Selling A House in Probate Maryland
"Sell My Inherited House"

What is a Probate Property in Maryland?

Probate real estate in Maryland is a property that’s part of a deceased individual’s estate. This type of estate goes through the probate court system, undergoing legal processes to adequately handle the deceased’s debts and distribute their assets to the appropriate parties.

Usually, these properties come under the authority of the probate court if the property owner dies intestate—that is, without a will—or if the existing will doesn’t specify an heir. In such cases, the probate court steps in to oversee the distribution of the property.

Also, it’s worth noting that not all properties go through probate. Some assets are jointly owned or have designated beneficiaries, like a living trust. These assets avoid the potentially lengthy and costly probate process.

The Probate Process in Maryland

The probate process in Maryland is a legal procedure overseen by the Maryland Register of Wills and the Orphans’ Court. This process typically involves several steps:

The roles of the probate court: One primary role of the probate court is to legally distribute the decedent’s property and take the necessary steps to pay off any outstanding debts they might have left. The court oversees and authorizes the sale of the property in probate.

The duties of the executor: The executor of the will has the responsibility of identifying and inventorying the deceased’s property, paying debts and taxes, and then distributing the remaining estate to the decedent’s heirs or beneficiaries. If named by the decedent in their will, the executor should adhere to the decedent’s wishes about how the estate is settled.

Probate fees/costs: In Maryland, the probate process can be accompanied by a fee. These costs could include court filing fees, publication costs, and other related charges. It’s crucial to factor these costs into your financial considerations when going through the probate process.

Can a House Be Sold While in Probate in MD?

Yes, it is indeed possible to sell a house while it is still in probate in Maryland. The property cannot be sold at the discretion of the executor, though—they’ll need to obtain the court’s permission first. The probate property sale involves some specific steps:

• Step 1: Seek the probate court’s permission to sell the property.
• Step 2: Conduct a property valuation to establish a fair market price.
• Step 3: List the property for sale, bearing in mind the court-appraised value.
• Step 4: Accept a buyer’s offer, but bear in mind, the sale is not final until the court approves it.
• Step 5: Attend a confirmation hearing where interested buyers can place competing offers.
• Step 6: If all goes according to plan, the court will confirm the sale to the highest bidder, completing the selling process.

Ways to Sell a House in Probate in Maryland

Selling a house in probate involves a somewhat complex process. However, understanding the standard methods—Formal Probate Sale and Informal Probate Sale—can make the process slightly less daunting.

Formal Probate Sale

• Appoint an executor: This individual nominated in the will assumes responsibility for dealing with the decedent’s property.
• Have the property appraised: Enlist licensed appraisers to gauge the property’s current market value.
• Petition to begin the sale and listing: Apply to the Orphans’ Court for permission to sell the property.
• Court hearing and approval of sale: The court must agree to the sale. If approved, the house can be listed on the market.

Informal Probate Sale

• Appoint an executor: Same as in formal probate sale, the executor handles the responsibility for real estate transactions.
• File proper probate forms: These forms notify the court of your intent to manage the deceased’s property.
• Issuance of Letters: The court provides letters testamentary (for named executors in the will) or letters of administration (for an appointed administrator if there’s no will) making the process official.
• List the house for sale: Once the formalities have been sorted, the property can be put on the market.

How Can I Avoid Probate in Maryland?

Probate can be an overwhelming process for many property inheritors. Given that, many property owners often wish to set up their estates in ways that can avoid probate in Maryland:

• Joint Ownership: Property that is held jointly with rights of survivorship will not pass through probate; upon the owner’s death, it will pass directly to the joint owner.
• Revocable Living Trusts: Assets placed in a living trust can avoid probate since they are owned by the trust, and not by the deceased. After death, the successor trustee can distribute the assets to beneficiaries outside of probate.
• Gifts: If you don’t own it when you die, it doesn’t have to be probated. So, giving those assets away before you die will help to avoid probate.

Options for Selling Your Probate Property in MD

Are you looking to sell your probate property in MD? Here are some viable options:

• List With a Probate Real Estate Agent: Working with a probate-savvy agent can provide valuable insight into the legal processes involved.
• For Sale By Owner (FSBO): This option asks you to manage most of the selling process, from marketing to handling the closing details.
• Cash Home Buyer: Selling to cash buyers can simplify matters and offer quicker closings.

Who Buys Inherited Houses in Maryland?

There’s a spectrum of buyers who may be interested in purchasing inherited houses. Some of them are:

• Traditional Home Buyers Looking for a Bargain: Often, these buyers aim to buy the house at a lower price than the market offers, looking for a great deal on a home.
• House Flippers: These investors often buy properties “as is”, fix them up, and sell them for a profit.
• Buy and Hold Real Estate Investors: These buyers purchase properties to hold onto for longer periods, usually to rent out for a steady income.