Frequently Asked Question

Detailed Answer: Steps an executor (personal representative) in Maine should follow to sell real property to pay estate debts

Short overview. As the executor (also called the personal representative) you must follow Maine probate procedures to convert estate assets into cash, pay valid estate debts, and then distribute any remainder to beneficiaries. That usually means: get appointed by the probate court, inventory the estate, notify creditors, determine whether you have authority to sell the real property, clear liens and title issues, sell the property (with court approval when required), pay debts and expenses from sale proceeds, and provide accounting to the court and beneficiaries.

This is an educational overview, not legal advice. Consult a Maine probate attorney for help applying the law to your case.

1. Confirm your authority: appointment and letters

First file the necessary petition in the Maine Probate Court to be appointed as the personal representative if that has not already been done. The court issues letters testamentary (if there is a will) or letters of administration (if there is not). You generally must present those letters to third parties (title company, banks) to show your authority to act for the estate.

See Maine probate procedures: Maine Probate Code (Title 18‑A of the Maine Revised Statutes): https://legislature.maine.gov/statutes/18-A/. Practical probate information is available from the Maine Judicial Branch: https://www.courts.maine.gov/court-records/probate/.

2. Inventory the estate and identify encumbrances

Create a written inventory that lists the real property, its legal description, and any mortgages, liens, property taxes, or other encumbrances. Obtain copies of deeds, mortgage statements, tax bills, and a current title report if possible. You may need a professional appraisal to determine fair market value before selling.

3. Notify creditors and follow notice requirements

Maine law requires personal representatives to give notice to creditors and to follow the statutory claims process for the estate. You must publish or mail notices as required and allow the statutory period for claims. Do not distribute estate funds until valid creditor claims are resolved or appropriately reserved for; otherwise you may be personally responsible for unpaid claims.

For details see the Maine Probate Code, Title 18‑A: https://legislature.maine.gov/statutes/18-A/.

4. Determine whether you need court approval to sell the real property

Check the will (if any) for express authority to sell real property. Some wills grant the personal representative full power to sell without court confirmation. If the will does not grant sale authority, or if beneficiaries object, you generally must obtain court authorization to sell real estate. Even when you have express authority, the title company or buyer may ask for a court order or other proof of authority.

If the property is subject to a lien (mortgage or judgment) you will need to address those encumbrances at closing. If there is a homestead claim, surviving spouse protections, exempt property, or a family allowance, those claims can affect whether and how the property is sold — check Maine law and consult the probate court or a lawyer.

5. Prepare for sale and clear title issues

Common tasks before marketing and closing:

Obtain a current title search and address any clouds on title.
Request payoffs for mortgages, HELOCs, tax liens, and judgments.
Secure an appraisal or broker price opinion to set a listing price.
Maintain the property (insurance, routine upkeep) to preserve value while it’s on the market.
Get any court order required to sell recorded in the registry of deeds or presented at closing.

6. Execute the sale (marketing, contract, closing)

The estate signs the sale contract through the personal representative. At closing you will typically present:

Letters testamentary/letters of administration showing your authority.
Death certificate.
Estate federal employer identification number (EIN) for escrow and tax reporting.
A court order authorizing sale, if the purchaser or title company requires one.

The closing agent pays off mortgages and liens from sale proceeds and issues a closing statement showing all receipts and disbursements.

7. Use proceeds to pay debts, costs, and taxes; keep records

Follow the Maine probate priority rules when using sale proceeds: pay funeral expenses, administrative costs (probate fees, attorney fees, appraisal costs), secured debts (mortgages), and valid unsecured creditor claims. Retain detailed records and copies of receipts. If creditor claims remain unresolved, deposit funds to the court or maintain reserves as directed.

8. Account to the court and distribute remaining assets

Prepare and file the required accounting with the probate court showing how you handled the sale, how sale proceeds were applied to debts and expenses, and the proposed distributions to beneficiaries. Obtain the court’s approval and then distribute any remaining funds according to the will or Maine’s intestacy rules.

Common documents and items you will need

Letters testamentary or letters of administration from the Maine Probate Court.
Certified copy of the death certificate.
Estate EIN (IRS) for the estate bank account and closing.
Title search and any court order authorizing sale.
Appraisal or broker price opinion and listing agreement (if real estate agent used).
Payoff statements for liens and mortgages, tax bills.
Detailed inventory and final accounting records.

When to get a Maine probate attorney

Consider hiring a Maine probate attorney if any of these apply:

The will does not clearly authorize sale of real estate.
Beneficiaries or heirs contest the sale.
There are title defects, multiple liens, or complex creditor claims.
The estate owns a small number of assets but significant debts and you need to decide whether to sell particular property.
You need help preparing the required court petition or accounting.

Helpful Hints

Always obtain and keep copies of the probate court paperwork (letters, orders, filings) — title companies often require them at closing.
Open a separate estate bank account and deposit sale proceeds there. Never commingle estate money with personal funds.
Get a written payoff for any mortgage or lien before closing so funds can be distributed correctly at settlement.
Preserve property condition and maintain insurance until the sale closes to avoid exposure for loss.
Communicate early and often with beneficiaries so they understand timelines and the creditor-claims process.
When in doubt whether you need court approval to sell, ask the probate clerk or a Maine probate attorney — courts prefer clarity before transferring real property owned by an estate.
Keep meticulous records of every transaction, receipt, and distribution — the court and beneficiaries will expect a clean accounting.

Resources

Maine Probate Code (Title 18‑A): https://legislature.maine.gov/statutes/18-A/

Maine Judicial Branch probate court information: https://www.courts.maine.gov/court-records/probate/

Disclaimer: This article explains general Maine probate procedures and common steps for selling estate real property to pay debts. It is for educational purposes only and is not legal advice. For guidance specific to your situation, consult a licensed Maine probate attorney or the probate court.