How an executor in Alabama can sell real property to pay estate debts

Disclaimer: This is general information, not legal advice. I am not a lawyer. For decisions that affect your legal rights, consult a licensed Alabama attorney or the probate court handling the estate.

Detailed answer — step-by-step explanation under Alabama law

When you are the personal representative (executor or administrator) of an Alabama estate and need to sell real property to pay the estate’s debts, you must follow probate procedures. Below is a practical, step-by-step outline of the typical process under Alabama probate practice and statute (see Alabama probate code references at the end):

1. Confirm your authority

First, confirm that you have been formally appointed by the probate court as the personal representative and that the appointment order is in the court file. If the decedent left a will, the will often gives the personal representative authority to sell property. If the will does not, or if there is no will, you generally must obtain court approval before selling real property. The probate judge’s appointment order and local court rules determine what you can do without further approval.

2. Inventory and evaluate estate assets

Prepare an inventory listing all estate assets, including real property. Obtain a current market valuation or appraisal of the real property you may sell. Lenders, buyers, and the court will expect an accurate value when considering sale and distribution of proceeds.

3. Identify and prioritize creditors and claims

Determine the estate’s debts and the proper order of payment (administrative expenses, funeral expenses, taxes, secured debts such as mortgages, unsecured creditors, then distributions to beneficiaries). Follow the probate court’s notice and creditor-claim procedures so claims are filed and resolved according to Alabama practice. You may need to publish notice to creditors if required by the probate court.

4. Decide whether you can sell without prior court approval

If the will expressly authorizes the personal representative to sell estate real property, that grant of power (together with the probate appointment) may allow you to market and sell property without a separate sale hearing. If the will is silent or there is no will, or if the beneficiaries object, you generally must petition the probate court for authority to sell. Even when the will gives authority, the court may require notice to beneficiaries or creditors or a confirmation hearing depending on the circumstances.

5. File a petition or motion in probate court when required

If the probate court’s approval is required, file a petition asking the court to authorize the sale. The petition should explain why the sale is needed to pay debts, identify the property, show the proposed sale terms (e.g., list price or bidding procedure), and attach the appraisal or valuation. The court will set any required hearings and may direct how the sale will be conducted.

6. Give required notices and follow sale procedures

The probate court or statute may require notice to beneficiaries, heirs, and creditors before the sale. The court may also specify sale procedures: public auction, private sale with confirmation, or other methods. If property is subject to a mortgage or other lien, you may need to obtain payoff information and may have to address the lien as part of the sale.

7. Execute the sale and handle proceeds

Once the sale is authorized and completed, deposit sale proceeds in the estate bank account. Use those funds to pay allowed and timely claims in the legal priority order, pay administrative expenses (including commissions and closing costs), satisfy liens, and then distribute any remaining balance to beneficiaries per the will or intestacy rules. Keep detailed records and receipts.

8. Account to the probate court and seek final discharge

Prepare and file the required estate accountings and reports with the probate court showing how sale proceeds were used. When the court approves the accounting and all claims are resolved, the court can discharge you as personal representative and close the estate.

Key practical considerations for Alabama executors

Mortgages and liens: Secured debts remain attached to the property until they are paid or otherwise dealt with. You may need to obtain payoff statements and handle lien releases at closing.
Homestead and family allowances: Alabama law protects certain family and homestead rights of the surviving spouse and minor children. Those rights can affect whether a property may be sold and how sale proceeds are applied.
Beneficiary objections: If a beneficiary objects to a sale, the court may require a hearing and make a determination balancing creditor claims and beneficiary interests.
Timing: Selling property can take longer than other estate work because of appraisal, marketing, court hearings, and the probate creditor-claim period. Plan cash flow for estate obligations accordingly.
Tax consequences: Selling estate property can create income tax or estate tax considerations. Coordinate with a tax professional as needed.

Where to find Alabama statutes and local court guidance

Alabama’s probate rules and statutes are found in Title 43 (Probate) of the Code of Alabama. For the text of the probate code and to search specific sections, you can consult the Alabama Legislature’s code resources:

Alabama Code of 1975 — Table of Contents (including Title 43, Probate)

For local forms and court procedures, contact the probate court in the Alabama county where the estate is being administered. The Alabama Judicial System website also provides general courts information at judicial.alabama.gov.

Helpful hints

Obtain a court-signed letters of appointment before taking any action involving estate property.
Get a professional appraisal for real property that the estate will sell — the probate court and buyers value a current written appraisal.
Document every step: inventories, notices served, appraisals received, and distributions made — you will later account to the court.
Communicate with beneficiaries and creditors early and clearly to reduce conflict and objections.
If there is a mortgage, request a payoff statement early so you understand the net proceeds the estate will receive.
When in doubt, ask the probate judge’s clerk or hire an Alabama probate attorney — selling real property in probate often involves technical requirements and timing rules.

If you want, I can outline a sample petition to request court authority to sell a piece of real property in Alabama (hypothetical language), or help you compile a checklist of documents you’ll need for a probate sale.