How to Find Out Exactly Where the Sale Proceeds from a House in Louisiana Will Go

Short answer: To know where sale proceeds will go, you must determine who holds legal title, whether there are outstanding secured claims (mortgages, liens), whether the property is being sold as part of a succession (probate), and whether any forced‑heir, surviving‑spouse, tax, or administration expenses have priority under Louisiana law. This process normally requires a title search and a review of the succession or court papers that authorize the sale.

Detailed answer — step by step

1. Confirm who owns the property now

Start by obtaining a copy of the deed recorded for the property at the parish clerk of court where the property is located. The deed tells you the current recorded owner(s). If your dad’s name is still on the deed, he is (or was) the recorded owner; if a succession representative (administrator or executor) is on the deed, the estate is already in administration.

2. Get a title / lien search

A title search (often performed by a title company or an attorney) pulls recorded mortgages, tax liens, judgment liens, and other claims against the property. In Louisiana, recorded mortgages and liens are the first to be paid from sale proceeds (subject to applicable rules). You can also search the parish clerk’s online records or visit the clerk’s office to look for recorded instruments.

3. Check for mortgages and payoff amounts

If there is a mortgage, contact the mortgage holder for a payoff statement showing the remaining principal, accrued interest, escrow shortages, and any prepayment fees. A mortgage lender has a secured claim that will usually be paid from sale proceeds before distribution to heirs.

4. Look for tax liens (federal and state)

Federal tax liens are recorded in public records and will attach to proceeds unless released. Check with the IRS (federal liens) and the Louisiana Department of Revenue or local parish tax assessor/collector for state/parish tax liens and unpaid property taxes. Unpaid property taxes generally have a priority claim against proceeds.

5. Determine whether the property is part of a succession (probate) and what kind

In Louisiana the transfer of a decedent’s property is handled through a succession. Successions can be judicial or extrajudicial (an uncontested transfer handled outside court when the law allows). The succession representative (executor/administrator or heir acting under extrajudicial succession) is the person authorized to sell property belonging to the estate. If the sale is part of a succession, the succession record (court file or extrajudicial documents) will show how proceeds must be applied: payment of succession expenses and creditors first, then distribution to heirs according to the will or Louisiana intestacy and forced‑heir rules.

For an overview of Louisiana succession law and to locate statutory language, see the official Louisiana legislative website: https://legis.la.gov. Search the Civil Code (Successions) and relevant Code of Civil Procedure provisions for judicial procedures.

6. Determine priority of payments from proceeds

Generally, the order for applying sale proceeds is:

• Costs of sale (realtor commissions, closing costs).
• Charges necessary to effect the sale (repairs, attorney fees for the sale if authorized).
• Payment of secured creditors (mortgages, recorded security interests) to satisfy liens that are specific to the property.
• Priority tax claims (property taxes, certain state and federal tax liens).
• Costs and expenses of administering the succession (funeral costs, succession filing fees, court costs, executor/administrator commissions if allowed).
• Unsecured creditors of the estate (claims proven in the succession).
• Remaining balance distributed to heirs or legatees according to the will or Louisiana intestacy and forced‑heirship rules (legitime and usufruct rules can affect what the surviving spouse or children receive).

7. If a sale is court‑authorized (judicial) you can inspect the record

If a judge approved the sale (for example, in a judicial partition or a judicial sale in succession), the court file is public. Obtain copies of pleadings and the court’s minute entry or judgment that orders sale and distribution. Those documents show how the judge ordered proceeds to be applied and any reserved balances held by the court clerk.

8. If the sale is outside court (extrajudicial), get the succession accounting

In extrajudicial successions the succession representative should provide an accounting and copies of documents showing payoffs and distributions. Ask for a written settlement or accounting showing: mortgage payoff, liens paid, sales commissions, taxes, creditor claims, and amounts distributed or reserved for heirs.

9. Special Louisiana considerations

• Forced heirship: Louisiana recognizes forced‑heirship protections for certain children; those protections can limit how much a decedent could lawfully leave to others. That affects how net proceeds can be distributed to heirs. See the Louisiana Civil Code (Successions) for details via the legislature site: https://legis.la.gov.
• Community property: If the decedent was married, community property rules and the surviving spouse’s usufruct or ownership share can change distribution.
• Homestead rights: Louisiana has protections for homestead that can affect forced sale or distribution in some circumstances.

10. Ask for a closing statement and receipts

At closing, request the settlement statement (HUD‑1 or similar closing disclosure) and copies of payoff letters and cancelled notes. The closing statement shows exactly how sale proceeds were applied: amounts paid to lenders, fees paid, taxes paid, amounts delivered to the succession representative or court. Keep copies for the succession accounting.

11. If you still can’t figure it out, get a copy of the succession accounting or court judgment

If amounts are disputed or unclear, you can request the succession accounting from the succession representative or obtain court records if the succession was judicial. If the representative refuses or there is a dispute among heirs, a lawyer can petition the court to require an accounting and direction on distribution.

Key documents to gather

• Recorded deed(s) from the parish clerk of court.
• Title search or abstract of title.
• Mortgage payoff statement(s) and lien releases.
• Tax notices and liens (federal IRS lien search; Louisiana Department of Revenue).
• Succession documents (act of succession, executor/administrator appointment, court judgment if applicable).
• Closing statement and receipts from the sale.

Helpful Hints

• Start at the parish clerk of court: recorded deeds and liens are public and usually available online. The clerk’s office can point you to the recorded instruments tied to the property.
• Get a title search early. A title company or an attorney can find hidden liens or recorded judgments that you might miss.
• Ask the mortgage lender for a written payoff quote that is valid through the closing date. That quote will show the amount that must be paid from the proceeds to clear the mortgage.
• Make sure the succession representative gives a full accounting showing exactly how sale proceeds were applied and what distribution (if any) is left for heirs.
• If you are an heir and suspect wrongdoing or misapplication of funds, contact a Louisiana attorney. You may ask the court for an accounting or to remove a representative who is not fulfilling duties.
• Keep careful records: copies of the deed, title report, payoff statements, closing disclosures, cancelled checks, and receipts will support any future questions or disputes.
• Use the Louisiana legislative website to look up statutes that apply to successions and forced heirship: https://legis.la.gov.
• Federal tax liens: check the IRS for lien information and procedures: https://www.irs.gov.

When to consult a lawyer

Consult a Louisiana attorney if:

• You can’t obtain a clear accounting from the succession representative.
• There are disputed claims to the proceeds or multiple claimants.
• There are unresolved liens, tax complications, or suspected fraud.
• You need help enforcing your rights as an heir or creditor.

Disclaimer: This article is for general informational purposes only and does not constitute legal advice. I am not a lawyer. For advice about your specific situation, consult a licensed Louisiana attorney who can review the facts and documents and explain how Louisiana law applies to your case.