Detailed answer — how to determine exactly where sale proceeds will go

To trace sale proceeds you need to follow the ownership chain, the title liens, and any probate or trust process that controls distribution. Below are the key steps and what to expect in North Dakota.

1. Determine how the house is owned

Title matters. Look for the deed and other documents to see whether the property is owned:

• solely in your dad’s name (likely goes through probate if no transfer-on-death or trust);
• jointly with right of survivorship (automatically passes to the surviving owner(s));
• in a revocable trust (trust terms control distribution and probate can be avoided);
• with a beneficiary deed or other transfer-on-death device (if one exists, the named beneficiary takes title at death); or
• subject to a life estate or other recorded restriction.

How to check: obtain a copy of the deed recorded at the county recorder/registrar where the property is located. The deed’s ownership language tells you whether the house passed automatically or became part of the estate.

2. Check for mortgages, liens, property taxes, and judgments

At closing, the title company or closing agent pays off secured debts from sale proceeds. Typical priorities:

1. Mortgage(s) and recorded liens (paid to clear title at sale).
2. Real estate taxes and special assessments.
3. Costs of sale (realtor commission, closing fees, title insurance, recording fees).

The closing statement (HUD-1 or Closing Disclosure) shows exactly how the gross sale price was divided and who got paid at closing.

3. If the house is part of probate, follow the probate file

When the property becomes part of a decedent’s estate, a personal representative (executor/administrator) oversees sale and distribution under North Dakota probate law. Key points:

• The personal representative has a duty to inventory assets, pay debts, and distribute the remainder in accordance with the will or the laws of intestacy.
• The personal representative typically files an inventory and may have to seek court approval for the sale or for the final accounting before distribution.
• Court filings and orders in the probate case will show how the proceeds should be distributed. You can inspect the probate file at the county court where probate was opened.

See North Dakota’s decedents’ estates statutes (Title 30.1) for the legal framework for administration and distribution: N.D.C.C. Title 30.1 — Decedents’ Estates. For practical probate guidance from the state courts, see the North Dakota Courts probate information: North Dakota Courts — Probate.

4. Understand creditor claims, family allowances, and taxes

Before distributing net sale proceeds, a personal representative must satisfy valid creditor claims and certain priority items (funeral, medical expenses, administration costs, and taxes). In some cases, a surviving spouse or minor children may be entitled to a family or homestead allowance before distribution to heirs. The exact priorities and procedures are in North Dakota probate statutes (see Title 30.1).

5. Trustee or non‑probate transfers

If your dad put the house into a living trust, the trustee follows the trust terms and does not use probate. Ask the trustee for an accounting and the trust instrument. If there is a beneficiary deed (or similar), the named beneficiary takes title and typically receives sale proceeds unless the deed directs otherwise.

6. Review the closing statement and probate accounting

Two documents will show where the proceeds actually went:

• The property sale closing statement (itemizes payoff amounts to lenders, fees, seller net).
• The personal representative’s accounting or the court’s order approving distribution in probate cases (shows creditors paid and who received distributions).

7. Practical steps you can take right now

1. Obtain the deed from the county recorder to confirm title and any recorded encumbrances.
2. Ask the listing agent or closing agent for a copy of the closing statement for the sale.
3. Contact the personal representative, executor, or trustee and request a copy of the inventory and proposed accounting.
4. Check the probate case file at the county court where your dad lived (public records) to see filings and orders.
5. If you suspect improper handling, consult a North Dakota attorney about requesting a formal accounting or petitioning the court for relief.

Hypothetical example (illustrative)

Suppose your dad died owning the house in his name alone. The property sells for $200,000. The title search shows a $100,000 mortgage and $5,000 in unpaid property taxes. Closing costs and realtor fees total $12,000. After the title company pays the mortgage and taxes and the closing agent pays sale costs, about $83,000 would remain. That net proceeds amount becomes an asset of the estate. The personal representative must pay approved creditor claims (medical bills, funeral costs) and taxes, then distribute any remaining balance under the will or North Dakota intestacy rules.

Helpful hints

• Get the closing statement: it gives immediate clarity about who received funds at sale.
• Call the county recorder to pull the deed and any recorded mortgages or liens; many counties have online searching.
• If the house was sold by a personal representative, read the probate case docket for inventories and petitions — those documents explain distribution steps.
• Ask for written payoff statements from mortgage companies and copies of lien releases — these are proof debts were paid from proceeds.
• If you’re an heir or creditor and you haven’t been told about the probate or sale, check the court file. If you were entitled to notice, you may have remedies if notice was not given properly.
• Keep records: save the deed, closing statement, probate filings, accountings, payoff letters, and any communications with the personal representative or trustee.
• When in doubt, consult a North Dakota probate or trust attorney — they can review filings and tell you whether distribution followed law and the decedent’s documents.