Executor
Definition and meaning of Executor in real estate.
An executor is a person named in a will or appointed by a probate court to manage and distribute a deceased person's estate. In real estate, the executor is responsible for managing, maintaining, and selling any property owned by the deceased according to the will's instructions.
In more detail
The executor has a fiduciary duty to act in the best interest of the estate and its beneficiaries. Their duties often include paying outstanding debts, settling taxes, and preparing real estate for sale. To sell a property, the executor must obtain authorization from the probate court, a process that can take several months depending on local laws.
They must ensure the home is maintained, insured, and secured until it is transferred or sold. Buyers purchasing a home from an estate will deal directly with the executor, who signs the purchase contract on behalf of the deceased.
Key facts
| Category | Legal, Titles & Closing |
|---|---|
| Fiduciary duty | Must manage the estate's assets honestly and in accordance with the will |
| Appointed by | Designated in a will and confirmed by a probate court judge |
| Typical timing | Active from the opening of probate until the final distribution of assets |
An executor hires a real estate agent to list and sell a deceased parent's home, using the proceeds to pay off the estate's remaining debts before distributing the rest to the heirs.
Frequently asked questions
Can an executor sell real estate below market value?
Generally, no. Executors have a legal obligation to obtain a fair price for the estate's assets, and selling below market value can lead to lawsuits from beneficiaries.
Does an executor need permission from beneficiaries to sell a house?
This varies by state and the terms of the will, but court approval or beneficiary consent is often required to proceed with a real estate sale.
Related terms
Sources & references
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