Detailed Answer
As the personal representative (often called executor) in Maryland, you may need to sell real property to pay estate debts. The process combines statutory duties, court procedures, and practical steps. Below is a clear, step‑by‑step explanation you can follow. This is an educational overview only—not legal advice.
1. Confirm your legal authority to act
Before doing anything with estate property, confirm you are legally appointed. The Register of Wills issues Letters Testamentary (for a will) or Letters of Administration (if there is no will). These letters identify the personal representative and list powers granted by law or the will.
If you have not received letters, contact the Register of Wills in the county where the decedent lived. The Maryland Courts website explains probate basics: https://www.mdcourts.gov/legalhelp/probate.
2. Review the will and statutory powers
Check the decedent’s will for express authorization to sell real property. If the will gives you explicit power to sell, you can typically proceed under that grant. If the will is silent, Maryland law and the letters you received determine your powers. If the will or letters do not clearly authorize a sale, you will likely need court approval.
3. Inventory assets and identify debts and priority claims
Prepare an inventory of estate assets, including the real property, bank accounts, retirement plans, and personal property. Identify secured claims (mortgages, liens), funeral expenses, taxes, and unsecured debts. Secured claims normally have priority against the asset they encumber; a sale often must satisfy those liens first.
4. Provide notice to creditors and follow claims procedures
Maryland requires that an estate follow creditor-claim procedures. That typically includes providing notice to known creditors and, in many cases, publishing notice to unknown creditors. Claims may need to be presented to you within a specific period under Maryland law. Check with the Register of Wills for the county and the probate rules that apply to deadlines and notice methods.
Because creditor claims affect whether you must retain the property or can sell it, do not distribute proceeds until claims are resolved or you have court approval to proceed.
5. Determine whether you need court permission to sell
Whether you must petition the probate court depends on the will, the Letters, and the estate circumstances. If the personal representative’s authority in the Letters or will is broad, you may sell without separate court approval. If authority is limited or the sale may affect interested parties (heirs, devisees, creditors), file a petition for authority to sell real property with the probate court to avoid later disputes.
6. Prepare to sell: appraisals, market preparation, and handling liens
Obtain a professional appraisal or broker’s market analysis so the court and potential buyers can see a fair value. Identify and resolve liens and mortgages: some liens must be paid from sale proceeds, while others may transfer with the property unless cleared at closing.
7. File any required petition and obtain court approval (if necessary)
If court approval is required or advisable, file a petition with the Orphans’ Court (or appropriate probate court) asking for authority to sell the property. The court may set a hearing and require notice to heirs, devisees, and creditors. If the court authorizes a sale, it may place conditions (e.g., sale price minimum, confirmation of sale, or payment of certain claims).
8. Market and sell the property
Work with a real estate agent experienced with probate sales. Disclose the estate status and any conditions of sale. Accept an offer and follow any court requirements for confirmation, if applicable. At closing, the title company or closing attorney will apply sale proceeds to pay mortgages, liens, probate costs, and approved creditor claims.
9. Account for proceeds and pay debts in the proper order
After closing, prepare an accounting that shows the sale proceeds, payments of debts, taxes, administration expenses, and distributions to beneficiaries. Pay debts in the statutory order of priority—secured debts tied to the real property are handled first, then funeral and administration costs, then other claims—subject to Maryland law and any court orders.
10. Final distribution and closing the estate
Once debts and taxes are paid and creditor claims resolved (or adequately provided for), distribute remaining assets according to the will or Maryland intestacy law. File the required final accounting with the probate court and take steps to close the estate.
Key Maryland resources
- Maryland Courts — Probate information and self‑help: https://www.mdcourts.gov/legalhelp/probate
- Maryland General Assembly (state code and statutes): https://mgaleg.maryland.gov
- Register of Wills information — contact the Register of Wills in the decedent’s county for local forms and procedures (links available from the Maryland Courts site).
Because probate practice and the precise statutory provisions differ by county and by the facts of each estate, consider consulting the Register of Wills and an attorney before starting a sale.
Disclaimer: This article is educational only and is not legal advice. It does not create an attorney‑client relationship. For legal advice about a specific estate in Maryland, consult a licensed Maryland attorney or contact your county Register of Wills.
Helpful Hints
- Get your Letters before touching estate property — they are your proof of authority.
- Hold off on distributing cash or selling assets until creditor claims and taxes are addressed.
- Obtain at least one professional appraisal to show fair market value — courts give weight to documented valuations.
- Talk to your county Register of Wills early — they can explain local filing, notice, and claim requirements.
- If the will authorizes sale, keep detailed records showing you followed its terms and acted in good faith.
- If you expect litigation or disputes among heirs, seek court approval for the sale to reduce personal liability risk.
- Work with a title company familiar with probate sales to ensure liens are cleared and closing proceeds are distributed correctly.
- Ask the closing agent for a detailed settlement statement; keep it with the estate records for your final accounting.
- Consider hiring a probate attorney for complex estates, contested sales, or significant creditor issues.