Detailed Answer — Step‑by‑step guide for Oregon

If your father’s house is sold (while he was alive or after his death), where the proceeds go depends on who owns the property, whether there is a will or probate, existing liens or mortgages, and any creditor or tax claims. Below is a practical, ordered checklist to discover exactly where the sale money should go under Oregon law, plus short explanations of why each step matters.

1. Confirm legal ownership of the house

Look at the deed recorded at the county recorder/land records office where the property is located. The deed tells you whether the house is owned:

• by your dad alone (sole ownership);
• as joint tenants with right of survivorship (automatic transfer to the surviving joint tenant on death);
• as tenants in common (each owner has a divisible share that can pass by will or intestacy); or
• in a trust (trust documents control distribution).

If the deed shows joint tenancy, the survivor typically becomes owner automatically and sale proceeds go to the survivor. If the property is in a trust, the trust terms govern distribution. If owned solely by your dad, the proceeds will usually become part of his estate and pass according to his will or Oregon intestacy rules.

2. Check for a trust or beneficiary designation

If the deed indicates the property is held in a revocable living trust, contact the trustee and ask for trust provisions. Trust assets usually avoid probate and proceeds follow the trust instructions. If there’s a transfer-on-death deed or similar instrument, that controls disposition as well.

3. Determine whether there is a will and whether the estate is in probate

If your dad died owning the house outright and left a will, the executor named in the will (after court appointment) manages sale and distribution. If there is no will, the court will appoint an administrator and the estate is administered under Oregon intestacy rules. Oregon’s rules for intestate succession and distribution are found in the Oregon Revised Statutes (see general ORS resources): Oregon Revised Statutes (ORS). For practical probate procedure and forms, see the Oregon Judicial Department probate resources: Oregon Judicial Department — Probate.

4. Search the county property and lien records for mortgages or liens

Before any net proceeds are released from a sale, secured creditors named on the title (mortgages, deeds of trust) must be paid from the sale proceeds. County recorder/registrar offices keep records of deeds, mortgages, and recorded liens. Also search for judgments recorded against your dad in the county judgment index; those may attach to proceeds.

5. Look for federal or state tax liens

Federal tax liens (Internal Revenue Service) and Oregon Department of Revenue liens have priority over many unsecured creditors and will need to be resolved out of proceeds. Check with the IRS and with the Oregon Department of Revenue: Oregon Department of Revenue.

6. If the estate is open in probate, request an accounting or file to get information

If the property is part of a probate estate, the personal representative (executor/administrator) has a duty to collect assets, pay valid debts, and distribute the remainder to beneficiaries. In most probate administrations the personal representative must provide notice to heirs and creditors and, on request, provide an accounting of receipts and disbursements. If you are an heir or beneficiary and you don’t receive information, you can file a motion in the county probate court to compel an accounting or remove a personal representative for cause. The Oregon courts’ probate page explains filings and forms: Oregon Judicial Department — Probate.

7. Identify creditors and unpaid bills that could come from the sale

Valid creditor claims—credit cards, medical bills, funeral bills, unsecured loans—may be paid from estate assets if presented and allowed in probate (subject to Oregon notice rules). Secured claims (mortgage, recorded liens) are paid first. Federal and state tax claims can be significant. If you are selling property when the owner is alive, a buyer’s title company will typically require lien payoff statements before closing.

8. Talk to the closing/title company handling the sale

The closing agent or title company prepares a settlement statement showing how gross sale proceeds are divided (payoff of mortgage(s), liens, closing costs, real estate commissions, escrow charges, and net proceeds to seller or estate). Ask for a copy of the preliminary settlement statement (“HUD-1” or Closing Disclosure). That document shows exactly where each dollar goes at closing.

9. If you still need clarity or suspect wrongdoing, consider court action or counsel

If the personal representative refuses to provide an accounting, if the trustee won’t explain trust distributions, or if you suspect misappropriation of funds, you can petition the probate court for an accounting, removal, or surcharge. Because probate and trust litigation can be complex, you may want to consult an attorney who handles Oregon probate and trust matters.

Example scenarios (hypothetical)

Scenario A — House owned by dad alone, he died with a will: Administrator/executor sells house during probate. Pay mortgage and recorded liens first. Pay valid creditor claims and taxes. Distribute remainder to beneficiaries under the will.

Scenario B — House held in a revocable trust: Trustee sells property. Trustee pays mortgage and liens, then follows trust instructions for distributing the net proceeds (no probate required).

Scenario C — House owned jointly with right of survivorship: Surviving joint owner becomes owner automatically; sale proceeds go to the survivor; the decedent’s estate typically has no interest unless there is evidence of intent otherwise.

Where to find records and help in Oregon

• Property deeds and recorded documents: county recorder/registrar where the property is located (search online or visit the county website).
• Probate case records: county circuit court — use the Oregon Judicial Department resources: court probate resources.
• State tax liens: Oregon Department of Revenue: dor.oregon.gov.
• Federal tax liens: contact the IRS or check the county records (IRS files a Notice of Federal Tax Lien in county records).

Helpful Hints

• Start by pulling the recorded deed online — it tells ownership type and often reveals mortgages or deeds of trust.
• Ask the closing/title company for the settlement statement before closing; that shows exactly how sale money will be distributed.
• If the property is in probate, request a copy of the petition, inventory, and any accountings filed in the probate case.
• If you are a named beneficiary or heir, put your request for an accounting in writing to the executor/trustee and keep a record of communications.
• Search county recorded liens and judgment indexes — many counties have online search tools for free or a small fee.
• Watch for hidden claims: unpaid contractors (mechanic’s liens), homeowners association liens, and tax liens can attach to proceeds.
• If the distribution plan seems wrong, you can file objections or a request for an accounting in probate court; an attorney can explain deadlines and strategy.
• Be realistic about timelines: resolving liens, creditor claims, and probate requirements can add weeks or months before final distribution.

Important: Oregon law controls probate and intestate succession; consult the Oregon Revised Statutes and the Oregon Judicial Department for forms and procedures: Oregon Revised Statutes (ORS), Oregon Judicial Department — Probate.

Disclaimer: This article provides general information about Oregon law and is not legal advice. It does not create an attorney‑client relationship. For advice about a specific situation, consult a licensed Oregon attorney experienced in probate, trust, or real estate law.