Detailed answer

Hypothetical facts: You are the personal representative (executor or administrator) of a decedent’s estate in Montana. The estate includes a house with an outstanding mortgage. The estate needs to sell the house so the mortgage can be paid and the remaining sale proceeds distributed to heirs or beneficiaries.

In Montana, a personal representative generally must follow the probate process and obtain the court’s authority before selling estate real estate unless the will expressly gives broad power to sell or the heirs unanimously agree and the law permits a simpler procedure. The district court that opened the probate matter supervises the sale, protects creditors, and ensures proper payment of debts (including mortgages) before distributing proceeds to heirs. For the statutory framework for probate and guardianship matters, see the Montana Code Annotated (Title 72) and the Montana Courts resources: Montana Code Annotated (MCA) and Montana Courts.

Typical step-by-step process

1. Confirm your authority and the property title

   Confirm you are the appointed personal representative. Check the will for any language that authorizes sale of real estate. Pull the property title to determine whether the mortgage is a recorded lien. Obtain a copy of the mortgage and any payoff procedures the lender requires.

2. Inventory, appraisal, and notify interested parties

   Prepare an inventory and obtain at least one reasonable market valuation or appraisal of the house to justify the sale price. Identify heirs, beneficiaries, and known creditors. Montana probate practice requires notice to interested persons and to creditors before major actions—plan to serve or publish notices according to the court’s requirements.

3. Prepare and file a petition with the district court

   File a petition (often called a petition to sell real property or motion for authority to sell) in the county where probate is pending. The petition should state why sale is necessary (to pay debts, preserve estate value, cover administration expenses), include the proposed sale terms (purchase price or method of sale), cite the mortgage payoff amount or provide that a payoff will be obtained at closing, and request a court order authorizing the sale and the payoff of liens from sale proceeds.

4. Give notice and obtain approval

   Serve or mail the petition and a notice of hearing to all heirs, beneficiaries, and known creditors as required by Montana law and the local court rules. The court will schedule a hearing. If there are no objections (or objections are overruled), the judge will sign an order authorizing the sale and specifying any conditions (for example, minimum bid, confirmation requirements, and how liens will be handled).

5. Complete the sale and pay the mortgage at closing

   Work with a title company or closing attorney to obtain a payoff statement from the mortgage lender and to ensure the lender’s lien is released when paid. The closing agent typically receives the sale proceeds, pays the mortgage and other valid liens and closing costs, and disburses the remainder to the estate. Record the deed and any lien releases with the county clerk and recorder.

6. Account to the court and distribute remaining funds

   After closing, file a final accounting or report with the court showing sale proceeds, mortgage payoff, closing costs, fees, taxes, and proposed distribution to heirs/beneficiaries. Ask the court to approve the distribution and to formally close the estate or the sale matter if required.

7. Recordkeeping

   Keep copies of the court order authorizing sale, the sales contract, payoff statements, closing statements, recorded deed, lien releases, and accounting documents. The court will expect documentation if questions arise later.

When court approval may not be needed

There are limited situations where a sale can occur without the typical petition process, such as:

• When the will expressly grants the personal representative broad authority to sell real estate without further court approval,
• When property passes outside probate (for example, by deed of transfer on death, joint tenancy with right of survivorship, or beneficiary deed), or
• When the estate qualifies for a small estate procedure that permits simplified distribution—if the house is not encumbered in a way that prevents such a procedure.

Whether a simplified procedure applies depends on the circumstances; consult the applicable Montana probate statutes and your local court clerk.

Practical points about mortgage payoffs

• Request a written payoff statement from the mortgage lender that includes a valid payoff date. Most lenders limit payoff statements to a short window (e.g., 7–30 days).
• The closing agent usually pays the lender from sale proceeds and obtains a satisfaction of mortgage or lien release to record.
• If the mortgage balance exceeds sale proceeds, the estate may need to negotiate with the lender (short sale, lender approval) or the personal representative may need court authority to reject or renegotiate the mortgage. The court’s role is to balance creditor rights and estate administration.

Where to find Montana law and forms

General Montana statutes and guidance about probate, fiduciaries, guardianships, and conservatorships are in the Montana Code Annotated (Title 72). You can search the statutes here: https://leg.mt.gov/bills/mca/. For practical court procedures and local forms, visit the Montana Courts website: https://courts.mt.gov/ and the clerk of the district court in the county where the probate is pending.

Estimated timeline and costs: Expect at least several weeks to a few months for petitioning, notice, and hearing depending on court schedules and whether objections arise. Budget for court filing fees, publication costs (if required), appraisal and title fees, closing costs, realtor commissions (if listed with an agent), and attorney fees if you use a lawyer.

Helpful Hints

• Start by pulling a complete title report and getting a lender payoff quote—this avoids surprises at closing.
• Gather a clear inventory and an appraisal or broker price opinion to justify the proposed sale price to the court.
• Notify heirs and creditors early and in the required manner—failure to give proper notice can delay or invalidate the sale.
• Work with a closing agent or title company experienced in probate closings in your county; they know how to handle lien payoffs and recording requirements.
• Consider whether a short sale or lender-approved sale is needed if the mortgage balance exceeds market value—get lender pre-approval before scheduling a court hearing in that case.
• Keep careful records of every step: filings, notices, appraisals, communications with the lender, and closing documents.
• If parties disagree or an heir objects, mediation or court hearings may be necessary—anticipate added time and cost.
• When in doubt about procedure or complex creditor issues, consult a Montana probate attorney to avoid mistakes that can slow the estate or expose you to personal liability.