Selling Estate Real Estate During Florida Probate: A Creditor-Aware Guide

Selling estate real estate during Florida probate means the personal representative—appointed by the court and acting under the Florida Probate Code—markets, contracts for, and closes on real property the decedent owned at death, with title passing free of valid creditor claims. In most Palm Beach estates, the sale cannot safely close until the personal representative has authority (either by will, by court order, or by joinder of all beneficiaries) and until the estate has accounted for the creditors who may have a claim against the proceeds. Get either piece wrong, and a title insurer will refuse to insure—or worse, a creditor will surface after closing.

That last point is where most probate sales go sideways here. Florida is unusually generous to estate creditors, and real estate is often the single largest asset they can reach. This guide walks through how a probate sale actually works in Palm Beach County, with particular attention to the claims and homestead issues that catch families and even out-of-state agents off guard.

Who has the power to sell, and where it comes from

Only the personal representative (Florida’s term for an executor or administrator) can convey the decedent’s real estate during administration. A surviving spouse, a named beneficiary, or a hopeful buyer cannot force a sale on their own. The authority comes from one of three places:

• A power of sale in the will. Under Florida Statutes section 733.613(2), if the will confers a power to sell real property, the personal representative may sell, mortgage, or lease without a court order. This is the cleanest path and the reason a well-drafted will matters.
• A court order. Where the will is silent or there is no will, section 733.613(1) lets the personal representative petition the circuit court for authority to sell. The court considers whether the sale is in the best interest of the estate and its creditors.
• Joinder of all interested persons. When every beneficiary entitled to the property signs the deed (or consents), title companies will often insure the conveyance even absent an explicit power.

Title underwriters in Palm Beach are conservative on this point. Before they will issue an owner’s policy to your buyer, they want to see Letters of Administration that have not expired, and they want the source of the selling power documented. If you are the personal representative, confirm with the closing agent early which path you are using. I have seen contracts fall apart at the closing table because the parties assumed a power of sale existed and it didn’t.

Letters of Administration are your license to act

Letters of Administration are the court-issued document proving you hold the office. A buyer’s closing agent will pull a certified copy. If the estate has stalled—say, a will contest is pending—your letters may be limited or your authority curtailed. (For how a comparable fight plays out in another jurisdiction, this overview of shows the same structural problem: a disputed instrument can freeze the very authority you need to transact.)

The creditor problem: why claims govern the closing

This is the heart of a Florida probate sale, and where Palm Beach estates demand real attention. Florida law gives creditors a defined window to file claims, and the estate’s real property is fair game until that window closes and valid claims are resolved.

The two deadlines every personal representative must track:

1. The three-month notice period. Under section 733.702, a creditor who receives (or is served with) the Notice to Creditors must file its claim within three months after the first publication of that notice, or within 30 days after being served, whichever is later.
2. The two-year statute of repose. Section 733.710 bars virtually all claims not filed within two years of the decedent’s death, regardless of notice. This is an absolute backstop.

Why does this matter to a sale? Because proceeds from estate real estate are an estate asset, and known creditors—mortgage holders, the IRS, Medicaid estate recovery, judgment creditors, medical providers, credit card issuers—can reach them. A personal representative who distributes sale proceeds to beneficiaries before the claims period runs and before claims are paid can face personal liability under section 733.609 for breach of fiduciary duty.

Practically, this means you usually can sell the property mid-administration, but you often should not distribute the net proceeds until the creditor picture is settled. Many of my Palm Beach clients sell early to stop the bleed of taxes, insurance, and HOA dues, then hold the proceeds in the estate account as a reserve against pending or anticipated claims.

Mortgages, liens, and the order of payment

A recorded mortgage doesn’t wait for probate. It travels with the property and must be paid at closing or the buyer’s lender and title insurer will object. Other liens—a recorded judgment, a code-enforcement lien, unpaid property taxes, an association lien—also have to be cleared or escrowed. When estate cash is short, section 733.707 sets the statutory order in which the personal representative pays claims, and improper ordering is another route to personal liability. Don’t improvise the payment sequence; map it before you accept an offer.

Florida homestead: the rule that changes everything

If the property was the decedent’s homestead, throw out half of what you assumed. Constitutionally protected homestead (Article X, section 4 of the Florida Constitution) generally passes outside the probate estate and is shielded from most creditor claims. It is not an asset the personal representative can sell as part of administration in the ordinary way.

Instead, homestead typically descends directly to the heirs—often the surviving spouse and lineal descendants—under the constitutional and statutory rules (see sections 732.401 and 732.4015). To sell it, you usually need:

• A court order determining the property’s homestead status (a “petition to determine homestead”), and
• The signatures of all heirs who took title by operation of law, including any surviving spouse’s elective share or life-estate/remainder interest.

The creditor twist cuts both ways. Homestead’s exemption from creditors is a benefit to the family—but it also means those sale proceeds are not available to general creditors of the estate, which can reshape who gets paid. Determining homestead status correctly is one of the most consequential calls in a Florida probate. Get a determination on the record before you list.

Step-by-step: a clean probate sale in Palm Beach

1. Open the estate and qualify. File the petition, get Letters of Administration, and obtain the will’s terms or confirm intestacy.
2. Determine homestead vs. probate asset. If homestead, petition to determine status and identify the heirs who must join the deed.
3. Confirm your selling authority. Power of sale in the will, court order under 733.613, or joinder of beneficiaries.
4. Publish and serve the Notice to Creditors. Run a reasonably diligent search for creditors; serve known ones. The three-month clock starts here.
5. List, market, and contract. Use a probate-aware disclosure; the personal representative signs, not the heirs (unless homestead joinder applies).
6. Clear title. Pay or escrow mortgages, taxes, and liens; deliver a personal representative’s deed.
7. Hold proceeds as a reserve. Keep net proceeds in the estate account until claims resolve; pay claims in statutory order.
8. Distribute and account. Distribute only after the claims period closes and valid claims are satisfied; file the final accounting.

Common mistakes I see in Palm Beach probate sales

• Distributing too early. The single biggest source of personal-representative liability. The sale can close; the money should wait.
• Missing a homestead determination. Listing homestead as if it were an ordinary estate asset, then discovering at closing that the heirs—not the personal representative—hold title.
• Skipping diligent creditor search. Publication alone isn’t enough for known or reasonably ascertainable creditors; they must be served, or their claims can survive the three-month bar.
• Assuming the will’s power of sale exists. Read the actual instrument before you sign a listing agreement.
• Ignoring co-owner and survivorship interests. Property held jointly with right of survivorship or as tenancy by the entireties may pass outside probate entirely—nothing to sell through the estate.

Florida’s framework parallels the broader process of , but the homestead and creditor-priority rules here are distinctly Florida problems. If your decedent owned property in more than one state, expect ancillary administration and coordinate the two estates so a creditor in one doesn’t blindside the sale in the other.

When to bring in a probate attorney

A vacant probate property in Palm Beach bleeds money—insurance premiums climb on unoccupied homes, the tax bill keeps coming, and an HOA can lien for unpaid assessments. The pressure to sell fast is real. But a sale that closes without resolving authority, homestead, and claims can unwind months later and land on the personal representative personally.

Our firm handles creditor-heavy estates where the real estate is the contested centerpiece. For a deeper look at how Florida probate works end to end, see Morgan Legal’s , or review your options around wills and estate documents if you’re planning ahead. When you’re ready, reach out for a consultation before you list—getting the order of operations right at the start is far cheaper than fixing it at the closing table.

Frequently Asked Questions

Can a personal representative sell a house during Florida probate before creditor claims are resolved?

Usually yes—the sale itself can close once the personal representative has proper authority and title is clear. But the net proceeds should typically be held in the estate account as a reserve and not distributed to beneficiaries until the three-month claims period under section 733.702 has run and valid claims are paid in the statutory order. Distributing too early can expose the personal representative to personal liability.

Do all the heirs have to sign the deed to sell estate property?

It depends on your source of authority. If the will grants a power of sale under section 733.613(2), the personal representative can convey alone. Without that power, you may need a court order or the joinder of all beneficiaries. Constitutionally protected homestead is the big exception: it passes to the heirs by operation of law, so those heirs—not just the personal representative—must sign.

Is Florida homestead property part of the probate estate that can be sold?

Generally no. Protected homestead under Article X, section 4 of the Florida Constitution passes outside the probate estate, descends directly to the heirs, and is shielded from most creditors. To sell it you typically need a court order determining homestead status and the signatures of all heirs who took title, including any surviving spouse’s interest.

What happens to a mortgage when estate real estate is sold in probate?

The mortgage doesn’t disappear in probate—it stays attached to the property. It must be paid off or otherwise satisfied at closing, along with any property taxes, judgment liens, code-enforcement liens, or HOA liens, before a title insurer will insure the buyer. When estate cash is limited, section 733.707 governs the order in which claims and expenses are paid.

How long do creditors have to file claims against a Florida estate?

A creditor who is served with the Notice to Creditors generally has three months from first publication, or 30 days from service, whichever is later, under section 733.702. Section 733.710 imposes an absolute two-year bar from the date of death for most claims, even without notice. These deadlines drive when sale proceeds can safely be distributed.