Selling Inherited Property in Texas: Probate, Heirs, Taxes

Short answer

Texas property passes to heirs or will beneficiaries the moment the owner dies, but a buyer's title company needs proof of who can sign. That proof comes from a probate route: letters for an executor or administrator, a will probated as a muniment of title, a small estate affidavit or a recorded heirship record.

Inheriting a house in Texas usually comes with a practical question: how do we sell it? The law hands you ownership quickly, but a buyer, a lender and a title company all want paper that shows who can sign the deed. This guide explains the statewide rules and the main routes to that paper. For probate courts, fees and filing offices in Tarrant, Dallas and Collin counties, see our DFW guide to selling inherited property.

Who owns the house the day after a death

Estates Code Sec. 101.001 says that when a person dies with a will, the property the will leaves to someone vests in that person immediately. If there is no will, the estate vests immediately in the heirs at law. So ownership changes at the moment of death. What does not change on its own is the public record: the deed still shows the person who died. Selling means closing that gap.

If there was no will: who the heirs are

Chapter 201 of the Estates Code sets the order. A short version:

Situation	Who inherits (Estates Code)
No spouse	Children and their descendants; if none, the parents in equal shares; if one parent has died, that half goes to brothers, sisters and their descendants (Sec. 201.001)
Spouse, community property, all children are also the spouse's	All of the decedent's community half goes to the surviving spouse (Sec. 201.003)
Spouse, community property, a child from outside the marriage	The decedent's half of the community goes to the decedent's children (Sec. 201.003)
Spouse and children, separate property	Spouse gets one-third of personal property and a life estate in one-third of the land; the children get the rest (Sec. 201.002)

These splits often leave several people owning a piece of one house. Every owner, or someone with legal authority for them, has to sign for a sale.

Four routes to the power to sell

Which route fits depends on whether there is a will, how big the estate is and whether there are debts.

Independent administration. A court appoints an executor (with a will) or an administrator (without one) and issues letters. Under Sec. 402.052, an independent executor or administrator has the power to sell estate property without court approval, unless the will limits it. This is the cleanest route for a buyer, because one person signs.
Dependent administration. The court supervises the estate. Because Sec. 402.052 describes independent representatives as having the supervised power of sale "without the requirement of court approval," a dependent administrator should expect court involvement in a sale.
Will probated as a muniment of title. Under Sec. 257.001, a court may admit a will as a muniment of title, without appointing anyone, if the estate owes no unpaid debt other than debt secured by real estate, or if there is no other need for administration. The order and the will become the record of who owns the house, and those owners sign the deed.
Small estate affidavit. Under Sec. 205.001, heirs of someone who died without a will can use an affidavit if 30 days have passed, no administration is pending, and the estate's assets, not counting the homestead and exempt property, are $75,000 or less. The affidavit is filed with the court clerk and approved by the judge.

Homestead under a small estate affidavit: Sec. 205.006 says that if the decedent's homestead is the only real property in the estate, title to it may pass under the affidavit, which must be recorded in the deed records of the county where the house is located. A good-faith buyer may rely on it. An heir left out of the affidavit can recover from the heirs who were paid.

Heirship affidavits and the five-year mark

Families sometimes record an affidavit of heirship, a sworn statement of family history that names the heirs. Estates Code Sec. 203.001 makes such a statement prima facie evidence of the facts in it once it has been in the deed records of the county for five years or more. Before that, it is still useful paper, but whether a title company will insure a sale based on it is up to the title company. A court can also declare heirship in a formal proceeding.

Do not let four years slip by

If there is a will, the clock matters. Sec. 256.003 says a will generally may not be admitted to probate after the fourth anniversary of the death unless the person applying was not in default, and letters testamentary cannot be issued if the application came after that date. The same section protects someone who, after four years, buys in good faith from the heirs without knowing of a will. If a parent died several years ago and nobody filed, talk to a probate attorney now.

Debts, the mortgage and Medicaid claims

An inherited house can come with obligations. Three to check:

The mortgage. Federal law, 12 U.S.C. 1701j-3(d)(5), bars a lender from using a due-on-sale clause on a transfer to a relative resulting from the borrower's death, for homes with fewer than five units. The CFPB also extended servicing protections to successors in interest, such as family members who receive a home when a relative dies. Keep paying while you sort things out, and tell the servicer in writing who you are.
Estate claims. Sec. 355.102 ranks claims against an estate. Funeral and last-illness costs come first, up to set limits, and secured claims such as a mortgage or tax lien are Class 3.
Medicaid estate recovery. Class 7 under Sec. 355.102 covers repayment of medical assistance paid by the state. HHSC's estate recovery program applies to certain long-term care services received at age 55 or older, and it lists situations, such as a surviving spouse, where it will not seek repayment.

Property taxes while you own it

Tax Code Sec. 11.43(o), (o-1) and (o-2) let an heir who lives in the house claim the homestead exemption on heir property without a recorded deed in their name. The applicant files an affidavit establishing ownership, a copy of the prior owner's death certificate and the most recent utility bill for the property. If several heirs live there, the others sign affidavits authorizing the application.

Income and estate tax on the sale

IRS Publication 551 says the basis of inherited property is generally its fair market value on the date of death, or on the alternate valuation date if the estate elects it. If you sell soon after inheriting, at about that value, there may be little gain to report. Keep proof of value at death, such as an appraisal. For federal estate tax, the IRS lists the basic exclusion amount for deaths in 2026 as $15,000,000.

This page explains what Texas statutes and federal agencies say. It is not legal or tax advice. A Texas probate attorney should guide the probate step.

Selling an inherited house to Cash Home Advisors

Inherited houses are often vacant, dated or full of belongings, and the heirs may live far apart. Cash Home Advisors is based in Fort Worth. Once the probate paperwork is in place, we can close in 7–14 days, we pay all closing costs, and every heir who signs sees the closing statement before signing.

Learn more on our selling an inherited house in Texas page, request a cash offer, or see how our process works. More guides are in our inherited property category.

Want a cash offer instead?

We buy Texas houses as-is, pay all closing costs, and can close in 7–14 days.

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Frequently asked questions

Can I sell an inherited house in Texas without probate?

Sometimes. If there was no will, the estate is small and the house was the decedent's homestead and only real property, Estates Code Sec. 205.006 lets title pass under an approved small estate affidavit recorded in the deed records. Recorded heirship affidavits are another tool. Whether a title company will insure a sale without a court order is its decision, so ask early.

How long do I have to probate a will in Texas?

Estates Code Sec. 256.003 says a will generally may not be admitted to probate after the fourth anniversary of the death unless the applicant was not in default, and letters testamentary may not be issued if the application came after that anniversary.

Do I owe capital gains tax when I sell an inherited house?

Your gain is measured from your basis, and IRS Publication 551 says the basis of inherited property is generally its fair market value on the date of death or the alternate valuation date. If you sell for about that value soon after, the gain may be small. A CPA can confirm.

Can an executor sell the house without every heir agreeing?

An independent executor or independent administrator has the same power of sale as a supervised representative, without needing court approval, unless the will limits it (Estates Code Sec. 402.052). Heirs who object still have rights in the probate case, so an executor should talk to a probate attorney before selling over objections.

Sources

General information, not legal or tax advice. Talk to a Texas attorney or CPA about your situation.