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When a person who owned real property in Oregon dies, the personal representative must bring that real property into the probate estate before paying creditors’ claims. Oregon law establishes clear steps to marshal real property into the estate, convert it if necessary, and satisfy valid claims.

1. File a Petition to Open Probate and Appoint a Personal Representative
   The process begins by filing a petition in the circuit court of the county where the decedent lived. The court issues Letters Testamentary or Letters of Administration once it approves the petition. See ORS 113.005 for rules on opening estates (ORS 113.005).
2. Vesting Title in the Personal Representative
   Upon qualification, the personal representative holds legal title to the decedent’s property for administration purposes. This vesting allows the representative to manage or dispose of real property. See ORS 111.125.
3. Publish and Mail Notice to Creditors
   The personal representative must publish a notice in a local newspaper and mail notice to known creditors. This step starts the statute of limitations for filing claims. See ORS 113.105.
4. Prepare an Inventory and Appraisal of Assets
   Oregon law requires filing a complete inventory of all estate assets, including real property, with the court. You must obtain a fair‐market appraisal. See ORS 114.025.
5. Obtain Court Approval to Sell or Partition Real Property
   If the estate lacks sufficient liquid assets to pay claims, the personal representative may petition the court to sell or partition the real property. The court reviews the petition, ensures notice to interested parties, and issues an order. See ORS 113.255.
6. Record the Probate Deed or Sale Documents
   After the sale, the personal representative must record the probate deed or other conveyance instruments at the county recorder’s office. This step transfers title to the buyer and finalizes the sale. See ORS 93.761.
7. Pay Creditors from Sale Proceeds
   Once property converts to cash, the personal representative pays valid claims in the order set by Oregon law. First come costs of administration and funeral expenses, then secured and unsecured claims. See ORS 115.015.

Helpful Hints

• Work with a licensed real estate appraiser to establish fair market value.
• Search title records for liens or mortgages before petitioning to sell.
• Notify all heirs and beneficiaries when seeking court approval to sell.
• Keep detailed records of all notices, appraisals, and court filings.
• Allow time for the creditor notice period to expire before distributing assets.
• Consider hiring a probate attorney to navigate complex sales or disputes.

Disclaimer: This article is for educational purposes only. It does not constitute legal advice. Consult a qualified attorney to address your specific situation.