What authorization forms must an heir sign to direct distribution of real property sale proceeds in Iowa? | Iowa Probate | FastCounsel
IA Iowa

What authorization forms must an heir sign to direct distribution of real property sale proceeds in Iowa?

Detailed Answer

Under Iowa law, a decedent’s real property generally requires probate administration before sale. Iowa Code Chapter 633 governs probate. An heir cannot directly sell real estate or allocate sale proceeds without a court-appointed personal representative (executor or administrator).

Here are the key steps and forms:

  1. Petition for Administration
    File a petition in the county probate court under Iowa Code § 633.150 to appoint an executor (if there’s a will) or administrator (if intestate). This petition lists heirs, assets, and requests authority to sell real property.
  2. Waiver of Bond and Consent to Appointment
    If all adult beneficiaries agree, they sign a Waiver of Bond and Consent form under Iowa Code § 633.178. This waives the surety bond requirement and speeds up the appointment.
  3. Letters Testamentary or Letters of Administration
    Once the court approves, it issues Letters Testamentary (with a will) or Letters of Administration (intestate). These letters legally empower the personal representative to act, including signing deeds.
  4. Order of Distribution
    After closing, the personal representative obtains a court Order of Distribution under Iowa Code § 633.310. This order directs how sale proceeds distribute among heirs.
  5. Distribution Instruction and Receipt & Release
    The title company or closing agent typically uses a Distribution Instruction Form. Each heir signs a Receipt and Release acknowledging the amount received and releasing the personal representative and closing agent from further liability.

Note: Iowa’s Small Estate Affidavit (Iowa Code § 633.158) covers only personal property and cannot transfer or sell real estate.

Helpful Hints

  • Review your county court’s local probate forms and procedures.
  • Obtain certified copies of Letters Testamentary or Administration.
  • Provide the closing agent with a certified Order of Distribution.
  • Keep clear records of each heir’s signature on Waivers and Releases.
  • Consult a probate attorney for complex estates or title issues.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney.