What steps do I need to clear creditor claims before selling my parent’s estate home? - Florida
The Short Answer
In Florida, you generally don’t “clear” creditor claims by getting informal sign-offs—you protect the sale by making sure the estate’s creditor-notice process is handled correctly and that the personal representative has authority to sell. If the sale is done under the personal representative’s power of sale (or a court-authorized/confirmed sale), Florida law can allow the buyer to take title free of most estate creditor claims, with important exceptions like existing mortgages and liens.
What Florida Law Says
Florida probate has a structured creditor-claims system. The personal representative must publish a notice to creditors and also serve notice on creditors who are known or reasonably ascertainable. Creditors who miss the applicable claim deadlines can be barred, but certain claims and liens can still affect the property (for example, recorded mortgages and other existing liens).
If you’re trying to sell an estate home, the key legal issues are (1) whether the personal representative has the legal authority to sell and (2) whether the sale is structured in a way that protects the buyer and the estate from later creditor problems.
The Statute
The primary law governing creditor notice and claims timing is Fla. Stat. § 733.2121.
This statute requires the personal representative to publish a notice to creditors and to serve notice on reasonably ascertainable creditors, and it ties creditor rights to strict claim-bar deadlines.
For selling the home, the authority and creditor-protection rules are addressed in Fla. Stat. § 733.613, which explains when a personal representative can sell real property and provides that, in certain probate sales, the purchaser takes title free of creditor claims and beneficiary entitlements (except existing mortgages or other liens against the real property).
If you want more background reading, see: How Do I File a Florida Probate Notice to Creditors? and How Are Creditor Claims Handled in a Florida Estate (and What Do They Mean)?.
Why You Should Speak with an Attorney
Even though Florida statutes provide a framework, selling an estate home while creditor issues are still in play can create real risk for the personal representative and the transaction. Legal outcomes often depend on:
- Strict Deadlines: Creditor rights can turn on whether notice was properly published and served under Fla. Stat. § 733.2121, and whether claims are barred by the applicable limitations rules (including the outside two-year bar in Fla. Stat. § 733.710).
- Burden of Proof: The estate may need to show a diligent creditor search and proper service of notice—mistakes can extend a creditor’s ability to pursue the estate and complicate a closing.
- Exceptions and Title Issues: Even if estate creditor claims are handled, recorded mortgages, HOA liens, property tax liens, and other encumbrances can still attach to the property. And whether the personal representative needs court authorization to sell can depend on the will and the probate posture under Fla. Stat. § 733.613.
Trying to handle this alone can lead to a delayed or failed closing, personal representative liability concerns, or a buyer/title company refusing to proceed. A Florida probate attorney can evaluate whether the home is probate property, confirm the personal representative’s authority to sell, and reduce the risk of creditor-related surprises.
Related reading: When Can Heirs Sell Inherited Real Property in Florida Without Future Creditor Claims?.
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Disclaimer: This article provides general information under Florida law and does not create an attorney-client relationship. Laws change frequently. For legal advice specific to your situation, please consult with a licensed attorney.