Can You Sell a House in Fort Worth, Texas, During Probate? Step-by-Step Guide
Yes, you can sell a house in Fort Worth during probate, but it requires court supervision unless the will grants the executor direct authority. According to Texas Estates Code § 356.451, executors may sell real estate if it’s in the estate’s best interest, such as covering debts or preventing property depreciation.
If you’ve inherited a home in probate—whether a Craftsman in Fairmount or a ranch in Benbrook—understanding Texas law can be tricky. Tarrant County has strict probate procedures, and mistakes can lead to delays, disputes, and tax implications. This guide breaks down the local probate sales process, common pitfalls, and solutions to ensure a smooth transaction.
Table of Contents
Understanding Texas Probate Laws for Home Sales
Selling a house during probate in Texas is legal, but you must follow state and county regulations.
Key Probate Requirements in Tarrant County
- Court Approval or Executor Authority: Executors can sell property only if authorized by the will or the court.
- Required Filings:
- Motion to Sell Real Property (Form C-1-5) filed with Tarrant County Probate Court.
- Inventory Submission (Form CI-1) within 90 days of executor appointment (Texas Estates Code § 256.153).
Tax Considerations
- No Texas Inheritance Tax, but federal estate tax applies to estates exceeding $13.61 million (2024 threshold).
- Capital Gains Taxes: IRS “step-up in basis” rule means taxes apply only to appreciation post-owner’s death, not the original purchase price.
Probate Timeline in Tarrant County
- Letters Testamentary Issued: Typically within 2–4 weeks if uncontested.
- Court Hearing Delays: Average wait time is 60–90 days (2023 data).
How to Sell a Fort Worth House in Probate: 6 Steps
Step 1: Open Probate in Tarrant County
- No Will? File for administration under Texas Estates Code § 401.002.
- Cost Breakdown:
- $450 filing fee
- $200–$500 for required newspaper publication (e.g., Fort Worth Star-Telegram)
Step 2: Obtain Executor Authority
- Independent Administration: If the will grants a “power of sale” clause, the executor can sell without court approval.
- Dependent Administration: Court must approve each sale step, common in contested estates.
Step 3: Resolve Heir Disputes
- Disputes? Mediation at Tarrant County Dispute Resolution Center can reduce delays by 30–60 days.
- No Agreement? The court intervenes under Texas Estates Code § 355.109.
Step 4: Set a Competitive Price for the Fort Worth Market
- Fairmount (76107): Average sale price $450K (2023), historic homes command a 10% premium.
- Benbrook (76126): Median home price $350K; marketing to families ensures quicker sales.
Step 5: Clear Title Issues
- Common Problem: Unpaid property tax liens (Tarrant County average: 2.1% of home value).
- Solution: Work with local title companies like Lone Star Title to resolve issues before listing.
Step 6: Finalize the Sale and Distribute Funds
- After Closing: Submit a Final Accounting (Form C-3-4) to Tarrant County Probate Court.
- Heir Payouts: Distribute funds via check or wire, retaining 10% for remaining estate debts.
Related article for you:
Why Would an Executor Delay Probate? 7 Common Reasons (and How to Fix It)
Additional Considerations for Probate Sales
1. Renting the Property During Probate
- Option: Lease the home (e.g., to TCU students) to offset taxes and mortgage costs.
- Risk: Liability insurance required; consider hiring a local property manager like Williams Trew.
2. Managing Multiple Estate Properties
- Strategy: Sell one property (e.g., a Benbrook home) to settle estate debts, then distribute other assets.
- Tax Benefit: Use a Qualified Personal Residence Trust (QPRT) for secondary properties to reduce estate tax liability.
3. Post-Sale Responsibilities
- For Large Estates: File IRS Form 706 if the estate exceeds $13.61 million.
- Final Probate Step: Submit Closing Statement (Form C-3-3) to formally settle the estate.
Local Fort Worth Probate Resources
- Tarrant County Probate Court: (817) 884-1625 | Forms
- Mediation Services: Tarrant County Dispute Resolution Center
- Realtors® Specializing in Probate Sales:
- Luxury Homes: Allie Beth Allman & Associates
- Probate Specialists: Keller Williams Heritage
FAQs
Can I sell if the home has a reverse mortgage?
Yes, but the loan must be repaid first, a common scenario in neighborhoods like Walsh Ranch (76116).
What happens if the executor dies during probate?
The court appoints a successor executor under Texas Estates Code § 361.003 (process takes 4–8 weeks in Tarrant County).
Are probate home sales public auctions?
Rarely. Most are private sales, but courts prefer offers at or above 90% of the appraised value.
Final Thoughts
Selling a home in probate is a complex process, requiring careful execution of Tarrant County’s legal and tax rules. Avoid common pitfalls such as heir disputes, title defects, and IRS complications by working with experienced probate attorneys (e.g., Deans & Lyons) and real estate professionals. With the right guidance, you can turn a challenging situation into a successful sale.