Wholesaling Probate Properties in Texas

The short answer

Can you wholesale a probate property in Texas?

Yes, as long as the person signing has the legal power to sell and you give the written wholesaling disclosure. In most Texas estates that person is an independent executor or administrator.

Texas lets you assign a purchase contract without a license if you disclose, in writing, that you are selling your interest in the contract and not the house. That rule, in Occupations Code §1101.0045 as amended by SB 1577, applies to estate deals the same way it applies to any other. The extra work in probate is confirming who has authority, which you do by reading the court file before you make an offer.

The opportunity

Why estate houses make strong Texas wholesale deals

Most heirs do not want to own a second house. They live in another city, they are splitting the money with siblings, and the property often needs years of deferred repairs. Independent administration lets many Texas executors sell without asking a judge each time, so a motivated estate can close in weeks rather than months.

Lead sources

Where to find probate leads in Texas

• County probate records. Every Texas county clerk keeps the probate docket, and large counties such as Harris, Dallas, Bexar, Tarrant and Travis have searchable online case portals. Look for applications for letters testamentary or letters of administration filed in the last 30 to 90 days.
• The inventory. A personal representative usually files an inventory of estate assets within 90 days of qualifying. If real property is listed, you have a lead and often an address.
• Heirship cases. When there is no will, the court determines heirs in a separate proceeding. These files name every heir, which shows you who must agree to a sale.
• Appraisal district records. Look the property up on the county appraisal district site. A tax bill still mailed to the deceased owner, or to an heir out of state, tells you the house is sitting.
• Probate attorneys. Lawyers who handle estates see houses that need a fast, as-is sale. A short, respectful introduction and a reliable close can turn one attorney into a repeat source. Our probate leads guide has letter ideas.

Your exit

Who buys Texas estate houses

Estate properties suit two buyer groups. Flippers want the dated three-bedroom house in an established neighborhood, and landlords want the smaller house they can rent after a light rehab. Ask each buyer whether they will take a house that still needs a full clean-out, because many estates come with furniture and decades of belongings.

Be clear about timing. If the estate is in dependent administration, the sale needs a court order, which can add weeks. Tell your buyer that up front so the deal does not fall apart over a closing date you could not control.

Step by step

How to start wholesaling probate properties in Texas

1. Read the court file. Confirm who was appointed, whether the administration is independent or dependent, and whether letters have been issued.
2. Contact the representative. Write to the executor or administrator, or their attorney, with sympathy first and an offer to help second.
3. Check the title. Ask an investor-friendly title company to run a preliminary search for mortgages, liens and missing heirs.
4. Price it carefully. Get sold comps from an agent, since Texas does not publish sale prices, then use the ARV calculator and the MAO calculator.
5. Sign with the right person. The executor signs for the estate, in their capacity under the letters. Give the written disclosure that you intend to assign.
6. Plan the clean-out. Agree who removes belongings and by when. Buyers pay more for an empty house.
7. Assign and close. Sign the assignment of contract with your buyer and close through title.

After their father passed in Lubbock, his will named his eldest daughter as independent executor. Letters testamentary were issued, so she could sell the house without court approval of each step. Her siblings agreed to sell rather than keep a rental.

You confirmed the letters with the title company, priced repairs at about $40,000 and signed with her as executor at $135,000 with the written assignment disclosure. The siblings signed a short agreement backing the sale so title had no surprises.

A rehabber paid $146,000 for the assignment. The estate paid final bills and taxes at closing, and the siblings split what remained. Independent administration is common in Texas and makes probate deals move faster.

Texas rules to know

Muniment of title and small estates change who signs

Not every Texas estate has an executor. A will can be probated as a muniment of title, which passes property to the people named in the will without appointing anyone. Then the beneficiaries sign the contract themselves, and title will want the court order and often a recorded affidavit.

For small estates without a will, a small estate affidavit can transfer only the homestead, not other real estate. If the house was a rental or a second home, the heirs may need an heirship proceeding first. Find this out before you promise a buyer a closing date.

Learn it with a mentor

Get your first estate deal reviewed

Probate deals reward patience and clean paperwork. Mentorship students send us the court file and their offer before they sign anything.

FAQ

Probate Properties in Texas: common questions

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