Texas: How to Get Court Approval to Sell a House and Pay Off the Mortgage

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney. See full disclaimer.

Detailed Answer

Short summary: If a court must authorize the sale of a house in Texas, the process depends on why the court must approve the sale (probate administration of a decedent’s estate, a guardianship for an incapacitated owner, a divorce property order, or a bankruptcy). The common steps are: identify the legal basis for court control, file a petition asking the court for authority to sell, notify interested parties, get a court order authorizing the sale, close with a payoff of the mortgage, and file the closing documents and accounting with the court. Below is a practical, step‑by‑step explanation tailored to Texas procedures and what you will need to do at each stage.

When court approval is required (typical Texas situations)

  • Probate (decedent’s estate): If the property is part of a probate estate and the personal representative does not have independent authority to sell, the executor/administrator must ask the probate court for permission.
  • Independent administration vs. dependent administration: An appointed independent executor may sell estate property under the authority granted by the will or by statute; otherwise, the court must sign an order. See Texas rules on independent administration for details (court rules and statutes apply). Helpful overview: Texas Judicial Branch — Probate.
  • Guardianship (incapacitated person): If a guardian manages the ward’s estate, the guardian usually needs court permission to sell real estate owned by the ward unless the guardianship order already allows sales.
  • Divorce or family court matters: Property division orders often control whether a sale requires a court order or can be accomplished by agreement between the parties.
  • Bankruptcy: Bankruptcy court approval may be required to sell estate property if the property is property of the bankruptcy estate.

Step-by-step process under Texas law

1. Identify the legal status of the property and the reason court approval is required

Ask: Is the property in someone’s sole name? Is it part of a probate estate? Is a guardian in place? Is the property homestead or community property? These facts determine which court and which rules apply. Texas probate and guardianship procedures are administered through the local county probate court (often the county court at law or statutory probate court).

2. Confirm whether independent authority exists

Some executors or guardians have express power to sell real property without a separate order. Check the will, the letters testamentary/letters of administration, or the guardianship order. If independent authority exists you may only need to provide required notice and follow statutory sale procedures. For an overview of probate and administration practice, see Texas Judicial Branch — Probate.

3. Prepare and file a petition or application to sell

If you lack independent authority, file a written petition to sell (sometimes called an application for sale of real estate) in the court handling the estate or guardianship. The petition typically explains why the sale is necessary or in the estate/ward’s best interest, describes the property, shows the mortgage balance or liens, and requests the court to authorize the sale and specify terms (e.g., minimum bid, sale at private sale or public auction, how mortgage payoff will be handled).

4. Provide notice to interested parties

The court will require notice to heirs, beneficiaries, the ward (if applicable), creditors, and other interested parties. The notice may require a set period (often at least 10–20 days depending on local rules) before the hearing. The court may also require published notice if heirs or creditors are unknown.

5. Obtain appraisals or valuation (if required)

Some courts require an appraisal or written valuation to confirm the sale price is fair and to protect beneficiaries and creditors. If appraisal is required, order a certified appraisal.

6. Attend the court hearing and obtain a written order

Attend the hearing. The court will review the petition, any objections, and the proposed sale terms. If the judge approves, the court will sign an order authorizing the sale and describing any conditions (e.g., minimum price, bid procedures, how proceeds will be held or distributed, requirement to pay off liens at closing, or to file an accounting after closing).

7. Execute the sale and handle mortgage payoff at closing

At closing, you will use the court order as authority to sign documents for the sale. Obtain a mortgage payoff statement from the lender showing an exact payoff amount and effective payoff date. The payoff is paid from sale proceeds through the closing agent or escrow. After payoff, obtain a mortgage release or satisfaction from the lender and record it at the county clerk’s office.

8. File closing documents and an accounting with the court

After closing, file the deed, closing statement (HUD-1 or Closing Disclosure), receipt for mortgage payoff, and a final accounting or report to the court. The court will usually require this to close out the transaction and to allow distribution of remaining proceeds to heirs, creditors, or a beneficiary.

Common documents you will need

  • Petition/Application to Sell Real Property
  • Letters Testamentary or Letters of Guardianship (showing your authority)
  • Notice of Hearing and proof of service
  • Appraisal or market valuation (if required)
  • Court order authorizing sale
  • Payoff statement from the mortgage lender
  • Closing statement and deed
  • Recorded mortgage release/satisfaction
  • Accounting/report to the court showing distributions

Mortgage payoff technical points

  • Get a written payoff quote with an expiration date and exact amount. Lenders often include per‑diem interest and early payment items.
  • Use the court order at closing so the title company will allow payoff from sale proceeds. The order should authorize payment of liens and the person authorized to sign payoff checks.
  • Record the mortgage release (or satisfaction) immediately after closing. Without a recorded release, the lien may appear on title searches and complicate future transfers.
  • If the sale proceeds do not cover the mortgage, the court may permit a short sale with lender consent, or require the estate/ward to make up the shortfall. Get lender approval for any short sale terms in writing.

Timing and likely costs

The timeline depends on the court’s calendar and whether notice or an appraisal is required. Expect several weeks to a few months from filing to court order in straightforward cases. Costs include filing fees, notice costs, appraisal fees, title or closing fees, and possible bond requirements or attorney fees. If the court requires a bond for the personal representative or guardian, the court order will address how that bond is satisfied.

When to hire an attorney

Hire an attorney if:

  • Heirs or beneficiaries object to the sale.
  • There are multiple liens, tax issues, or complex title problems.
  • You face a short sale, or the mortgage lender is uncooperative.
  • It is a guardianship or contested probate matter with potential challenges to your authority.

An attorney experienced with Texas probate, guardianship, and real estate closings can prepare the petition, represent you at the hearing, and coordinate closing and recordation steps so the mortgage payoff complies with the court’s order.

Statutes and helpful Texas resources

  • Texas Judicial Branch — Probate and guardianship information: https://www.txcourts.gov/programs-services/probate/
  • Texas Statutes (Capitol website) — search the Estates Code for rules about administration and guardianship; use this portal to access the Estates Code chapters that apply to independent administration and guardianship: https://statutes.capitol.texas.gov/
  • County clerk or probate court website — local forms, filing fees, and hearing procedures vary by county. Check your county’s court or clerk website for local probate/guardianship procedures and forms.

Practical checklist (quick reference)

  1. Confirm the reason court approval is needed (probate, guardianship, divorce, bankruptcy).
  2. Collect documents that show your authority (will, letters, guardianship order).
  3. Obtain a mortgage payoff statement.
  4. Prepare and file the petition to sell with the court; serve required notices.
  5. Get an appraisal if required.
  6. Attend the hearing and obtain a written court order authorizing the sale.
  7. Close the sale, pay off the mortgage via closing agent, and get the lien released and recorded.
  8. File closing documents and accounting with the court to complete the process.

Helpful Hints

  • Always get a written mortgage payoff with a firm expiration date before scheduling closing.
  • Keep records: file all court orders, notices served, closing statements, and recorded documents in the court file and your personal file.
  • Talk to the title company early. They will tell you what documentation and signed orders they need to remove liens and issue clear title.
  • If you expect objections from heirs or creditors, consider mediation or settlement talks before the hearing to avoid delay and extra cost.
  • Be precise in your petition: courts grant authority based on the requested terms. If you want the ability to accept a range of offers or sell at private sale, request that flexibility in your petition and order.
  • If the house is a homestead or subject to special Texas homestead protections, bring that to the court’s attention; homestead issues can change the court’s approach to sale and distribution.
  • Budget for unexpected costs: unpaid property taxes, HOA dues, repairs required by title, or mortgage prepayment penalties can reduce net proceeds.

Disclaimer: This article explains general Texas procedures and is for informational purposes only. It is not legal advice and does not create an attorney‑client relationship. Laws and local court rules change. For advice about your specific situation, consult a licensed Texas attorney familiar with probate, guardianship, family law, or bankruptcy as appropriate.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney. See full disclaimer.