Can An Executor Sell A House? A Guide to Estate Property Sales

When someone passes away, their estate assets—like real estate– need to be managed, distributed, or even sold as part of settling the estate. This job usually falls to the executor of the will or administrator. What happens if selling a house is part of the process? If you’ve ever wondered if an estate administrator can sell property, you’re not alone. Walk through the process step by step to learn what an executor of an estate can do and why they might sell assets like a house.

What Does an Executor or Administrator of an Estate Do?

Before jumping into what happens with a decedent property, let’s clarify the roles of an executor and administrator. An executor of an estate is a person named in the deceased’s will to carry out their final wishes. This includes managing the estate, paying off liabilities, and distributing assets to beneficiaries. 

On the other hand, an administrator steps in when a will is absent or the named executor cannot serve. A probate court appoints them, and they perform duties similar to those of an executor. However, their authority is derived from the laws of intestate succession (inheritance without a will), which vary by state.

It doesn’t matter if the person appointed was by the will or the court. Both have fiduciary duties to manage the estate responsibly and in the best interest of the beneficiaries. That may include selling the property. The rules and processes for an executor versus an administrator may differ based on the property’s location and the motivation to sell property.

Understanding the Executor’s Role in Selling a House

Can the executor of a will sell the house? The short answer is yes, but there’s more to it than just deciding to list the property.

Responsibilities of an Executor

The executor is responsible for managing the estate as outlined in the will. If the will explicitly instructs the sale of the house, the executor must follow through. However, even if the will doesn’t include specific instructions surrounding real estate, the executor can still sell the house if it’s necessary to pay the deceased’s debts or divide the estate among beneficiaries. 

The executor’s fiduciary duty requires them to act in the estate and beneficiaries’ best interest and ensure that all actions they take are legally compliant and fair. So, while they decide what to do with the deceased person’s real estate holdings, they must also keep up with the property’s mortgage payments and property taxes.

When Can an Executor Sell a House?

• Court Approval: Some estates require probate, a legal process of validating the will and overseeing the estate’s administration. With a probate process, the executor may need to obtain court approval before selling the property.
• Directed in Will: In cases where the decedent’s wishes were to sell property, the executor will follow the intention and list the property for sale. They will distribute net proceeds as directed by the will or among heirs following intestate laws.
• Consent of Beneficiaries: Not all states require beneficiary approval for the executor to sell the property. While executors have the authority, keeping beneficiaries informed and in agreement can smooth over potential disputes that might otherwise cause delays.

Are There Restrictions?

Selling a house is not always straightforward, and probate real estate sales add complications. The deceased person is no longer with us to sign over the deed, so the executors need to file for a new deed. Restrictions may arise if beneficiaries object to the sale, the property has unresolved title issues, or the court imposes conditions. 

Additionally, executors must act in the holistic estate’s best interest, meaning the property should be sold for a fair market value. The probate court typically grants executors the legal authority to sell the property, but this could take time.

About the Administrator of an Estate Role

An administrator, also known as a personal representative, serves a similar role as an executor but is appointed where no will exists. Sometimes, they are legally appointed if the executor can not fulfill their duties. They oversee the settlement of debts and distribution of the deceased’s assets according to local laws.

Who is an Administrator?

Administrators have legal authority from probate courts to manage and sell estate assets. This administrator can be someone who petitions the court for the role. The courts usually favor appointing close family members of the deceased as administrators. However, judges have the final say over who will oversee the estate account, so it may not go to a family member.

Can an Administrator Sell a House?

State laws govern an administrator’s authority. While they can sell property, additional oversight may be required to verify the real estate sale aligns with the proper management of the estate’s assets.

Legal Requirements for Administrators

• Court Approval: Unlike an executor working with a valid will, administrators almost always need approval for inherited property sales. This legal procedure verifies the sale process adheres to estate laws and protects the interests of heirs and the deceased person.
• Transparency with Heirs: Without a will to guide the process, administrators may be required to consult with heirs, especially if disputes arise regarding property sales. However, they don’t always need all beneficiaries to approve the home sale for it to move forward.

What Affects the Sale of Estate Property

Will the executor have to sell the home? That depends on multiple factors that go into estate settlement. Consulting with an estate attorney helps answer these complex probate process questions while keeping the affairs compliant with state requirements. But, generally speaking, it involves:

1. Presence of a Will

A will simplifies what to do with all remaining assets by clearly stating the deceased’s wishes. Without one, the process requires probate court involvement. Larger estates with a will may sometimes be required to file with the probate court.

Turn to an estate planning attorney for valuable guidance in drafting a will that meets legal standards in your jurisdiction. Learn what steps will be involved in the probate process after death, including how the transfer of real estate will happen.

2. Debts and Liabilities

Most estates have some outstanding debts or taxes owed after death. The house could have a mortgage or some other lien to be settled before it could be inherited free and clear by named heirs. In the best scenarios, the deceased’s bank accounts or other cash sources will have enough funds to pay these debts. But sometimes, the house may need to be sold to cover these costs. 

Courts usually prioritize settling creditors before distributing assets to heirs. Additionally, the estate may be subject to inheritance tax in some states. What is owed is another factor in settling the deceased’s debts and distributing assets. Properties may need to be sold to pay this tax.

3. Beneficiaries’ Rights

Beneficiaries are legally allowed to contest the sale of a property, mainly if they believe it’s being undersold or isn’t necessary for settling the estate. However, contesting the sale leads to delays and additional legal costs.

Executors must uphold their fiduciary duty to act in the interest of the beneficiaries. Their role is to maintain transparency and fairness in the sale process. Part of this is submitting a final accounting of all the deceased’s assets and debts as part of the probate process.

4. Probate Court Approval

Probate laws depend on the state, but many require executors and administrators to get probate approval before actions like selling real estate. Research your state’s probate requirements.

The Selling Process for Executors and Administrators

When selling inherited property, executors and administrators follow similar steps to sell the property legally and fairly.

Step 1: Valuing the Property at Fair Market Value

• Hire professionals to appraise the property and determine its fair market value.
• Use this valuation to guide the listing price.

Step 2: Legal Requirements

• Review the estate’s probate status to determine whether court approval is necessary. Follow the legal process for probate real estate sales.
• Ensure all necessary legal documents, including property deeds and inheritance-related paperwork, are in order.

Step 3: Consulting Beneficiaries

• Hold discussions with beneficiaries to address concerns and gain consensus when possible. Open communication reduces objections later. All beneficiaries approving the sale may not be needed.
• Use the appraisal report to show beneficiaries the home is being marketed at or near the appraised value.

Step 4: Listing and Selling

• Work with a real estate agent experienced in probate sales to navigate the unique challenges.
• Market the property and manage negotiations with potential buyers.
• Work with the purchase offer to lift contingencies and see the home sale to closing.

Step 5: Handling Proceeds

Once the house is sold, the proceeds must be distributed according to the will or state inheritance laws. Executors and administrators are responsible for paying taxes first and then debts. The remainding sale proceeds are divided among the established beneficiaries according to intestate laws.

Common Challenges and How to Overcome Them

Even with careful planning, selling estate property can involve some challenges. Here are a few examples and tips on how to handle them effectively.

• Heir Disputes: Not everyone will agree to sell the house. To avoid conflict, keep open lines of communication and document every step of the process. Mediation may help if disputes escalate, but it could add legal fees.
• Probate Delays: Court processes can take time, particularly in states with more complex probate requirements. Hiring an estate lawyer can ensure everything moves as quickly as possible. Probate sale processes can be exceptionally lengthy and complex, requiring careful adherence to legal requirements.
• Title or Debt Issues: Unresolved property titles or outstanding estate debts can delay the sale. Partner with legal professionals and financial advisors to help solve these issues proactively.

Executors Selling Estate Property

If you’re an executor wondering, “Can I sell the house?” the short answer is you can. As an estate administrator wading through court requirements for property sales, the key is to stay organized and informed at every step. Homes are sold successfully every day as part of estate settlements, thanks to clear communication, legal knowledge, and professional support. That includes working with a probate attorney and a real estate agent experienced in estate sales.

Need more guidance on probate property sales? Get the clarity you need–reach out to our team today!