Selling an Inherited, Trust or Divorce Home in Texas

Can I sell a house I inherited in Dallas?

Yes, once the right person has authority to sign. That depends on whether there was a will, whether there are debts, and how many heirs there are. A Texas probate attorney decides which path fits, and the title company decides what it will insure.

The usual paths:

• Probate with an executor or administrator, appointed by the court, who signs the deed for the estate.
• Muniment of title, a simpler probate route where the court admits the will to transfer title without appointing an executor. It generally fits when there is a valid will and no unpaid debts other than those secured by real estate.
• Affidavit of heirship, used when there is no will, to record who the heirs are. The title company decides whether to accept it, and it may require every heir to sign the deed.

How do I sell my parents' home in Dallas?

If your parents are living, they sign, or someone signs for them under a valid power of attorney that the title company accepts. If a parent can no longer sign and there is no power of attorney, a court may need to appoint a guardian, which is a question for an attorney.

If your parents have died, the steps for an inherited home apply. In both cases, the practical work is the same:

1. Find the deed, the will or trust, the mortgage statement and the insurance policy.
2. Keep the utilities on and tell the insurer if the house is vacant.
3. Decide what to keep, donate and sell from the contents.
4. Decide whether to sell as-is or make repairs.
5. Get a pricing review so the family agrees on a number. See what your home is worth.

Can I sell a house that's held in a trust?

Yes. The trustee signs the contract and the deed on behalf of the trust, within the powers the trust gives. With a living trust, the owner is often the trustee and signs in that role. After the owner dies, the successor trustee named in the trust signs.

The title company will usually ask for a certification of trust or the pages showing who the trustee is and their power to sell. If the trust is unclear or beneficiaries disagree, involve the trust's attorney before listing.

How does selling a house during a divorce work in Texas?

Usually both spouses sign. Texas is a community property state, so a home bought during the marriage is presumed to belong to both. And if the house is the family's homestead, Texas law generally requires both spouses to sign to sell it, even when only one name is on the deed.

The common options are selling before the divorce is final with both agreeing, selling after under the terms of the decree, or one spouse buying out the other. Many Texas counties have standing orders that limit selling property while a divorce is pending, so each spouse should talk to a family lawyer before listing.

On the practical side, I keep communication equal and in writing with both spouses, and every offer goes to both. Agree in advance on the list price, who handles showings, how repairs are paid for and how the proceeds are held until the decree divides them. Your lawyers can tell you whether the proceeds should be held in escrow until then.

What will the title company need before closing?

The title company needs proof that the person signing can sell, plus the usual payoff and tax information. Gather these early, because missing papers are the most common reason these closings slip:

• The current deed and any mortgage or home equity statements.
• For an estate: the will, the death certificate and the court order or affidavit the attorney prepares.
• For a trust: the certification of trust or the trust pages naming the trustee and the power to sell.
• For a divorce: the decree or the written agreement, and any court order about the house.
• A power of attorney, if someone signs for an owner, approved by the title company ahead of time.
• Recent property tax statements and any HOA contact information.

Taxes on the sale differ in each of these situations. An heir, a trust and a divorcing couple can each owe a different amount on the same price, so ask a CPA before you list.

How do I prepare an estate home for sale?

Protect the house first, then decide how much to do to it. A vacant house needs insurance that covers vacancy, utilities left on, and regular checks for leaks and break-ins.

Then choose between selling as-is and preparing it. As-is is faster and keeps the family out of contractor decisions. Preparing it, even just clearing, cleaning, paint and yard work, often brings more buyers.

When several heirs are involved, agree on the decisions in writing: who speaks for the family, how offers are approved and how costs are shared. It keeps the sale moving when people live in different cities, and every heir can sign electronically for most steps before closing.

Should I keep the old house and rent it out instead?

Keep it only if the rent covers the real costs and you want to be a landlord, or have a property manager. Heirs and move-up sellers often consider it. Count everything:

• Mortgage, if any, and its occupancy terms.
• Property taxes without a homestead exemption, which ends when it is no longer your principal residence.
• Landlord insurance, repairs, vacancy and management.
• How renting changes the tax on a later sale, which a CPA can explain.

The GPS Group works with investment property too. See luxury and investment.