Hess-Verdon & Associates
Can An Executor Sell A House?

Probate Litigation Attorney

Can an executor sell a house?

Managing an inheritance is a sophisticated undertaking, and executors, grantees, and other relevant individuals should educate themselves on the process. All it takes to avoid blunders is to understand the estate dealings. It’s important to remember that even small mistakes can be costly, especially when dealing with large estates or complex deals.

There are many misconceptions about the estate process and its dealings, but one major point of confusion is whether an executor can sell a house. The answer is yes, an executor may sell a house, but only with

permission from the probate court. That means there are legal processes that you, as an executor, have to follow.

Request a Case Review Today

Call us at 888-318-4430

Probate Attorney

Can an executor sell a house?

Are you an executor contemplating a house sale? Here is what you need to do

Seek approval from the court

Before selling any real estate, you should first get clearance from the court. You will also need to notify the beneficiaries of the transaction and obtain their consent before signing any sales forms.

Get a real estate agent for appraisals

Once the court approves your request to sell the property, you should hire a real estate agent to help you with the sale. It is crucial to ensure that the agent you choose is experienced in probate listings, as the process is slightly different from a traditional sale.

Draft a plan to distribute the house sale-generated income

If the property is sold, the executor should distribute the funds to the beneficiaries named in the will. This action follows a three-step process. First, the executor has to prepare a deed for the sale of the house; they then have to determine how the proceeds will be distributed. Lastly, the executor needs to seek the court’s and beneficiaries’ approval.

Reasons why the court may authorize the executor to sell a house

Just because you have presented your request to sell a house to the court doesn’t mean you will get approval. The probate court will only approve your request if the reasons behind your petition are logical and in the best interest of the property’s beneficiaries. Some of the reasons

include:

The need for asset liquidation

Due to property taxes, turning all liquid assets, like houses, into cash may be necessary. If the probate gives the green light, the executor may sell off stocks, bonds, and the house.

The asset transactions’ earnings are subsequently put into a designated estate savings account. This account can pay off any pending debts, legal expenses, or other costs. The leftover sum is then transferred to

the beneficiaries.

If the trust does not disapprove of the sale

While the trust may not expressly prohibit the sale of a residence, the administrator has the power to sell the house without the beneficiary’s approval. Assuming the property is bequeathed to a beneficiary, this might seem perplexing. Yet, it’s logical enough in cases where the

indebtedness of the testator outweighs the asset value. The executor may therefore be permitted by the court to sell the house to settle the debts.

In the absence of a will, can the executor sell a house without the beneficiary’s approval?

The short answer is yes, but there are a few circumstances when that sale might not be allowed, for example, if there’s a good reason why

the house can’t be sold and the proceeds distributed.

It’s crucial to have a will, especially regarding real estate. Without one, the executor will have a lot of control over what happens to your house. Indeed, without a will, the executor can sell the house and divide the proceeds among the beneficiaries, regardless of your wishes. However,

an estate lawyer may stop the pending transactions if they can get a legitimate will.

Is an executor allowed to sell a property in probate?

The answer to this question is not always clear. It depends on the situation and the law in the property’s state. Generally, executors are legally allowed to sell any probate property. They are legally authorized to manage the house during the probate process and to conduct sales if outstanding debts need to be settled. By law, the executor should follow the proper channels when selling the house in probate. Additionally, the house should not be sold for 10 percent less than its appraised value.

With no will, can the executor sell a house to themselves?

Without a will, the executor may buy out the assets of the surviving descendants. For instance, if the house is distributed among four beneficiaries, the executor could buy out the three. Although the remaining beneficiaries may stay in the house, their portion of the residual funds will be cut proportionately. But, in several circumstances, the surviving heirs may agree to this buyout as it reduces the closing costs on the house. Rather than relinquishing the family house and suffering real estate-associated fees, marketing charges, and other costs, the remaining beneficiary can transfer their home ownership and move away.

Even though the remaining beneficiary and the executor may not see eye-to-eye on the buyout, they may reach an agreement. The beneficiary may agree to sell their house share later, when the market value has appreciated. Regardless of the buyer, the law still states that the home’s

sale price should align with its current market worth. The transaction will be blocked if an executor opts to sell the house at a price lower than the

current market value. Selling a home below the market range may violate

fiduciary responsibility, and courts may intervene.

Final thoughts — can an executor sell a house?

The absence of a will gives executors a lot of authority over the management of assets. Still, under the right circumstances, the law allows an executor to sell a house. This may be necessary if the assets need to be liquidated to avoid tax debts or if the beneficiaries push for the sale. The court will also allow an executor to sell a house on the condition that the testator’s debt outweighs the house’s market value. Again, executors can sell a house themselves, provided it’s for current market value.

Meet The Team

Can An Executor Sell A House?

“Absolutely top notch firm for handling all your estate planning matters.”

Dean Williams

Client Since 1995

Can An Executor Sell A House?

“Jillyn’s expertise and positive attitude, also wonderful staff. Jillyn’s the best!”

Mary Sipe

Can An Executor Sell A House?

“Jillyn’s knowledge. Always does a terrific job of explaining everything.”

Carol Netta

Request a Case Review Today

 Call us at 888-318-4430

RECENT POSTS

Duties of an Executor of an Estate. What You Should Know!

Request a Case Review Today Call us at 888-318-4430Duties of an Executor of an estate What They Can and Cannot Do An executor is a person who has the legal responsibility to carry out the instructions of a will. The duties of an executor can be complicated and...

Does an Executor Have to Show Accounting

Request a Case Review Today Call us at 888-318-4430Does an executor have to show accounting to beneficiaries? Once an individual passes away, their estate is appointed an executor to fulfill the deceased's wishes. Their primary duty is to distribute the assets among...

Beneficiary Living in Inherited House. What to Know!

Request a Case Review Today Call us at 888-318-4430Beneficiary Living in Inherited house.  Buyout? Petition to Partition? Evict? Purchase? Repair? You recently lost a parent or other loved one, and as a result, you've inherited a house. It's essential to take your...

What are the Advantages of a Trust? What You Should Know!

Request a Case Review Today Call us at 888-318-4430What are the Advantages of a Trust? What You Should Know! Trusts and a last will and testament are two components vital to an estate planning process. While most people understand the last testaments and wills, they...

Who are the Parties in an Estate. Trust and Estate Overview

Request a Case Review Today Call us at 888-318-4430Who are the parties in an estate Trust and Estate Overview Living trusts are critical in estate planning. Understanding the parties involved in estate planning helps you prepare and create an estate plan that works...

Hess-Verdon

JOIN HESS-VERDON CHARITABLE GIVING PROGRAM

We are excited to be able to offer 501(c)(3)’s the ability to accept charitable remainder trusts
Learn more about receiving trust donations.

ADDRESS

Hess-Verdon & Associates, PLC
620 Newport Center Drive Suite 1400
Newport Beach, California, 92660
Office: (949) 706-7300 
Toll Free: (888) 318-4430

Copyright © 2022 Hess-Verdon, PLC. All rights reserved. The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship. The verdicts and settlements listed on this site are intended to be representative of cases handled by Hess-Verdon & Associates, PLC. These listings are not a guarantee or prediction of the outcome of any other claims. The information contained on this website is not tax or legal advice and is not a substitute for such advice. State and federal laws change frequently, and the information in this article may not reflect your own state’s laws or the most recent changes to the law. For current tax or legal advice, please consult with an accountant or an attorney.

RECENT POSTS

Duties of an Executor of an Estate. What You Should Know!

Request a Case Review Today Call us at 888-318-4430Duties of an Executor of an estate What They Can and Cannot Do An executor is a person who has the legal responsibility to carry out the instructions of a will. The duties of an executor can be complicated and...

Does an Executor Have to Show Accounting

Request a Case Review Today Call us at 888-318-4430Does an executor have to show accounting to beneficiaries? Once an individual passes away, their estate is appointed an executor to fulfill the deceased's wishes. Their primary duty is to distribute the assets among...

Beneficiary Living in Inherited House. What to Know!

Request a Case Review Today Call us at 888-318-4430Beneficiary Living in Inherited house.  Buyout? Petition to Partition? Evict? Purchase? Repair? You recently lost a parent or other loved one, and as a result, you've inherited a house. It's essential to take your...

What are the Advantages of a Trust? What You Should Know!

Request a Case Review Today Call us at 888-318-4430What are the Advantages of a Trust? What You Should Know! Trusts and a last will and testament are two components vital to an estate planning process. While most people understand the last testaments and wills, they...

Who are the Parties in an Estate. Trust and Estate Overview

Request a Case Review Today Call us at 888-318-4430Who are the parties in an estate Trust and Estate Overview Living trusts are critical in estate planning. Understanding the parties involved in estate planning helps you prepare and create an estate plan that works...

Hess-Verdon

JOIN HESS-VERDON CHARITABLE GIVING PROGRAM

We are excited to be able to offer 501(c)(3)’s the ability to accept charitable remainder trusts
Learn more about receiving trust donations.

ADDRESS

Hess-Verdon & Associates, PLC
620 Newport Center Drive Suite 1400
Newport Beach, California, 92660
Office: (949) 706-7300 
Toll Free: (888) 318-4430

Copyright © 2022 Hess-Verdon, PLC. All rights reserved. The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship. The verdicts and settlements listed on this site are intended to be representative of cases handled by Hess-Verdon & Associates, PLC. These listings are not a guarantee or prediction of the outcome of any other claims. The information contained on this website is not tax or legal advice and is not a substitute for such advice. State and federal laws change frequently, and the information in this article may not reflect your own state’s laws or the most recent changes to the law. For current tax or legal advice, please consult with an accountant or an attorney.

Call Now