The answer to the common question, “Can a house be sold while it is in probate in Austin, TX?”, is “Yes.”
You can sell a house while it is in probate, but you must thoroughly comply to your state’s pertinent rules and regulations. Every facet of the sale will be monitored by the probate court. If you’re the executor, you must also supervise and approve every term of the sale. Understanding this complex process will help things go smoothly.
Can A House Be Sold While In Probate In Austin, TX?
Appointment of Administrator/Executor
A person is officially appointed as the executor (if they are willing) after being designated in the decedent’s will. If the will does not designate an executor, the court and/or the family will appoint a near relative to act as administrator.
After the executor or administrator is appointed, the property needs to be appraised. Make sure you choose a licensed, reputable appraiser who will do the job right, because the property must sell for at least 90% of the appraised value.
This step is where the answer to “Can a house be sold while it is in probate in Austin, TX?” starts to become a reality. Inform buyers that it’s a probate sale by having your agent list the house on a multiple listing service.
Offers from interested buyers must be accompanied by a 10% deposit. If you accept an offer, the offer must be submitted to the court (through your probate attorney) for confirmation. If everyone is in agreement, a date is set for the sale to be finalized in court.
Once the offer has been accepted and confirmed by the court, a Notice of Proposed Action must be mailed to every heir. This document states all the terms and conditions of the proposed sale. If none of the heirs raise an objection to the notice within 15 days, the sale can move forward without a court hearing.
Overbidding can become a little complicated. Before confirming and approving the offer of the original buyer, the judge will ask those present in the courtroom if they want to bid on the property. If no one is interested, the sale moves forward as mentioned above.
On the other hand, if there is an overbid, the original buyer’s 10% deposit must be refunded before the new sale can proceed. When the overbid is accepted, the new buyer must put up a 10% deposit, which is required to be a cashier’s check. This check is presented to the executor/administrator at the winning bidder’s acceptance hearing.
Upon court confirmation and approval, a contract can then be signed. It is a specialized kind of 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 complex rules for selling a house in probate. We advise you to consider contacting an attorney for more specific help.
We’re ready to help you reach your real estate goals and will be glad to answer any and all questions. Contact us by phone at (512) 345-9090 or fill out the online form.