How to Sell a House During Probate in Alabama?

Hey there! If you’re knee-deep in Alabama probate and need to sell a loved one’s home, you’ve come to the right place. Most guides rehash the same basics—but I’ve dug into local loopholes, court quirks, and tax tricks others skip. Let’s break it down plainly, with steps you won’t find elsewhere.

Step 1: Appoint an Executor or Administrator

• If there’s a will: The named executor files for Letters Testamentary at your county probate court (e.g., Jefferson County for Birmingham).
• No will? The court appoints an administrator (usually the spouse or adult child) under Alabama’s intestacy laws (Code § 43-2-42).
• Pro Tip: Skip delays by filing paperwork online in counties like Madison or Mobile.

What Others Miss:
Even if you’re the executor, Alabama requires a surety bond (1-5% of the estate value) unless the will waives it. Budget for this!

Step 2: Decide Why You’re Selling (It Changes Everything)

• To Pay Debts: Requires a public auction (Alabama Code § 43-2-450). Think courthouse steps or online bidding.
• To Divide Among Heirs: Can petition for a private sale if all adult heirs agree (Code § 43-2-443). Faster, but you’ll need court approval.

Local Example:
Selling Mom’s Huntsville home to split cash? Push for a private sale. Selling to cover her hospital bills? Public auction is mandatory.

Step 3: File the Petition (and Dodge Common Mistakes)

1. Gather Docs:
   • For debts: List all creditors (e.g., mortgages, credit cards).
   • For division: Get a certified appraisal (Alabama requires this).
2. File in Probate Court: Use Form PC-400 in counties like Baldwin or Tuscaloosa.
3. Notify Heirs:
   • Serve notice personally or publish in a local paper (e.g., The Birmingham News).
   • Minors or disabled heirs? The court appoints a guardian ad litem to protect their interests.

Most guides don’t mention Alabama’s 30-day waiting period after filing. Use this time to prep the house for sale!

Step 4: Court Hearing & Sale Approval

• Hearing Date: Set at least 30 days post-filing (Code § 43-2-445).
• Judge’s Questions:
  • “Is the sale necessary?” (Show repair estimates or unpaid bills.)
  • “Is the price fair?” (Bring the appraisal!)
• Court Order: Specifies public/private sale and minimum price.

Red Flag: In counties like Montgomery, judges often require a public sale for debt payment. Push for a private sale only if heirs unanimously agree.

Related article for you:
Can I Sell My House in Probate in Columbia? Here’s What You Need to Know

Step 5: Sell the House (Public vs. Private)

• Public Auction:
  • Held at the courthouse or online.
  • Alabama Quirk: Bidders must pay 10% cash day-of.
• Private Sale:
  • Hire a realtor experienced in probate (ask: “Have you closed a court-confirmed sale?”).
  • List at or above appraised value.

Tax Hack:
Heirs get a step-up in basis (IRS Section 1014). Sell within a year to lock in the “date of death” value and dodge capital gains taxes.

Step 6: Court Confirmation & Payout

• File a Sale Report: Within 10 days of closing (Code § 43-2-462).
• Judge’s Final Check: Confirms the price was fair and process legal.
• Pay Debts First: Credit cards, mortgages, then taxes.
• Distribute Leftovers: Follow the will or Alabama’s intestacy rules (spouse/kids get priority).

Unexpected Snag:
Buyers sometimes back out post-confirmation. Protect yourself with a non-refundable deposit (5-10%) in the contract.

3 Alabama-Specific Pitfalls (and Fixes)

1. Homestead Exemption Lapse:
   • Notify the county tax assessor ASAP to avoid back taxes.
2. Heir Disputes:
   • Mediate early with the Alabama Center for Dispute Resolution (cheaper than court battles).
3. Seasonal Wear-and-Tear:
   • Alabama’s humidity warps floors and breeds mold. Budget for pre-sale repairs.

Local Resources You’ll Actually Use

• Jefferson County Probate Court: (205) 325-5500 | Forms & Fees
• Low-Cost Legal Help:
  • Alabama Legal Services: (888) 457-2954 (free for qualifying families).
  • UA Law Clinic: Free probate help in Tuscaloosa.
• Title Companies:
  • TitleSouth (Birmingham) or Proficient Title (Mobile) handle probate closings daily.

FAQs (From Real Alabamians)

Can I sell before probate ends?

Yes, but the deed can’t transfer until the court confirms the sale.

My brother is contesting the sale. Now what?

The judge pauses everything. Push for mediation—it’s faster than a trial.

How long does this take?

4-8 months if smooth. With fights? Over a year.

The Shortcut Nobody Tells You About

Use summary probate if the estate is small (under $25k in non-house assets). File Form PC-50 to skip formal proceedings.

Final Words

Selling a house during Alabama probate is like heading down a backroad without GPS—doable, but you need local know-how. Follow these steps, lean on Alabama-specific resources, and always consult a probate attorney for curveballs.

Need a Pro?

• Alabama State Bar Referral: (800) 392-5660
• Flat-Fee Attorneys: Search “Alabama probate attorney flat fee” to avoid hourly surprises.