Detailed answer — what you must do under Oregon law

When you want to sell a deceased parent’s home, you must make sure creditor claims and liens are handled so the sale transfers clear title. In Oregon, most of this work falls to the personal representative (executor) appointed by the court or the person otherwise authorized to handle the decedent’s property.

1. Determine whether probate is required and who has authority

First determine how title to the home passes. If the home passed automatically (for example, by joint tenancy, transfer-on-death deed, or beneficiary designation), probate may not be necessary. If the decedent left a will or the house is solely in their name, you will usually open probate and the court will appoint a personal representative who has authority to administer the estate and sell estate assets under Oregon probate rules. See Oregon probate statutes for procedures: ORS Chapter 115 (Probate Procedure) and summary procedures for small estates: ORS Chapter 116 (Summary Administration / Small Estates).

2. Open probate (if needed) and get letters of authority

If probate is required, file the necessary petition in the county probate court, have the will admitted (if there is one), and obtain court-issued letters testamentary or letters of administration. Those letters formally give the personal representative authority to act for the estate, including selling real property when authorized by the will or by court order.

3. Identify estate creditors and publish notice to creditors

The personal representative must identify known creditors and provide notice to them. Oregon law also requires a public notice to creditors so unknown creditors have an opportunity to file claims against the estate. These notice requirements create the time window when creditors can present claims against estate assets. The procedures and timelines for presenting claims are governed by Oregon probate statutes; see ORS Chapter 115.

4. Inventory assets and perform a title search

Prepare an inventory of estate assets, including the home, and order a title search. The title search reveals recorded liens, mortgages, tax liens, judgments, and other encumbrances that must be satisfied or cleared before a buyer can obtain marketable title. If you find recorded liens, obtain payoff statements and identify steps to remove or subordinate those liens at closing.

5. Review, allow or dispute creditor claims

When creditors submit claims, you must evaluate each claim. Valid claims are paid from estate assets before distributions to heirs. If a claim is disputed, the personal representative can reject it and, if necessary, defend the rejection in probate court. Keep written records of acceptance, partial allowance, or disallowance of claims. The statutory rules that govern filing and handling claims appear in the Oregon probate statutes: ORS Chapter 115.

6. Decide whether to sell the home before or after paying creditors

Often the estate sells the home to pay debts and distribute net proceeds. The personal representative may be able to sell the property using authority granted in the will or by probate court order. If a sale is necessary to pay debts, the court can approve the sale and the distribution plan. If creditors remain unpaid, the buyer or title company will require payoff of recorded liens at closing. Unfiled or undiscovered creditor claims may surface later; timely creditor notice and proper handling reduce that risk.

7. Obtain court approval when required

If the personal representative’s authority is limited, or if you need to sell property before all claims are resolved, you may need a court order authorizing sale. The court’s approval also protects the personal representative from later creditor claims about the sale process. Consult the probate court clerk or an attorney to determine whether you need a specific court order for the sale.

8. Pay allowed debts and get lien releases

Before or at closing, pay allowed claims secured by recorded liens (mortgages, judgment liens, tax liens). Obtain written payoff statements and recorded lien releases. For unsecured creditors, pay from the estate’s funds according to priority rules and the estate’s ability to pay. Keep detailed accounting for the court and heirs.

9. Close the sale, distribute proceeds, and file final account

After closing, use the sale proceeds to pay selling costs, taxes, allowed creditor claims, and administrative expenses. Then distribute any remainder to beneficiaries under the will or by intestate succession. File a final accounting or petition for distribution with the probate court and request discharge of the personal representative when appropriate.

10. Protect the buyer and clear title for transfer

Buyers typically require title insurance showing clear title or agreed title exceptions. Clearing recorded liens and furnishing a court order authorizing sale (when necessary) will allow the title company to issue insurance and complete the sale.

Common statutory references for Oregon probate and creditor claims

• ORS Chapter 115 — Probate procedure (claims against estates; probate administration)
• ORS Chapter 116 — Summary procedures and small estates
• Oregon Judicial Department — probate information and local court forms: Oregon Courts: Probate

Note: statutes contain the specific procedural steps and deadlines for presenting claims and for notices to creditors. If you need exact filing deadlines or precise statutory language, review the cited ORS chapters or consult an Oregon probate attorney.

Helpful Hints

• Start the process early. Open probate and publish creditor notice promptly to limit late claims.
• Send certified mail to known creditors and keep copies of all notices and responses.
• Order a professional title search and get payoff amounts for each recorded lien before listing the home for sale.
• Talk with the probate court clerk about local court forms and procedures for authorizing a sale.
• Consider asking the court to approve a sale and disbursement plan to protect the personal representative from later disputes.
• Keep a full record of inventories, claims, notices, payments, and communications with creditors and beneficiaries.
• If the estate is small, review summary procedures under ORS Chapter 116 to see if you can avoid formal probate.
• Buyers and title companies may require lien releases or a certified copy of court orders; plan for time to obtain these documents before closing.
• If a creditor threatens foreclosure or a judgment lien exists, contact an attorney quickly to protect estate assets.
• When in doubt, consult a probate attorney. Probate law and creditor-deadline rules can be technical and time-sensitive.