Detailed Answer

Start by identifying how the property is owned. Ownership controls where the sale proceeds will go. In Texas the main possibilities are:

• Joint ownership with right of survivorship (e.g., joint tenants): If your dad held the property jointly with another person and the deed shows a right of survivorship, the surviving joint owner automatically owns the property when your dad died. The sale proceeds will go to that surviving owner.
• Transfer-on-Death (TOD) deed: Texas allows a transfer-on-death deed for real property. If your dad recorded a TOD deed naming a beneficiary, that beneficiary receives the property automatically at death, and sale proceeds belong to that beneficiary.
• Trust ownership: If the house was owned by a living trust, the trustee controls the property and will follow the trust terms. The trustee will distribute sale proceeds according to the trust document.
• Owned individually (part of the estate): If the house was in your dad’s name alone and no automatic transfer device applies, the property will typically become part of his probate estate. The executor or administrator must sell or transfer the property, pay debts and expenses, and then distribute any remaining proceeds to heirs or beneficiaries under the will or under Texas intestacy rules if there is no valid will.
• Liens and mortgages: Any outstanding mortgage, deed of trust, tax lien, or other recorded lien must be paid from the sale proceeds at closing. Title companies run a title search to identify and clear liens so they can prepare a payoff demand and a closing statement showing exactly how proceeds will be split.

How to confirm which situation applies and to get an exact accounting:

1. Search the deed and title records: The county clerk or county recorder’s office where the house is located keeps the deed records online or at their office. The recorded deed will show the legal owners and any recorded TOD deed or survivorship language. A title company can do a complete title search and produce a report showing ownership, easements, mortgages, and other liens.
2. Look for a will, trust, or TOD deed: Check whether your dad left a will or trust. If a will has been submitted to probate, the county probate court will have a case file. Ask the person who handled your dad’s affairs (an attorney, safe-deposit company, or personal papers) for these documents. If a trust exists, the trustee has authority to manage and sell the house and to give an accounting of proceeds.
3. Check whether the estate is in probate: If the property is part of the probate estate, the executor (personal representative) or administrator will obtain letters testamentary or letters of administration from the probate court. These letters authorize the representative to act. The probate file and any inventory and appraisement, creditor claim listings, and accountings are public records in the county courthouse and show how estate assets (including sale proceeds) will be distributed.
4. Request a payoff and closing statement: When a sale is pending, the title company or closing agent prepares a closing disclosure/HUD-1-style statement showing the gross sale price, amounts paid off at closing (mortgages, liens, property taxes, commissions), seller-side closing costs, and the net proceeds. Ask for this statement before closing to see exactly where funds will go.
5. Confirm liens and taxes: Contact the county tax office (for unpaid property taxes) and the county clerk’s office (for recorded liens) if you suspect unpaid obligations. Federal and state income tax issues may affect net proceeds; consult a tax professional if needed.
6. Get copies of court documents if you suspect probate is required: If no transferral device (joint ownership/TOD/trust) exists, the property normally clears title through probate. Obtain a copy of the probate petition, orders appointing the representative, and any accountings. Those documents explain how and to whom distributions may be made.
7. Hire a title company or closing agent: A licensed title company can produce a title commitment and an itemized settlement statement that demonstrates exactly how proceeds will be applied at closing. That is the clearest, standardized accounting you will get for a real estate sale.
8. When there is a dispute: If heirs or potential recipients disagree about distribution or if ownership is unclear, talk to a Texas probate or real property attorney to consider filing a declaratory judgment or other appropriate action in probate court to resolve ownership and distribution questions.

Who to contact and what to ask:

• County clerk / county recorder: Ask for the recorded deed(s) and any recorded transfer-on-death deed.
• Title company or closing agent: Request a full title search, title commitment, and proposed closing statement.
• Probate court clerk: Ask whether a probate case for your dad has been opened and request copies of filed documents.
• Executor/trustee/administrator: Request copies of letters testamentary or letters of administration, the estate’s inventory, creditor lists, and any proposed distributions.
• Real estate closing attorney: Request the seller’s closing disclosure to confirm payoff amounts and net distributions.

Note about protections under Texas law: Texas recognizes homestead protections and certain family allowances that can affect how estate assets are applied to debts and how surviving spouses and minor children are treated. If the property qualifies as a homestead or family allowance applies, that can change distribution priorities. These protections are specific and fact-dependent—check with the probate court or an attorney for how they apply.

Helpful Hints

• Obtain a certified copy of the death certificate early—title companies, banks, and the county often require it.
• Get the recorded deed from the county clerk to see exact ownership language. If you see words like “with right of survivorship” or a TOD designation, that likely decides who gets proceeds.
• Hire a title company for a title search. The title commitment spells out mortgages and liens the sale must pay off.
• Ask the closing agent for the seller’s closing disclosure (or HUD-1). That document itemizes who receives every dollar at closing.
• If the house is in a trust, ask the trustee for a copy of the trust and an accounting; trustees are generally required to follow the trust terms and to account for receipts and distributions.
• If you cannot find a will or trust and you suspect probate is necessary, contact the probate court clerk in the county where the property is located for records and filing information.
• Keep communications in writing (email or certified mail) when you request documents or accountings from executors, trustees, or title companies; written requests create a record if disputes arise.
• If multiple heirs claim a share and you cannot resolve it, speak with a probate attorney. Timely legal advice can prevent costly mistakes or missed deadlines.