Disclaimer: I am not a lawyer. This is general information, not legal advice. Use this to prepare for discussions with a licensed Iowa attorney or the probate court.

Detailed Answer

Selling real estate that belonged to a deceased parent almost always requires dealing with the estate’s debts first. Under Iowa probate law, an appointed personal representative (executor or administrator) manages the estate, notifies creditors, pays valid claims out of estate assets, and then distributes or sells property as allowed by the will or by court order. The key steps are below. For the governing provisions, see Iowa’s probate law (Iowa Code chapter 633): Iowa Code Chapter 633 (Probate). You can also review the Iowa Courts’ probate overview: Iowa Courts – Probate.

1. Confirm whether probate is required.

   Not every estate needs full probate. If the estate is small or title passes by joint ownership, beneficiary deed, or transfer-on-death arrangement, you may avoid full probate. Ask the county probate clerk or a probate attorney whether a full administration is needed.

2. Locate the will and appoint the personal representative.

   If there is a will, file it with the county probate court where your parent lived and ask for appointment of the personal representative (sometimes called executor or administrator). The court issues official authority (letters testamentary or letters of administration) that lets the representative act on behalf of the estate.

3. Inventory estate assets and identify likely creditors.

   The representative should list all estate assets (bank accounts, real estate, vehicles) and known debts (mortgages, credit cards, medical bills). Obtain mortgage payoff statements, check for recorded liens, and run a title search on the house to find encumbrances that must be cleared before closing.

4. Provide notice to creditors as required by Iowa law.

   Iowa law requires that creditors be notified so they can file claims against the estate. The probate process typically includes published notice and may require mailing notice to known creditors. The court’s probate clerk or an attorney can tell you the specific form and content of the notices under Iowa law (see Iowa Code chapter 633 linked above).

5. Accept, reject, or dispute creditor claims and resolve valid claims.

   Creditors who submit timely, valid claims must be paid from the estate’s assets according to priority rules. If a creditor’s claim is invalid or disputed, the representative can object and the court will decide. Estate funds, sale proceeds, or insurance proceeds typically pay debts. Federal and state tax liens may require special handling and priority.

6. Decide whether a court-ordered sale is required.

   If the will grants the representative authority to sell real estate, sales can proceed under that authority. If not, or if heirs disagree, the representative may need the court’s approval for the sale or to confirm a sale after bidding. The probate court can authorize sale of property to pay debts or to distribute proceeds to heirs.

7. Address mortgages and liens at closing.

   Before or at closing, obtain payoff statements for mortgages and releases for any paid liens. Title companies typically require lien clearance or provisions at closing to ensure the buyer receives clear title. If outstanding claims remain unresolved, the sale may need to close through escrow that holds funds to satisfy claims.

8. Close the sale and distribute proceeds consistent with the court order and the estate plan.

   Once creditor claims are resolved or adequate arrangements exist, the representative can complete the sale, pay valid claims and costs (probate fees, attorney fees, closing costs), and distribute remaining proceeds to heirs per the will or Iowa intestacy rules if there is no will.

Because probate procedure and creditor notice requirements are controlled by statute and local court rules, use the probate clerk and chapter 633 as your procedural guide: Iowa Code Chapter 633. For limited or small estate procedures that may allow quicker transfer, see the Iowa statutes on summary administration and small estates (consult the probate court).

Common timelines and practical notes

Timelines depend on the type of notice required and whether creditors file claims. Practical realities buyers and lenders expect:

• Buyers and title companies often prefer a clear probate or court authorization before buying—this reduces the risk of post-closing creditor claims against the property.
• If you must sell quickly, consider a court-authorized sale or selling subject to probate contingencies; both have trade-offs and usually require attorney involvement.
• Mortgage lenders, federal tax liens, and mechanic’s liens take priority over unsecured creditors. Confirm payoff requirements early.

Helpful Hints

• Contact the county probate clerk early to learn local filing requirements and fees.
• Hire a probate attorney if debts are large, disputed, or if multiple heirs disagree about selling the property.
• Get a current title report before listing the home to uncover liens or judgments.
• Keep detailed records of all notices, claims, payments, and communications with creditors.
• Obtain payoff statements for any mortgage or secured loans before agreeing to sell.
• If the estate is small, ask about simplified or summary administration procedures that speed transfers (check with the probate court or an attorney).
• Consider surplus funds escrow if a creditor might later make a claim; this protects the buyer and helps close the sale sooner.
• Be aware of priority rules (secured vs unsecured) and federal liens—these can affect sale proceeds and what must be paid at closing.