Last Updated on January, 2025
Losing a loved one is already an emotional process, and having to handle their estates can make things even tougher. One of the questions people often ask in this situation is, can you sell a house in probate Maryland? The short answer is yes, but it’s not as straightforward as a typical home sale.
Probate involves some extra legal steps and requirements. Let’s break it down in simple terms so you can navigate the probate process more easily.
Quick Summary
- Selling a house in probate involves several steps, including being appointed as the executor, obtaining court approval, notifying heirs and creditors, and adhering to the 90% rule for the sale price. Executors must follow Maryland’s legal procedures to ensure compliance and resolve disputes if they arise.
- Executors can sell the property “as-is” to cash buyers, who often close quickly and accept properties without repairs, or they can make repairs to increase the home’s value and appeal to traditional buyers.
- Executors may face delays due to court proceedings, disagreements among heirs, or issues with valuation. Planning ahead, such as placing property in a trust, and working with experienced professionals or cash buyers can help streamline the process.
Can You Sell a House in Probate Maryland: What Exactly is Probate?
Probate is a legal process that happens after someone dies. The goal is to manage the deceased person’s estate, pay off any outstanding debts and taxes, and distribute the remaining assets (like property) to the heirs.
In Maryland, probate is usually required unless the property was placed in a trust or jointly owned.
If you’re the person in charge of handling the probate estate, which is usually called the executor or personal representative, you’ll be managing the probate process, including any home sale.
But selling a house in probate in Maryland isn’t just a regular transaction. The court has to be involved, and there are a few specific steps you need to take before the “For Sale” sign goes up.
It can feel like there’s a lot to keep track of, but once you know the process, it becomes more manageable.
Here’s What You Should Do!
Step 1: Get Appointed as Executor
The first step in selling a house in probate in Maryland is ensuring that someone is officially appointed as the executor or personal representative of the estate.
In many cases, this person is named in the deceased person’s will. If there’s no will, or if the will does not name an executor, the court will appoint someone—usually a close family member.
Being the executor gives you the legal authority to manage the estate, which includes paying bills, managing assets, and selling the house if necessary.
It’s an important responsibility, and it starts with filing paperwork with the probate court in the county where the deceased person lived.
Once the court has appointed you, you’ll receive legal documents called “Letter of Administration.” These letters give you the official power to handle the estate, including selling the house.
Without them, you won’t be able to move forward with any legal decisions involving the probate property.
Step 2: Get the Court’s Green Light
In Maryland, you can’t just go ahead and sell a probate house without the court’s green light. You’ll need to file a petition with the probate court asking for permission to sell the property. This petition explains why selling the home is necessary.
For instance, maybe the estate needs money to pay off debts, or maybe the house will eventually be sold to distribute all the proceeds among heirs.
It’s also important to know that the home’s sale price must meet certain standards. Maryland law requires that the house sells for at least 90% of its appraised value. So, getting an accurate appraisal of the property’s fair market value early on is critical.
The appraisal gives the court and potential buyers an official sense of what the house is worth. Without this, the probate sale can’t move forward.
Step 3: Notify Heirs and Creditors
Once you’ve gotten the court’s approval to sell, the next step is notifying all the interested parties. This includes the heirs who will inherit from the estate and any creditors who are owed money.
You’ll need to make sure they are all aware of the probate sale and give them a chance to raise any objections. Sometimes, family members might disagree on whether the house should be sold or not, which can complicate things.
If someone disputes the sale, whether it’s an heir who wants to keep the property or a creditor with a claim, the probate court will have to resolve these issues before the sale can go forward.
These disputes can cause delays, but it’s important to follow the legal process to avoid problems later on.
Step 4: Sell the House
Now, let’s get to the part you’ve probably been waiting for, selling the house. Once you obtain court approval and have notified all the necessary parties involved, you can list the house for sale.
When it comes to probate sales, you can either use a real estate agent or work with a cash buyer.
Real estate agents who specialize in probate sales can be helpful because they are familiar with the legal requirements and timelines. However, some sellers prefer the speed and simplicity of working with a cash home buyer.
Cash buyers can often close quickly and are willing to purchase homes “as-is,” which means you won’t need to spend time or money on repairs.
No matter how you decide to sell, remember the 90% rule—the house must sell for at least 90% of its appraised value to meet Maryland’s probate requirements.
Step 5: Pay Debts and Distribute the Funds
Once the house is sold, the next step is settling the estate’s debts. The proceeds from the sale are first used to pay off any outstanding bills, such as the mortgage, property taxes, or other debts the deceased person owed.
In Maryland, this might also include estate tax and inheritance tax, depending on the size of the estate and who the heirs are.
After the debts are settled, the remaining money is divided among the heirs according to the will. If there isn’t a will, Maryland’s intestacy laws determine how the estate assets are distributed.
Handling Repairs and “As-Is” Sales
Many probate houses are older or have been lived in for a long time, so they might need some repairs or updates. If the estate does not have the cash to fix the probate property up, don’t worry, you can still sell it as-is.
A real estate investor or cash buyers are often willing to buy houses that need work, though they might offer a lower price to account for the repairs.
On the flip side, if the estate does have the funds, fixing up the house before selling could increase its value and attract more buyers.
It’s really a balancing act between how much time and money you’re willing to invest and how quickly you want to sell property.
Pitfalls to Watch Out for
While selling a probate house is possible, there are some common hurdles to be aware of:
- Court Delays: The probate court process can be slow, especially if the estate is complicated or there are disputes between heirs.
- Heir Disagreements: Family members might not always see eye-to-eye on selling the real property, which can create tension and delays.
- Valuation Issues: Make sure to get the property appraised early on, as the house must sell for at least 90% of its appraised value.
How Long Does the Probate Process Take?
The probate process in Maryland can take anywhere from six months to over a year, depending on the complexity of the estate and how quickly you can get court approval. The home sale itself can go faster, especially if you work with a cash buyer who’s ready to move quickly.
Relevant guides:
Want to Speed it Up?
If you need to speed things up, cash buyers can often close quickly since they don’t rely on financing. At We Buy Houses for Cash Maryland, we specialize in fast, hassle-free transactions.
With all the necessary paperwork, like the death certificate, Letter of Administration, and an appraisal, ready from the start, we can help you avoid unnecessary delays.
Planning ahead can also help. Placing property in a trust or using joint tenancy with right of survivorship can help avoid probate entirely.
