Selling real property from an estate.
Many estates include real property, such as a home, land, or rental property. If the property needs to be sold, there are specific legal steps that must be followed — especially when the estate is being probated through the court. Selling real property from an estate is not like selling your own home. It requires court authority, transparency, and careful record-keeping.
Here’s what you need to know.
Step 1: Confirm Your Authority
Before anything else, you must confirm that:
You have been appointed by the Court as the Personal Representative (also called the Administrator or Executor).
You have either full authority to sell property or have obtained a specific Court order allowing the sale.
👉 In many cases, you cannot list, sign a contract, or sell the property without prior Court approval.
Step 2: Value the property
To ensure the estate receives fair value for the property:
You may need to obtain a formal appraisal or a comparative market analysis (CMA) from a real estate professional.
Some Courts require a recent appraisal before approving a sale.
An appraisal protects the estate from accusations that the property was sold for less than its true value.
Step 3: Court Approval Requirements for Selling Real Property (Not required in all estates)
If the estate is being administered as a supervised estate, you must obtain Court approval before you can sell any real property. This is an extra layer of protection to ensure the estate’s assets are handled properly.
There are two stages of Court approval you must complete:
A. Permission to List the Property for Sale
Before you even list the property with a realtor, you must:
File a Motion or Petition asking the Court for permission to sell the property.
Explain why the sale is necessary or in the estate’s best interest (for example, to pay debts, to distribute assets, or because heirs agree to the sale).
The Court will review your request and, if approved, issue an Order allowing you to proceed with listing the property for sale.
B. Approval of the Sale Price Once Under Contract
After you receive an offer and sign a contract (contingent on Court approval), you must return to the Court to:
Request approval of the specific sale price and terms.
Show that the contract price is not less than three-fourths (¾) of the property’s overall value.
👉 In supervised estates, Missouri law generally requires that real estate not be sold for less than 75% of its appraised value unless the Court makes specific findings allowing a lower price.
You will typically need to provide:
A copy of the signed sales contract
A recent appraisal or market analysis supporting the value
Any relevant consents from interested heirs (if available)
The Court may hold a brief hearing to approve the sale formally.
Once the sale is approved by the Court, you can proceed to closing.
⚠️ Important Reminders for Supervised Estates
Do not sign closing documents or transfer title until you have a signed Court Order approving the sale.
Work closely with your probate attorney to prepare and file the necessary motions at each stage.
Document everything carefully — listing agreements, offers, appraisals, and communications with heirs.
Step 4: List the Property for Sale
Once you have authority and an appraisal:
Hire a realtor experienced in estate sales (many firms, including ours, can recommend trusted realtors).
Disclose in the listing that the sale is subject to Court approval if required.
Be prepared for a slightly longer process because of the probate paperwork involved.
Step 5: Accept an Offer — Contingent on Court Approval
When you accept an offer:
You may need to file a Petition for Approval of Sale with the probate court.
The court may set a hearing to review the terms of the sale and approve the transaction.
Interested parties (such as heirs) may be given notice and a chance to object.
Step 6: Close the Sale
Once the Court approves:
You sign the necessary paperwork as Personal Representative.
Title companies will require copies of your Letters of Administration or Letters Testamentary.
Proceeds from the sale must be deposited into the estate bank account — never into your personal account.
You must then:
Report the sale to the Court (sometimes by filing a Report of Sale)
Update your Inventory and future Accountings to reflect the transaction.
Important Notes About Selling Real Estate in Probate
Heir consent: If all heirs agree in writing, it can sometimes speed up approval.
Property condition: Probate property is usually sold as-is, but you must still disclose known defects.
Debts and mortgages: If the property has a mortgage, the mortgage must be paid off at closing.
Partial interests: Selling partial ownership (for example, if the decedent only owned 50%) can be much more complicated.
Selling real property from an estate takes careful legal steps to protect you, the heirs, and the estate itself.
Always work with your probate attorney to make sure all filings and approvals are handled correctly.
Legal Disclaimer: This information is provided for general educational purposes only and does not constitute legal advice. Please consult an attorney for advice regarding your specific case.