A guide to selling a home in probate
This article is general information about probate procedure, not legal or tax advice. Authority and timelines vary by state and county. Consult a Michigan real estate attorney and a qualified tax professional.

Selling a home in probate means selling it as a fiduciary, on the estate’s clock rather than the market’s. In Michigan, creditors have 4 months from published notice to present claims, and a personal representative cannot file the sworn statement that closes an unsupervised estate until 5 months after appointment. The house can close on an ordinary 30 to 45 day timeline once you hold authority; the estate around it usually cannot.
The sequence rarely changes: the court appoints a personal representative, the estate values the property, heirs and creditors get notice, the home is marketed, liens clear at closing, and what remains pays debts before anything reaches an heir. Court involvement depends on your letters of authority.
Learn who has authority to sell, how the property is valued, what clears title, and how long it takes. If you’re earlier in the process, start with our Selling a Home guide.
Key takeaways:
- Two documents control the sale: Your letters of authority say whether you can sell at all, and within 91 days of appointment you owe the court an inventory listing the home’s fair market value as of the date of death plus every encumbrance against it.
- The estate’s clock is statutory: Creditors get 4 months from published notice to present claims, and an unsupervised Michigan estate cannot be closed until 5 months after the personal representative’s appointment.
- Plan the net, not the price: Payoffs, liens and administration costs come out of proceeds first, and the probate inventory fee alone runs $612.50 on an estate valued at $300,000 after mortgage debt is deducted.
What does it mean to sell a home in probate?
It means the estate, acting through a court-appointed personal representative, sells real property that belonged to someone who died, with proceeds staying in the estate until debts and administration costs are paid. In Michigan the personal representative holds the same power over estate property an absolute owner would have, in trust for creditors and heirs, exercisable without notice, hearing, or court order unless the will or a court order says otherwise.
The difference is that the seller is a fiduciary, so decisions on price, marketing and repairs have to be defensible to heirs and to the court. Probate is also not the only path: property held jointly with rights of survivorship, in a living trust, or conveyed by a properly recorded enhanced life estate deed may pass outside probate entirely. Nolo’s overview of the legal side of selling a house is a reasonable orientation, not a substitute for counsel.
Do you have authority to sell?
Your letters of authority answer that, and nothing else does. Michigan’s form PC 572 either authorizes you to perform all acts authorized by law or carries a checked box limiting you, including one that removes all authority over the estate’s real estate. Read yours before signing a listing agreement, and confirm your powers with a Michigan probate attorney.1
| Type of authority | Court involvement in the sale | Notice required | Confirmation hearing? |
|---|---|---|---|
| Full authority, unsupervised | None; owner-equivalent power over title | Appointment notice in 28 days; creditor notice published | No |
| Restricted letters, real estate limited | Court order before you list or convey | Notice to interested persons on the petition | Usually, on petition |
| Supervised administration | Continuing court authority; restrictions endorsed on the letters | Notice to interested persons throughout | Only if ordered; distribution needs an order |
| Formal administration in other states | Petition and court confirmation are common | Notice to or consent from heirs | Often, sometimes with open overbidding |
How is the property valued?
By a date-of-death valuation that lands in the inventory within 91 days of appointment. Michigan requires the representative to list each item of estate property with its fair market value as of the date of death, plus the type and amount of any encumbrance, and to send a copy to all presumptive distributees.
That number does double duty: it anchors what heirs and the court measure your sale price against, and it drives the probate inventory fee. For an estate valued between $100,000 and $500,000, the fee is $362.50 plus 1/8 of 1% of the amount over $100,000, or $612.50 on a $300,000 estate. Since 2013, mortgage debt secured by estate real property is deducted before that fee is calculated.
Order a written appraisal rather than an agent’s market analysis whenever there are multiple heirs, disagreement, or a related party who wants to buy. See our walkthrough of the home appraisal process.
What does the inventory fee come to at other estate values?
The other brackets matter when an estate sits below $100,000 or above $500,000. According to MCL 600.871(1), an estate valued at $50,000 to under $100,000 pays $237.50 plus 1/4 of 1% of the amount over $50,000; each additional $100,000 or larger fraction from $500,000 to $1,000,000 adds $62.50, and each additional $100,000 or larger fraction over $1,000,000 adds $31.25.
Hypothetical example, not an offer: the statute’s brackets applied to round values.
| Estate value after secured debt | How MCL 600.871 figures it | Inventory fee |
|---|---|---|
| $75,000 | $237.50 plus 1/4 of 1% of $25,000 | $300.00 |
| $200,000 | $362.50 plus 1/8 of 1% of $100,000 | $487.50 |
| $400,000 | $362.50 plus 1/8 of 1% of $300,000 | $737.50 |
| $500,000 | $362.50 plus 1/8 of 1% of $400,000 | $862.50 |
Source: MCL 600.871(1) and (2), Michigan Legislature, fee schedule and deduction of indebtedness secured by estate real property.
Hypothetical example, not an offer: a house worth $280,000 with a $120,000 mortgage balance, plus a $40,000 bank account, is a $200,000 estate for the fee, or $487.50. Without the deduction the same estate would be valued at $320,000 and the fee would be $637.50, a $150 difference.
The same date-of-death number does a second job at tax time. Per the IRS in Publication 551 (12/2025), the basis of inherited property is generally its fair market value at the date of death, and if no Schedule A reporting the estate tax value was received, basis can be set using the appraised value at the date of death used for state inheritance or transmission tax purposes.
Who has to be notified?
Heirs and devisees within 28 days, and creditors by publication. Michigan gives the representative 28 days from appointment to notify the decedent’s heirs and devisees by personal service or first-class mail, and interested persons are also entitled to a copy of the inventory.
Creditors run a separate clock. On appointment, the representative publishes notice telling creditors to present claims within 4 months or be forever barred, and must send it directly to each creditor known at publication or discovered in the 4 months after. Skip publication and the protection disappears: claims can then be presented for up to 3 years after death. Publish early, because that window starts on the publication date, not the day you get an offer.
What should a personal representative do before listing the home?
Accept the appointment, secure the house and get the numbers in writing. The State Bar of Michigan’s guide for personal representatives says you must accept the appointment in writing before you can act, and that your letters may limit your authority or require a judge’s written approval for some actions.
- Request the payoff in writing: For a mortgage, Regulation Z requires the servicer to send an accurate payoff statement within a reasonable time and in no case more than 7 business days after a written request from the consumer or any person acting on the consumer’s behalf, per 12 CFR 1026.36(c)(3) (eCFR current as of October 27, 2026). Send the request with a copy of your letters.
- Ask the assessor about the principal residence exemption: Michigan Treasury says the principal residence exemption exempts an owner’s principal residence from the local school operating millage, up to 18 mills. Under MCL 211.7cc, an owner has 90 days after the home stops being a principal residence to file a rescission form; ask the local assessor how the estate should handle it.
Run the numbers before you set a price. Our guide to seller closing costs lists the usual charges, and the seller net sheet calculator takes the payoff, commission you negotiate, concessions and Michigan transfer tax and shows what reaches the estate account.
What has to clear before the home can convey?
Everything attached to the title, and you want to know what that is before you list. Unresolved liens are the most common reason a probate closing collapses, so order a title search up front.
- Voluntary liens: The mortgage, a home equity line, or a land contract balance. Order a written payoff statement early; it covers principal, interest to the payoff date and release fees, and it expires.
- Involuntary liens: Delinquent property taxes, judgment liens and construction liens recorded under Michigan’s Construction Lien Act. Most must be satisfied or released at closing. They do not travel to the buyer.
- Medicaid estate recovery: Michigan’s program reaches estates of recipients who began receiving Medicaid long-term care services after September 30, 2007, and is generally limited to property passing through probate.
- Reverse mortgages: A HECM balance is due and payable on the borrower’s death, sale, or permanent move-out. Heirs generally get 30 days to respond to the due-and-payable notice and six months before the servicer must commence foreclosure, extendable in 90-day increments with HUD approval where the estate documents active marketing or a payoff in progress. The regulation sets no fixed outside limit, only “such additional time as may be approved by the Commissioner”, though servicers commonly describe the ceiling as two extensions, or roughly 12 months from the maturity event, so get your deadline from the servicer in writing. The loan is non-recourse, so the estate never owes more than the loan balance or the property’s value, and an underwater home may be sold for at least 95% of appraised value, with the lender accepting the net proceeds as satisfaction of the loan.2
- Forbearance is not forgiveness: If the decedent paused payments, the full balance plus any deferred amount is still owed at closing.
Two guides go deeper: how property liens attach and selling a home with a lien on it. Bring in a title company early; our guide to choosing a title company covers what to ask, and the American Land Title Association explains how title insurance protects the conveyance.
How do tax liens, IRS liens and contractor liens change the payoff?
- Delinquent Michigan property taxes: According to MCL 211.78a, taxes levied in one year that remain unpaid are returned as delinquent on March 1 of the next, and then carry a 4% county property tax administration fee plus interest at a noncompounded 1% per month or fraction of a month. Hypothetical example, not an offer: on $3,000 of returned taxes, the 4% fee adds $120 and each month or part of a month adds $30.
- A federal tax lien: The IRS says it releases a lien within 30 days after the tax debt is paid, and a discharge removes the lien from specific property (page updated September 14, 2026). IRS Publication 783 asks for a discharge application at least 45 days before the date the certificate is needed. Its own worked example: a $203,000 lien, a $215,000 sale price, $135,000 of senior encumbrances and $15,000 of settlement costs leave the IRS interest at $65,000.
- Construction liens: Under MCL 570.1111, a contractor has 90 days after last furnishing labor or material to record a claim of lien with the county register of deeds, and MCL 570.1117 gives 1 year from recording to bring an enforcement action.
- A reverse mortgage sold short: When the estate sells an underwater HECM home under 24 CFR 206.125, closing costs may not exceed the greater of 11% of the sales price or a dollar amount HUD sets by Federal Register notice (eCFR current as of October 27, 2026). Hypothetical example, not an offer: on a $200,000 sale, 11% is $22,000. The Consumer Financial Protection Bureau adds that heirs selling must repay the full balance, or at least 95 percent of appraised value when the balance is higher (reviewed August 28, 2026). Our guides to how reverse mortgages work and selling a home with a reverse mortgage walk through the servicer’s side.
How is a probate home prepared, priced and marketed?
Like any other listing, with one legal wrinkle and one practical one. The legal wrinkle is disclosure. Michigan’s Seller Disclosure Act applies to transfers of 1 to 4 residential dwelling units and exempts transfers ordered by a probate court in administration of an estate, plus transfers by a nonoccupant fiduciary. Read that second exemption closely: it turns on the fiduciary not having occupied the property.
Exempt from the statutory form is not the same as free to stay silent. Fraud law still reaches known defects, an “as-is” clause does not license concealment, and federal law separately requires sellers of pre-1978 housing to give buyers the lead hazard pamphlet, disclose known lead-based paint and hazards, and allow a 10-day inspection opportunity. Our explainer on what a seller’s disclosure is covers what the form asks.
The practical wrinkle is condition: estate homes are often full, dated and mid-project.
- Clear it out before photos: Personal property is estate property, so document what leaves and where it goes. If the decedent had animals, selling a home with pets covers what buyers notice first.
- Decide about unfinished work deliberately: An abandoned remodel worries lenders as much as buyers.
- Expect a distressed-property audience: Investors who focus on buying distressed properties find these listings fast. Treat their offers as a floor.
- Treat commission as negotiable: Since August 17, 2024, offers of buyer-agent compensation cannot be communicated through an MLS, and buyer agents must have written agreements before touring.
Who buys estate homes, and how should you weigh the offers?
Three groups usually bid on an estate house: investors and other cash buyers, buyers who finance it as it stands, and buyers who finance the repairs into their loan. Investors are a large share of the market: Cotality reported on September 3, 2026 that investors accounted for 27% of all U.S. single-family home purchases from March to June 2026, down slightly from 28% at the close of the first quarter.
The National Association of REALTORS reported in its 2025 Profile of Home Buyers and Sellers, released November 4, 2025, that all-cash purchases averaged 26% of all home purchases over the survey year, a record. Weigh a cash offer by its net, not its speed: our guide to selling to a cash buyer lays out the trade.
Condition limits who can finance. Fannie Mae’s Selling Guide B4-1.3-06 says loans secured by properties with a condition rating of C6 are not eligible for sale to Fannie Mae, so a house with safety or structural problems can lose buyers who need conventional financing. A pre-listing inspection tells you which repairs widen the buyer pool.
Some financed buyers can roll repairs into the loan instead. HUD says its Limited 203(k) mortgage lets homebuyers finance up to $75,000 into the mortgage to repair, improve or upgrade the home, and its Standard 203(k) covers major rehabilitation where the repairs cost at least $5,000. An estate house that needs work can still draw these buyers if the listing allows time for the contractor bids and appraisal.
Agent pay is set by agreement; our explainer on how real estate commissions work covers what the estate can negotiate.
How long does a probate home sale take?
Longer than the closing, because the estate’s statutory deadlines outlast the purchase agreement. Michigan does not cap total administration; the court rules assume some estates run past a year and require you to explain why.
| Milestone | Michigan deadline | Why it matters |
|---|---|---|
| Notice of appointment to heirs and devisees | 28 days from appointment | Objections surface early or not at all |
| Inventory with date-of-death values | 91 days from appointment | Sets the valuation your price is measured against |
| Inventory-fee information to the court | 91 days from the date of the letters | The fee itself is payable on or before the estate closes, or within 1 year after probate proceedings begin, whichever comes first |
| Creditor claims after published notice | 4 months from publication | Unpresented claims are barred; without notice, 3 years from death |
| Earliest close of an unsupervised estate | 5 months after appointment | The sworn closing statement cannot be filed sooner |
| Still open at one year | Notice of continued administration within 28 days of the anniversary | Long administrations are expected, not penalized |
Inside that frame the sale behaves normally: 30 to 45 days from accepted offer to closing with a financed buyer, faster with cash. What stretches probate timelines is the front end, getting appointed and clearing title.
How do proceeds get distributed, and what about taxes?
In a fixed order, with heirs last. At closing, payoffs and liens come off the top and the balance goes into the estate account, not to a beneficiary. The estate then pays administration expenses, funeral and burial costs, statutory allowances and allowed claims by priority before distributing what remains. A supervised representative cannot distribute without a prior court order, even though every other power needs no interim order.
Taxes often surprise people in a good way. Property inherited from a decedent generally takes a basis equal to fair market value on the date of death, or the alternate valuation date the representative elects, so an estate that sells promptly frequently shows little gain.3 A separate rule helps a surviving spouse: the $500,000 exclusion on gain is available if the sale happens within 2 years of the spouse’s death and the survivor has not remarried, against $250,000 otherwise, subject to the ownership and use tests. The IRS covers both in Publication 523.
One last thing, plainly. Align Lending is not your listing brokerage and not your law firm; we work the financing side of the same transaction: modeling net proceeds against a next purchase, helping one heir buy out the others with a loan, and pricing bridge financing when someone must close before the estate does. Our overview of the finances of selling shows how sellers model the net.
What Michigan executors should know
Michigan’s Estates and Protected Individuals Code (EPIC) gives personal representatives more independence than the court-heavy probate sales most national websites describe.
- Your letters decide whether you need the court at all: A Michigan personal representative has the same power over title an absolute owner would have, exercisable without notice, hearing, or court order, and may sell land at public or private sale. Limits come from the will, a court order, or a checked restriction on form PC 572.
- Supervised administration restricts the ending, not usually the listing: A supervised representative keeps the ordinary powers without an interim order but cannot distribute without a prior court order, and any other restriction must be endorsed on the letters to bind good-faith third parties.
- The disclosure exemption is narrower than it sounds: Michigan exempts court-ordered transfers and transfers by a nonoccupant fiduciary. A representative who lived in the home does not fit it, and no exemption covers concealing a known defect or skipping federal lead disclosure on a pre-1978 house.
- Two dollar figures to confirm before filing: The inventory fee for a $100,000 to $500,000 estate is $362.50 plus 1/8 of 1% of the amount over $100,000, mortgage debt deducted first. The small-estate procedure carries a statutory $50,000 threshold, inflation-adjusted for the year the decedent died, with mortgage debt up to $250,000 deducted from the real property value.4
County practice varies more than the statute does. Filing habits and hearing calendars differ across Oakland, Wayne and Macomb, one more reason to have a Michigan real estate attorney reading your file instead of a national template.
What Michigan closing steps apply to an estate sale?
- Transfer tax: Michigan Treasury lists the state real estate transfer tax at $3.75 for each $500, or fraction of $500, of the property’s total value, and MCL 207.504 sets the county rate at 55 cents per $500 in counties under 2,000,000 people. Hypothetical example, not an offer: a $250,000 sale carries $1,875 of state tax and $275 of county tax, $2,150 in all. Our transfer tax calculator covers who usually pays.
- Recording at the register of deeds: Each county records the deed and any discharge. The Oakland County Register of Deeds, for example, lists a $30.00 recording fee that includes the $4.00 state survey and remonumentation fee, and requires warranty deeds, land contracts and any deed with a covenant of warranty to be tax certified at the county treasurer’s office first.
- The buyer’s tax bill resets: Buyers will see a different bill than the estate paid. The year after a Michigan home sells, its taxable value resets to half of the assessor’s market value, so the seller’s tax bill is not the buyer’s tax bill. Treasury’s page on changes of ownership explains which conveyances count. Our guide to property tax assessments explains how assessors set the value behind the new bill.
- A public administrator needs the court: MCL 700.3715(2)(a) says that when the personal representative is the state or county public administrator, the representative shall not sell the decedent’s real property without approval of the court.
- Medicaid estate recovery has home protections: MCL 400.112g bars recovery from the home while a spouse, a child under 21 or a blind or permanently and totally disabled child lawfully lives there. Its hardship rules must also include an exemption for the part of the homestead’s value equal to or less than 50% of the average price of a home in the county.
How Align helps when the move is hard
Divorce, a job transfer, an inherited home or a growing family rarely arrive on a convenient schedule. Samantha lives and works in Oakland County and meets people across a desk, not through a call center.
She handles your next loan from the first conversation to the closing table, including refinancing to remove a co-borrower when a home stays with one person.
FAQ: Selling a home in probate
Here are answers to common questions about selling a home in probate.
Can you sell a house in probate without court approval?
Often, yes. In Michigan an unsupervised personal representative holds owner-equivalent power and can sell without a court order, unless the will restricts it or the letters carry a checked real-estate restriction. Other states require a petition and a confirmation hearing. Read your letters before you list, and ask a probate attorney whether an as-is sale changes your exposure.
Who decides the listing price in a probate sale?
The personal representative, anchored to the date-of-death valuation in the inventory. In court-confirmed sales, judges commonly expect the offer to sit within a defined percentage of appraised value, and some jurisdictions allow open overbidding at the hearing. Pricing well below inventory value invites objections, so a discounted cash-buyer offer needs documented comparable sales behind it.
What happens if the home still has a mortgage or a lien?
It gets paid from the sale proceeds at closing, the same as in any other sale. Order the payoff statement early and run a title search before listing, because probate properties frequently carry tax liens, judgment liens, unpaid association dues or estate recovery claims. Liens are not inherited by the buyer; they are cleared so title can transfer. Our guide to conveyance in real estate explains what has to be true for a deed to convey clean.
Can heirs stop the sale of a probate home?
They can object, and in supervised administration the court hears the objection before confirming the sale. Objections usually target price, marketing effort or a conflict of interest. The protection is procedural: get an independent appraisal, market openly, keep every heir informed in writing, and never sell to a related party without an arm’s-length valuation and counsel’s sign-off. See our Selling Situations guide.
Can a personal representative buy the house from the estate in Michigan?
Only with protection. Under MCL 700.3713, a sale in which the personal representative has a substantial beneficial interest is voidable by an interested person unless the will or the decedent’s contract expressly authorized it, the court approved it after notice to interested persons, or another exception applies. A sale to the representative’s spouse, descendant, sibling or parent, the spouse of one of them, or the representative’s agent or attorney is presumed to be affected by a conflict of interest.
Who pays the taxes and insurance on a probate house until it sells?
The estate does. MCL 700.3709 says the personal representative shall pay taxes on estate property and take all steps reasonably necessary to manage, protect and preserve it, which in practice includes insurance, utilities and winterizing. For a reverse mortgage, HUD’s guide for heirs adds that property taxes and insurance remain the estate’s responsibility until title transfers.
Can you sell a probate house before the creditor claim period ends?
Yes. The 4-month window controls when claims are barred, not when you may sell. What the window does not do is wipe out liens: MCL 700.3803(3)(a) says the claims bar does not affect a proceeding to enforce a mortgage, pledge or other lien on estate property. Those are paid at closing either way, and the net proceeds wait in the estate account until claims and expenses are settled.
How do you ask a Michigan probate court to approve the sale of a house?
With SCAO form PC 681, the Petition for Approval of Sale of Real Estate. It asks you to attach the most recent assessor’s statement or tax statement showing the property’s state equalized value, to list outstanding mortgages, taxes and other liens, and to request that the court approve the sale and decide whether a bond must be filed. Restricted letters or a supervised estate usually send you here.
The bottom line on selling a home in probate
Selling a home in probate is an ordinary real estate transaction wrapped in a fiduciary duty and a statutory calendar. Get appointed, read your letters of authority, file the inventory with date-of-death values within 91 days, publish creditor notice so the 4-month bar starts running, and clear title before you list. An unsupervised Michigan estate still cannot close until 5 months after appointment, so the house may sell in 45 days while the estate takes longer. That is normal.
If you’re ready to plan what the proceeds actually buy, whether that’s a next home, a sibling buyout or bridge financing between two closings, talk to Align Lending. We’ll shop your scenario across our lender network and show you the numbers side by side. Call 248-506-5727 or start online. For the legal side of the estate, work with a Michigan real estate attorney.
Footnotes:
1. This article is general information about probate procedure, not legal advice. Probate authority, notice requirements and sale procedures vary by state and by county probate court, and the powers granted in your letters of authority control. Consult a Michigan real estate attorney before listing, signing, or conveying estate property. Return to text.
2. Align Lending is not acting on behalf of or at the direction of FHA or HUD. Home Equity Conversion Mortgage timelines, extension approvals and the 95%-of-appraised-value option are set by HUD and by the servicer’s obligations under 24 CFR 206.125, and they change; confirm the current requirements with the servicer and with HUD before relying on them. Return to text.
3. This is general information, not tax advice. Basis, holding period, deductible selling costs and eligibility for the home sale exclusion depend on your individual circumstances and on elections the estate makes. Consult a qualified tax professional about your situation. Return to text.
4. The $50,000 small-estate figure is the statutory amount in MCL 700.3982; MCL 700.1210 requires it to be multiplied by the applicable cost-of-living adjustment factor for the calendar year in which the decedent died and rounded to the nearest $1,000. Confirm the current adjusted amount in the Michigan Department of Treasury’s annual EPIC cost-of-living notice or with the probate court before relying on it. Return to text.
Sources: personal representative’s power over title equal to an absolute owner’s, exercisable without notice, hearing, or court order, MCL 700.3711. Authority to acquire or dispose of land at public or private sale, for cash or on credit, except as restricted by the will or by order in a formal proceeding, MCL 700.3715(1)(f). Letters of Authority for Personal Representative, SCAO form PC 572 (Rev. 2/13), including the “all acts authorized by law” grant, the real-estate limitation checkbox and the expiration date. Supervised administration as a single in rem proceeding, MCL 700.3501; supervised personal representative retains all powers without an interim order but may not distribute without prior court order, and other restrictions are ineffective unless endorsed on the letters, MCL 700.3504. Notice of appointment to heirs and devisees within 28 days, MCL 700.3705(1). Inventory within 91 days listing date-of-death fair market value and encumbrances, MCL 700.3706. Inventory-fee information within 91 days of the letters and notice of continued administration within 28 days of the appointment anniversary, MCR 5.307(A) and (B). Probate inventory fee schedule, deduction of indebtedness secured by estate real property, and payment of the fee on or before the closing of the estate or within 1 year after commencement of probate proceedings, whichever occurs first, MCL 600.871(1), (2) and (3). Publication of notice to creditors and the 4-month presentation period, MCL 700.3801; claims barred within 4 months of publication, or 3 years after death where notice was not given, MCL 700.3803(1). Earliest filing of the sworn closing statement 5 months after the original personal representative’s appointment, MCL 700.3954. Small estate order threshold of $50,000, deduction of indebtedness up to $250,000, and cost-of-living adjustment, MCL 700.3982 and MCL 700.1210. Seller Disclosure Act coverage of 1 to 4 residential dwelling units, MCL 565.952; exemptions for transfers ordered by a probate court in administration of an estate and transfers by a nonoccupant fiduciary, MCL 565.953(a) and (d). Michigan Construction Lien Act, MCL 570.1101 et seq. Michigan Medicaid estate recovery limited to recipients who began receiving long-term care services after September 30, 2007, MCL 400.112g et seq.; Michigan Department of Health and Human Services. Lead hazard pamphlet, disclosure of known lead-based paint and hazards, and the 10-day inspection opportunity for pre-1978 target housing, 42 U.S.C. 4852d; 24 CFR Part 35 Subpart A; 40 CFR Part 745 Subpart F. Reverse mortgage acquisition and sale, the 30-day period given to the borrower’s estate and heirs, commencement of foreclosure within 6 months of the due date or such additional time as approved by the Commissioner, and sale for not less than an amount set by the Commissioner that may not exceed 95% of appraised value, 24 CFR 206.125; sale of an underwater home for at least 95% of appraised value with the lender accepting the net proceeds as satisfaction of the loan, and 90-day extensions, U.S. Department of Housing and Urban Development, Inheriting a Home Secured by an FHA-insured Home Equity Conversion Mortgage (9/2019). Basis of inherited property equal to fair market value on the date of death or the alternate valuation date, and the $250,000/$500,000 exclusion with the ownership and use tests and the 2-year surviving-spouse rule, IRS Publication 523. Prohibition on communicating offers of compensation through an MLS and the written buyer agreement requirement effective August 17, 2024, National Association of REALTORS®.
This article is for informational purposes only and is not intended to provide legal, financial, or tax advice. Probate procedure, personal representative authority, notice requirements, statutory dollar amounts and timelines change and vary by state and by county probate court; confirm your figures and your powers with the probate court, a Michigan real estate attorney and a qualified tax professional. Figures shown are illustrative, are not a rate quote or an offer of credit, and are subject to change. Align Lending is an independent Michigan mortgage broker, NMLS #2041154.
Sources
Every outside source this guide links to, in the order it appears. How we choose and check sources
- The legal side of selling a houseNolo
- MCL 600.871(1)Michigan Legislature
- Publication 551 (12/2025)Internal Revenue Service
- Guide for personal representativesmichbar.org
- 12 CFR 1026.36(c)(3)Electronic Code of Federal Regulations
- Principal residence exemptionState of Michigan
- MCL 211.7ccMichigan Legislature
- American Land Title Association
- MCL 211.78aMichigan Legislature
- SaysInternal Revenue Service
- Publication 783Internal Revenue Service
- MCL 570.1111Michigan Legislature
- MCL 570.1117Michigan Legislature
- 24 CFR 206.125Electronic Code of Federal Regulations
- AddsConsumer Financial Protection Bureau
- Reportedcotality.com
- ReportedNational Association of Realtors
- Selling Guide B4-1.3-06Fannie Mae Selling Guide
- SaysU.S. Department of Housing and Urban Development
- Publication 523Internal Revenue Service
- State real estate transfer taxState of Michigan
- MCL 207.504Michigan Legislature
- Listsoaklandcountymi.gov
- Changes of ownershipState of Michigan
- MCL 700.3715(2)(a)Michigan Legislature
- MCL 400.112gMichigan Legislature
- MCL 700.3713Michigan Legislature
- MCL 700.3709Michigan Legislature
- Guide for heirsU.S. Department of Housing and Urban Development
- MCL 700.3803(3)(a)Michigan Legislature
- PC 681State of Michigan
- MCL 700.3711Michigan Legislature
- MCL 700.3705(1)Michigan Legislature
- MCL 700.3706Michigan Legislature
- MCL 700.3801;Michigan Legislature
- MCL 700.3954Michigan Legislature
- MCL 700.3982 and MCL 700.1210Michigan Legislature
- MCL 565.953(a) and (d)Michigan Legislature
- 42 U.S.C. 4852dlaw.cornell.edu
- National Association of REALTORS®National Association of Realtors


