Arkansas — Where Will the Sale Proceeds from My Dad's House Go? | Arkansas Probate | FastCounsel
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Arkansas — Where Will the Sale Proceeds from My Dad's House Go?

Detailed Answer

Short answer: To find out exactly where the sale proceeds from your dad’s house will go under Arkansas law, you need to determine who sold the house (the owner, a surviving joint owner, an executor or administrator, or a buyer at foreclosure), review the deed and title for mortgages and liens, check whether the house is being handled inside a probate case, request an accounting or closing statement from the person or company controlling the money, and, if necessary, ask the probate court to order a full accounting. The steps below explain how to do that and what legal rules commonly control distribution of proceeds in Arkansas.

1. Identify who sold the house and why that matters

Different paths produce different answers about where funds go:

  • If your dad sold the house while alive: the net proceeds go to the seller named on the deed and then to whoever lawfully owns that money (for example, joint owners or the seller’s estate if the seller later died).
  • If the sale happened after your dad died as part of the probate estate: the executor (personal representative) or administrator handles sale proceeds and must follow probate rules on paying debts and distributing the remainder to heirs or beneficiaries.
  • If the title showed a surviving joint owner (joint tenancy with right of survivorship or tenancy by the entirety where applicable): the surviving joint owner typically takes the property outside probate and controls sale proceeds.
  • If the sale was a foreclosure or tax sale: sale proceeds first satisfy the foreclosing creditor and liens; any surplus may be paid to the former owner or to the estate under court procedures.

2. Check public records: deed, mortgage, liens, and probate filings

Public records tell you what claims attach to the house and whether a probate case exists:

  • County Recorder (often called Recorder of Deeds): review the deed to learn who owned the house and whether joint owners exist. The recorder’s office also shows recorded mortgages, liens, and releases.
  • County Sheriff or Tax Collector: check for unpaid property taxes and possible tax sale records.
  • County Circuit Clerk / Probate Court records: search for a probate (estate) case filed after your dad’s death. If there is a probate, court files will show the personal representative, inventory of assets (often including the house or proceeds), creditor notices, and accountings.

In Arkansas, probate and estate law are in Title 28 of the Arkansas Code; for an overview of statutes and probate practice start at the Arkansas Legislature’s code portal: https://www.arkleg.state.ar.us/ArkansasCode/. For county-level probate procedures and forms see the Arkansas Judiciary site: https://www.arcourts.gov/.

3. If proceeds are held by a title company, closing agent, or escrow, request the closing statement

If the house was sold through a realtor or closing agent, ask for the HUD-1 or Closing Disclosure (final settlement statement). That statement lists gross sale price, payoffs (mortgage payoff, liens), closing costs, real estate commissions, taxes, pro-rated items, and the net amount due to the seller or seller’s representative. If you are an heir or beneficiary, show proof of relationship and request a copy.

4. If the house is in probate, the personal representative must pay debts first and provide accountings

When a house is sold as part of a probate estate, Arkansas probate practice requires the personal representative to collect estate assets, pay valid creditors and expenses (including funeral costs, administration expenses, taxes, and valid liens), and then distribute the remainder to heirs or beneficiaries according to the will or intestate succession. Beneficiaries and heirs have rights to see inventories and accountings filed in the court record and may petition the court for a detailed accounting if needed. You can find the statutes governing the administration of estates under the Arkansas Code Title 28 probate provisions: https://www.arkleg.state.ar.us/ArkansasCode/.

5. Common order of who gets paid from sale proceeds

While each situation varies, proceeds usually flow in this order:

  1. Costs to complete the sale: broker commissions, closing fees, and escrow/title charges.
  2. Mortgage lenders and recorded lienholders (mortgage payoffs, lien releases).
  3. Property taxes and government liens (including unpaid county or federal taxes).
  4. Valid creditor claims against the estate (if in probate) and administration expenses.
  5. Expenses and claims with statutory priority (e.g., certain funeral or medical claims where state law gives priority).
  6. Remaining balance distributed to the person(s) entitled under the deed, will, or Arkansas intestacy rules.

6. How to get specific documents and answers

Follow these practical steps in order:

  • Obtain the deed and title report for the property from the county recorder or a title company.
  • Contact the closing/title company or escrow agent and ask for the final closing statement and where they disbursed funds.
  • If the home was in probate, go to the county circuit clerk’s office (or their online docket) to review the probate file, inventories, creditor claims, and accountings.
  • Request a written accounting from the executor/personal representative. Arkansas law and court rules allow interested persons to inspect probate filings and request formal accountings through the court.
  • If you believe money was misapplied, file a petition in probate court asking the judge to compel an accounting or to surcharge a personal representative (court can order repayment or other remedies).

7. When to get help from an attorney

Consider contacting an attorney when:

  • The personal representative refuses to provide accountings or the explanations are incomplete.
  • You suspect sale proceeds were diverted, paid to the wrong person, or creditors weren’t properly paid.
  • A dispute exists among heirs, a beneficiary, or a surviving joint owner claims the property.
  • There are complex lien, tax, or foreclosure issues that require negotiation or litigation.

A lawyer can request records, review title searches and accountings, and, if needed, file petitions in probate court for an accounting or to enforce distribution rights.

8. Example (hypothetical facts to illustrate)

Hypothetical: Dad died owning the house in his name. The executor sold the house during probate for $200,000. The closing statement shows $150,000 was paid to the mortgage holder, $12,000 in real estate commission and closing costs, and $2,000 in unpaid property taxes. The executor pays those first from the sale proceeds. If the estate has no other debts and the will leaves everything to one child, the remaining $36,000 goes to the estate and will be distributed to that child after the executor completes court-required reporting. If heirs disagree, anyone with standing can ask the probate court for an accounting and distribution order.

Key Arkansas statute references and resources

Arkansas statutes governing probate and estate administration are found in Title 28 of the Arkansas Code. For statute text and specific provisions on personal representatives, inventories, creditor claims, and accountings, use the Arkansas Legislature code portal: https://www.arkleg.state.ar.us/ArkansasCode/. For county-level filings and forms, check your county circuit clerk and the Arkansas Judiciary site: https://www.arcourts.gov/.

Disclaimer

This article is educational only and does not provide legal advice. It does not create an attorney-client relationship. For advice about your specific situation and to take legal action, consult a licensed Arkansas attorney.

Helpful Hints

  • Start with public records: deed, mortgage, and probate filings—those documents answer many questions.
  • Ask for the closing/HUD-1 or Closing Disclosure; it lists precisely how sale proceeds were distributed.
  • If the house was in probate, check the probate docket for inventories and accountings; those are public records.
  • Keep written requests when you ask an executor, title company, or closing agent for statements—documenting requests helps if you later need the court’s assistance.
  • If you are an interested person (heir or beneficiary), you generally have a right to inspect probate records and to petition the court for an accounting in Arkansas.
  • If you discover a mortgage, lien, or tax claim, contact the lienholder or taxing authority to confirm payoff figures; make sure payoffs were paid before assuming funds were properly disbursed.
  • When in doubt or if funds are missing, consult an Arkansas probate or real estate attorney promptly—statutes set time limits for claims and challenges.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney.