How an executor (personal representative) sells real property to pay estate debts — South Carolina

Short answer: As the personal representative (often called executor) in South Carolina you generally must (1) be appointed by the probate court and obtain letters testamentary or of administration; (2) identify and value estate assets and creditors; (3) follow the Probate Code’s notice procedures for creditors; (4) get authority to sell real property (from the will or the court); (5) market and sell the property under court rules; and (6) use the sale proceeds to pay administrative expenses and creditors before distributing any remainder. This process relies on the South Carolina Probate Code (Title 62). For the statutory framework see: https://www.scstatehouse.gov/code/t62.php.

Detailed answer — step‑by‑step under South Carolina law

Below is a stepwise explanation that assumes a typical situation: decedent owned a house with some unsecured debts and a mortgage, and the estate lacks sufficient cash to pay creditors. Start every step by checking the will and the probate court file and, where unclear, consult the probate court or a lawyer.

1. Confirm appointment and legal authority

Do not act as executor until the probate court issues letters testamentary or letters of administration. Those letters give you the legal authority to collect assets and act on behalf of the estate. If the will expressly grants power to sell real property, the will may limit or simplify court involvement; if it does not, you will usually seek the court’s authorization to sell.

2. Inventory assets, determine liabilities, and protect value

• Prepare a complete inventory of estate property (real estate, bank accounts, securities, personal property).
• Get one or more appraisals or market analyses for the real property so you can demonstrate fair value to the court and potential buyers.
• Secure and insure the property while estate matters proceed.

3. Provide notice to creditors and follow creditor-claim rules

South Carolina’s probate statutes set out the procedures for notifying creditors and handling claims. You must follow the rules for mailing notice to known creditors and for publishing notice to unknown creditors. These steps are vital because they define the window for creditor claims and because a court-authorized sale will typically expect that notice procedures were followed. See South Carolina Code Title 62 (Probate) for creditor‑claim procedures: https://www.scstatehouse.gov/code/t62.php.

4. Decide whether court authorization is needed

Two common paths to sell real property:

• Authority in the will or by statute: If the will expressly gives you the power to sell and that power is properly exercised, the probate court may simply note the exercise of that power when settling the estate.
• Court approval: If no clear power exists, or if a buyer or title company requires it, file a petition with the probate court asking for authority to sell the property. The petition typically includes a copy of the proposed sale contract, appraisal or market value evidence, and a request to approve terms and confirm the sale at a hearing.

When in doubt, seek court approval — it avoids later challenges from heirs or creditors and ensures clean title to the buyer.

5. Market and negotiate an arm’s-length sale

Once you have authority (or the will grants the power), sell the property at fair market value. Use a licensed real estate broker or agent experienced with probate sales. Keep documentation: listing agreement, offers, counteroffers, and any communications with the buyer. If the sale is by private contract, include in your petition to the court the contract and details of how the price was determined.

6. Obtain court confirmation if required

Some sales — especially those below appraised value or to interested parties — require a confirmation hearing. The court will confirm the sale only if it finds the sale was made in good faith and for fair value. The court’s order authorizing or confirming the sale usually directs how proceeds are to be applied (pay mortgage, administrative costs, creditors, etc.).

7. Close the sale and satisfy liens and creditors

• At closing, use estate bank accounts and provide the title company or closing attorney with the court order and letters testamentary.
• Pay any secured creditors (mortgage or liens) from sale proceeds first, then reasonable funeral and administrative expenses, and then unsecured creditors according to priority rules.
• Retain records of all receipts and disbursements; the court and beneficiaries will expect an accounting.

8. Final accounting and distribution

After debts and taxes are paid and claims resolved, prepare a proposed distribution plan and accounting for the probate court. The court will authorize distributions to beneficiaries under the will or under South Carolina intestacy law if there is no will.

Common practical issues and how to handle them

• Mortgage or secured debt: Contact the lender early to get a payoff statement. The mortgage lien is paid from sale proceeds at closing.
• Insufficient proceeds to pay all debts: If the estate is insolvent, follow the statutory priority rules for paying debts; you may have to petition the court to reject or compromise certain claims.
• Heirs object to the sale: Court hearings give heirs a chance to object. Have good appraisals and documentation to show the sale is fair and necessary to pay debts.
• Title and marketability: Clear any title defects before closing. Many buyers and title companies require a court order plainly authorizing the personal representative to sell.

Hypothetical example (short)

Ms. Lee dies owning a house worth about $150,000 and leaves a will naming you as personal representative. The estate has $80,000 in unsecured debts and a $60,000 mortgage on the house. The estate has little cash. You petition the probate court for letters testamentary, notify creditors as required, obtain a court order authorizing sale, list the house with a broker, accept a $155,000 offer, close the sale under the court’s confirmation, pay the mortgage and administrative expenses from the proceeds, settle valid creditor claims, and then distribute the remainder to beneficiaries per the will.

Key South Carolina legal sources

Primary statutes and rules governing probate and the personal representative’s duties are found in South Carolina Code Title 62 (Probate). Review Title 62 for specifics on appointment, inventories, creditor claims, and the powers and duties of personal representatives: https://www.scstatehouse.gov/code/t62.php.

For practical probate court procedures (forms, local instructions, and contacts), see the South Carolina Judicial Branch probate pages: https://www.sccourts.org/probate/.

Helpful Hints

• Get formal letters testamentary/administration before handling estate property.
• Document everything: appraisals, listing agreements, offers, court filings, notice to creditors, and receipts for payments.
• Notify known creditors promptly and follow published notice procedures in Title 62.
• Obtain court approval if the will is unclear or if the buyer/title company requests it — court orders reduce post‑sale risk.
• Keep estate funds in a separate estate account; never mix personal funds with estate funds.
• Talk with the mortgage lender early to confirm payoff amounts and procedures.
• If the estate appears insolvent, involve the court quickly before making discretionary distributions.
• Consider consulting a probate attorney when sales or creditor issues are complex or when heirs may contest the sale.

Disclaimer: This article explains general principles of South Carolina probate and selling estate real estate. It is educational only and does not constitute legal advice. Laws change and facts matter. For advice tailored to your situation, consult a licensed South Carolina probate attorney.