Marc Cormier, Probate Realtor

Probate real estate refers to property that becomes part of the probate process when the owner passes away. When a person dies and leaves behind assets, including real estate, their estate must go through a legal procedure known as probate to distribute these assets among heirs or beneficiaries. Probate is a court-supervised process designed to ensure that the deceased person’s debts are settled and that their property is transferred to the rightful heirs.

Yes, an executor can sell a house in probate, but the process involves several legal steps and considerations. When someone passes away and leaves behind real estate, the appointed executor or personal representative has the authority to sell the property as part of the probate process.

Selling a house in probate in Maryland involves a specific legal process that must be followed carefully. Here are the general steps you should take:

1. Petition for Probate: To initiate the probate process, you need to file a petition with the Maryland Orphans’ Court in the county where the deceased person lived at the time of their death. If there’s a will, you’ll also need to submit the will for validation. If there’s no will, Maryland’s intestate succession laws will determine how the property is distributed.
2. Appointment of an Executor or Personal Representative: The court will appoint an executor or personal representative to oversee the estate, which includes handling the sale of the house. This person is responsible for ensuring that all legal requirements are met.
3. Property Appraisal: An appraisal of the property’s current market value is typically required. The appraisal helps in setting a fair selling price for the house.
4. Notification to Heirs and Beneficiaries: All heirs and beneficiaries must be informed about the planned sale of the property. They have the right to review the terms of the sale and, in some cases, may object to it or propose alternative solutions.
5. Marketing and Sale: With court approval and after addressing any objections, you can proceed with marketing and selling the house. This may involve listing the property with a real estate agent, conducting an auction, or selling it through other means.
6. Settlement of Debts and Expenses: The proceeds from the sale are typically used to settle any outstanding debts, taxes, and expenses related to the estate.
7. Distribution of Proceeds: After all financial obligations are met, the remaining proceeds from the sale are distributed to the heirs or beneficiaries in accordance with the court’s orders.
8. Final Court Approval: You may need to seek final court approval to confirm that the sale has been completed correctly and that all legal requirements have been satisfied.

It’s important to note that Maryland’s probate process can be complex, and specific procedures and timelines must be adhered to. Working with an attorney who specializes in Maryland probate law can be invaluable in navigating this process smoothly.

Additionally, keep in mind that the information provided here is general in nature, and it’s essential to consult with legal professionals familiar with Maryland’s probate laws and the specifics of your situation for accurate guidance.

If a probate property has negative equity, meaning that it is worth less than the outstanding mortgage or debts associated with it, the situation can present unique challenges.

Dealing with negative equity in a probate property can be a complex and delicate matter. It’s essential to approach the situation with transparency, involve legal professionals, and explore all available options to minimize financial losses and fulfill your fiduciary duties as an executor or personal representative.

Remember that the specific actions to take may depend on the laws and regulations of your jurisdiction, so consult with legal professionals who are knowledgeable about the probate process in your area.