Losing a loved one is hard enough—but when you’re left managing their estate, the process can quickly become confusing, especially when real estate is involved.
One of the most common questions we hear is:
Can a property be sold while in probate in Missouri?
The short answer is YES.
Before we go further, we would like you to think about the following phrase that relates to how one may inherit real estate or personal property: “In cash, or in kind”.
Let us explain. Let’s say you are set to inherit a house from a probate estate. You could inherit that house in two ways:
- “in cash”, meaning the home would be sold, turned into money, and you would then receive the money; or
- “in kind”, meaning you receive the thing itself – you receive the actual house.
So very similar to this concept, when it comes to real estate in a probate proceeding, there are essentially two options:
- Selling the real estate, turning it into cash, then dividing the cash among the heirs; or
- Keeping the real estate: the heirs all inherit the house together. Or another variation might possibly be that only one heir keeps the home, and the other heirs receive equivalent amounts of cash to offset the first heir’s receipt of the home, if there is enough cash to make the inheritances balance out correctly.
When it comes to selling real estate from a probate estate, there is more to it than simply listing the house and accepting an offer. In Missouri, there are important legal steps you’ll need to follow to make sure the sale is handled properly as part of the probate proceeding.
Keep reading for more information on the intersection of probate and real estate sale.
⚖️ What Is Probate in Missouri, and When is it Required?
Probate is the legal process used to settle a deceased person’s estate. This includes:
- Identifying assets
- Paying any outstanding debts or taxes
- Distributing what’s left to heirs or beneficiaries
Not all assets will need to go through probate. So how do you know what assets must go through probate? Here is the answer:
- Assets (any item with an account number, title, deed, or of great value) that are still titled into the name of the deceased party ONLY, having no co-owners, also having no beneficiary designations (Payable on Death, Transfer on Death designations) will generally need to go through probate.
In Missouri, probate is handled through the county probate court, and it’s required when someone dies with assets in their name alone, having no beneficiary designations on said assets—such as a house, land, or bank accounts.
There are many types of probate proceedings, big and small, long and short. In a full probate administration, a judge appoints a personal representative (also known as an executor) who is legally responsible for managing the estate, including the sale of property if needed.
This article is generally referring to the sale of real estate from a full probate administration, which is only one type of probate proceeding. For more information on the types of probate proceedings, please visit our page on this topic at https://ozarkslawfirm.com/different-types-probate-estates .
🏠 Can a Property Be Sold While in Probate?
Yes, a property can be sold while in probate in Missouri, but only under certain conditions.
There are two types of full probate administration in the state:
1. Independent Administration
- The Personal Representative has more flexibility to act without court permission for every decision
- The Personal Representative does NOT necessarily have the judge’s approval for all actions taken, but will generally need approval before selling real estate.
- Still must follow legal duties and keep accurate records
2. Supervised Administration
- The court oversees and approves all of the Personal Representative’s actions;
- The Personal Representative needs court approval before selling real estate;
- At the successful conclusion of the administration, the Personal Representative has comparatively far less personal liability, because the judge has approved all of the Personal Representative’s actions.
- For this reason, we tend to prefer and recommend supervised administrations.
In both types, the Personal Representative is the only person with legal authority to sell the property. That authority of the Personal Representative begins once the court issues Letters Testamentary (when there is a validly admitted Will) or Letters of Administration (if there’s no Will).
🧾 Who Can Sell the Property?
Only the court-appointed Personal Representative has the right to sell the estate’s property. It is important to note that SIMPLY BEING NAMED AS A PERSONAL REPRESENTATIVE IN A WILL DOES NOT MEAN YOU ARE THE PERSONAL REPRESENTATIVE – you have simply been nominated. You are not actually the Personal Representative until the Probate Court appoints you as such.
Once appointed, a Personal Representative has a legal duty to:
- Act in the best interest of the estate and its heirs;
- Avoid conflicts of interest;
- Avoid self dealing (doing what is best for themselves, personally); and
- Keep accurate records of the sale and how the proceeds are used;
Among many other duties. It’s important not to sign any legal documents, or agree to anything related to the sale of estate property, until you have been properly appointed by the Court as Personal Representative, and thus have the authority to take such actions.
🛠️ Steps to Selling a Property During Probate
If you’re the Personal Representative and need to sell a house or land during probate, here’s what the general process looks like in Missouri:
1. Confirm Your Authority
Make sure you’ve received your Letters Testamentary or Letters of Administration from the probate court. This legal document proves you can act on behalf of the estate. To reiterate, if you have not been formally appointed as Personal Representative by a Missouri Probate Court, then you are NOT the Personal Representative.
2. Check the Will and Heirs
If there’s a Last Will and Testament, it will need to be admitted into evidence. This is usually done when applying for Letters Testamentary. Once the Will is admitted, make sure you understand what it says, and carefully follow its instructions.
If there is no Will, Missouri’s intestate laws determine who the rightful heirs are.
In either case, heirs and beneficiaries should be notified of the intent to sell the property.
3. Appraise the Property
Get some sort of appraisal to understand the fair market value. This could involve talking with / hiring a realtor, or hiring an appraiser. DO NOT RELY ON COUNTY ASSESSOR VALUES! DO NOT RELY ON ZILLOW OR ONLINE VALUES! Knowing the true Fair Market Value is important for many reasons, including so that you have confidence that the sale price is reasonable, making sure you maximize estate funds, and using true Fair Market Value helps void disputes among heirs.
4. Work With a Probate-Savvy Real Estate Agent
Choose an agent who understands the probate process, and can set reasonable expectations for all parties. They can help list the property, manage showings, and ensure buyers understand the extra steps involved, and have reasonable expectations about how long the process will take.
5. Court Permission and Approval
Missouri probate cases generally require Court permission before listing real estate for sale, and Court approval before selling real estate out of a probate estate. If all of the heirs / beneficiaries consent, the Court will usually approve the sale without a hearing in most counties. If there is not consent from all heirs / beneficiaries, a hearing may be required in most Missouri counties.
6. Sell and Close
Once the Court has authorized and approved the sale, and there is a contract in place between buyer and seller, the closing process can begin. Proceeds from the sale go into the estate bank account — not directly to heirs — and are used to pay debts, taxes, estate costs, court costs, attorney fees, and the remainder will eventually be distributed as part of the inheritances.
⚠️ Common Challenges and Legal Considerations
Generally, if all of the heirs or beneficiaries agree and sign written consents, most Courts in Missouri will approve a Petition to Sell Real Estate without having any sort of formal hearing. If there is not unanimous consent among heirs, the Court will usually require a hearing. During this process, disputes may arise, and selling a real estate during probate isn’t always smooth. Here are a few issues that may come up:
- Disagreements among heirs about whether or not real estate should be sold (some want to sell, some want to keep);
- Disagreements among heirs about the sale price, or what realtor to use;
- Delays in court processing, there are specific probate requirements on what has to be done, how long it takes, etc.
- Unclear title issues, unexpected title issues, or outstanding liens, any of which must be resolved before closing
- Buyers backing out due to the extended timeline or court requirements; or
- Inspection surprises or issues.
Working with a probate attorney helps you avoid legal missteps, stay compliant with court rules, and protect yourself from liability. It’s also wise to consult a real estate professional who is familiar with the probate process and selling real estate out of a probate estate — in our experience, most real estate agents are not very familiar with probate.
🧑⚖️ Selling Property in Missouri Probate
It is very common for real estate or personal property to be sold by the Personal Representative of a probate estate during the course of a probate proceeding. The Personal Representative must have proper authority, must generally have proper permission from the Court, and must undertake specific steps as required by Missouri Law, and a title / closing company will generally be used in the sale.
Whether you’re the Personal Representative named in a will or just starting the probate process, it’s important to understand your responsibilities and know when to get legal help.
If you have questions about this issue, a probate attorney in Springfield, MO can help you understand the legal risks and the best path forward.
👉 Do you need help with probate or selling property through an estate? Contact Piatchek Law Firm at 417-882-5858 to speak with an experienced Missouri probate attorney and real estate attorney and get the guidance you need.
