90 percent of the appraised value and comes with a 10 percent deposit.

Step 6: Accept and Evaluate Offers

After accepting the petition to sell, the court schedules a date to finalize the sale. Probate processes with an independent administration can get by without a court date, but dependent administrations must appear.

The court must set a date within 45 days of petitioning the sale. During this time, the Executor may continue to search for better offers.

Step 7: Navigate the Overbidding Process

The most unique part of a probate property sale is the overbidding process. Anyone may attend the hearing and outbid the current offer. Texas requires that new bids are at least 5 percent higher than the previous amount.

The accepted bidder must provide a deposit before the deal is finalized. This deposit is equal to 10 percent of the new bid, not the original amount.

Step 8: Finalize the Sale and Distribute Proceeds

When overbidding concludes, the court accepts a cashier’s check for the deposit and closes the sale. The finalization process takes about a month and a half. The courts may take a more active role if there are significant estate debts, but they will take a back seat in most cases.

Once prior obligations, such as taxes, legal fees, and debts, are resolved, the proceeds are distributed to heirs according to the will.

Alternative Probate Paths in Texas

In most situations, following the legal probate guidelines is the best choice. It avoids costly extensions and dragging out an unpleasant process. However, there are alternative paths for handling a decedent’s estate.

Affidavit of Heirship

An Affidavit of Heirship is typically utilized in intestate cases in which the decedent did not draft a valid will, and heirs must legally transfer property without a formal estate plan.

This document serves as a legal basis for transferring property titles without going through the entire probate process. It must be notarized in front of three people who had known the decedent for ten years.

Executors who have not initiated the probate process after four years also use an Affidavit of Heirship to identify heirs.

Muniment of Title

Muniment of Title is an option unique to Texas. This option covers situations in which the decedent left a valid will, and there are no debts against the estate. These factors remove the court’s reasons for scrutinizing or changing a will’s outcome.

For a Muniment of Title, the beneficiaries have the court validate the will without an estate administration. The house title provides the legal authority to transfer the home title to the intended beneficiary without a probate process.

Small Estate Affidavit

A Small Estate Affidavit is another route used when the estate’s value is less than $75,000, and the decedent did not leave behind a will. This form allows the property title to automatically transfer to a surviving spouse or minor children living with the decedent at their time of death.

This option is an accelerated probate procedure and requires that all other heirs sign their agreement. A Small Estate Affidavit does not require a probate process nor the appointment of an executive or court administrator of the will.

Common Challenges (and How to Handle Them)

Probate property sales quickly face many problems depending on the circumstances surrounding the will. These may occur due to unknown debts, heir disputes, or the absence of a will.

Title Issues and Delays

Titles are how homeowners prove their claims and must be confirmed before selling a house in probate. Some titles include deed restrictions, which limit how the property can be used, including restricting who can purchase it in the future.

Other problems can occur, such as missing signatures, unknown liens against the home, or improperly completed forms. It is best to involve a title company as early as possible. These services perform title searches that find all the information and potential pitfalls associated with a property title.

Unclear Ownership or Missing Wills

If there is no will, the court must take time to determine the rightful heir under Texas intestacy laws. This can take a long time, especially if there is a complicated family situation and multiple people make their case.

Seeking guidance from a legal professional and systematically removing other heirs from contention can speed up the process. Have everyone interested fill out an Affidavit of Heirship, which will state their relationship with the decedent.

Disputes Among Heirs

Multiple heirs may have different ideas about how an estate is distributed. Houses are often the most expensive asset in an estate, meaning whoever gets it may receive a disproportionate fraction of the value.

It is common for people’s emotional histories and personal relationships to pop up in the probate process. While disputes may be inevitable, we recommend keeping the following alternatives in mind before resorting to the courts:

• Mediation: Hiring a professional mediator to ease communication and find a solution without expensive legal fees.
• Constant Contact: The Executor should update other heirs on all decisions on the estate to prevent anybody from feeling blindsided or betrayed.

The Emotional Toll of Selling a Family Home

Property beneficiaries are typically closely related to the decedent. Surviving spouses and children can find it difficult to sell off their home even if it is necessary to settle the estate.

While it is essential to allow everyone time to grieve, the emotional weight should not prevent the Executor from continuing with the probate process. The Executor must understand their role and whether they are emotionally ready to tackle it.

Contacting an attorney or probate realtor early can provide external reminders to push you into the next steps of the sales process.

Heirs Living in the Home or Refusing to Sell

Heirs currently living in the house can delay or block the sale. They could extend court proceedings or refuse to leave for showings. Probate-savvy heirs may even file a Muniment of Title, causing the deed to transfer directly to their name.

The first step is to have a candid discussion. You are likely already familiar with this other heir, and a professionally mediated discussion could lead to a compromise. Figure out whether the issue is financial or emotional.

If the house sale is necessary for settling the estate’s debts, it may be possible to have that heir become responsible for those debts in exchange for the property. As a last resort, the Executor can file to evict the other heir, as the courts typically support the Executor in their actions.  

Costs to Expect During a Probate Home Sale

Selling a home in probate incurs several new costs you should budget for. Tasks like court filing fees, attorney expenses, and Executor compensation can quickly eat into the estate’s value. It is vital that you regard these costs if you require the estate to handle the decedent’s obligations.

Additionally, the home sale process also contains built-in costs. Small jobs like professional appraisals and inspections are often negligible compared to upkeep costs on things like property taxes, landscaping, and other chores to keep the home in shape.

Lastly, remember that real estate commissions can quickly cut down a hefty home sale. 

Selling to a Cash Buyer: Is It Worth It?

Most cash buyers are real estate investors or companies seeking to leverage the property. They pay in full without mortgages or traditional financing. Selling to cash buyers is an appealing way to liquidate the asset and get moving on the probate process.

Pros of Selling to a Cash Buyer

Cash sales are fast. They can reduce a lengthy probate process to a matter of weeks while avoiding expensive court and legal fees. Anyone who needs to settle debts or split assets quickly should consider selling to a cash buyer.

Additionally, those seeking to pay in cash will often buy the house in “as-is” condition. This means that you don’t need to spend more money on various repairs since the buyer is looking for a fixer-upper to begin with.

Cons of Selling to a Cash Buyer

The downside of buyers who want to flip for profit is that they will offer a lower sale price than what you’d get going through the probate process. Some predators also seek out heirs who are desperate to settle an estate and give a lowball offer for the house.

So, if there is no urgent motivation to sell the house quickly, it is often best to endure the probate process and get the best price. This is particularly true if the home is in decent condition and people are willing to help with the upkeep.

Tips for a Smooth Probate Home Sale

Selling a home during probate is challenging. There are many more considerations than normal sales, and most people aren’t familiar with the common pitfalls. Choosing the right support system will significantly ease your experience in this process.

Work with a Probate Attorney

You can’t help what you don’t know. The average person isn’t a probate law expert, and there may be rules that aren’t immediately obvious. Hiring a probate attorney to handle court filings, heir notices, and other legal processes will prevent unexpected delays or taxes on the sale.

Choose a Real Estate Agent with Probate Experience

Not all real estate agents have sold a probate home. The first person you contact may try to treat the sale just like any other, eventually getting you into trouble down the line. Ask potential real estate agents if they’ve handled probate listings before and how they would deal with your property.

Keep Communication Open with All Heirs and Beneficiaries

Keeping all heirs in the loop can eliminate a lot of tension from the proceedings. Beneficiaries should have a chance to disagree with the Executor’s choices, giving everyone the chance to resolve a conflict before legal action is necessary.

Consider creating a family chat, shared folders, and email groups for documents so everyone has access to the same information.

Don’t Rush — But Don’t Delay Unnecessarily

In Texas, probate averages between six months and two years to wrap up. You have time to work through your feelings regarding the decedent, whether they be grief, anxiety, or any other emotion.

Any of these factors may cause you to make poor decisions regarding the estate, such as selling off a treasured family home. There is time to consider your decisions to avoid mistakes.

However, there’s a difference between taking time to grieve and putting off your responsibility. It is challenging to put a timeline on emotion, but Texas has a four-year limit on handling probate matters.

Frequently Asked Questions

Can I live in the house during probate?

Living in a probate home requires permission from either the Executor or court administrator, whichever is responsible for the estate during probate.

Can we rent out the house during probate?

Unless specifically forbidden by the will, a probate house can be leased out with permission from the estate executor or administrator. This is more difficult under a dependent administration.

How long does a probate home sale take in Texas?

You can typically expect anywhere from six months to a year to sell a probate home. The minimum comes from the wait times between court dates for various steps. A dependent administration will be significantly slower as court approval is required for many processes.

What happens if someone contests the will?

The court will delay the probate home sale until the dispute can be resolved. This process will likely incur legal fees that will drain from the estate.

Disclaimer:
The content provided on this blog is for informational purposes only. We are not attorneys or tax professionals. For personalized legal or tax advice, please consult with a qualified professional.