Being named a Personal Representative in Maryland is an honor — but it also comes with real legal and financial responsibility. One of the most consequential duties a PR faces is handling the sale of real estate from the estate. Unfortunately, it's also one of the areas where well-meaning people make costly mistakes.
This post walks through the seven most common errors I see as a Maryland probate real estate specialist — and what you can do to avoid them.
Selling Before Receiving Court Authorization
In Maryland, a Personal Representative generally needs court approval before selling estate real property — unless the will specifically grants the power of sale. Acting without this authorization can expose you to personal liability and may invalidate the transaction entirely.
What to do instead: Work with a probate attorney to confirm your authority before listing the property. If you don't have power of sale in the will, file a petition with the Orphans' Court first.
Pricing Based on Emotion, Not the Market
It's natural to feel that a family home is worth more than the market will bear. But as a PR, your legal duty is to the estate and its heirs — not sentiment. Overpricing leads to a property sitting on the market, which can raise red flags with buyers and ultimately result in a lower sale price.
What to do instead: Request a comparative market analysis (CMA) from a realtor who specializes in probate properties. They'll understand how to price estate homes accurately, including accounting for condition and as-is sales.
Making Expensive Repairs Without Heir Agreement
PRs sometimes invest heavily in renovations hoping to increase the sale price — only to find the repairs didn't add enough value to justify the cost, or that heirs disagree about the expenditures. Estate funds spent on repairs are subject to scrutiny during the final accounting.
What to do instead: Get a professional opinion on whether repairs will yield a return. In many cases, selling as-is to a prepared buyer is the smarter financial move — and keeps the process simpler for everyone.
Not Disclosing Known Defects
Maryland law requires sellers to disclose known material defects. Even in an estate sale, a PR can face legal action if they fail to disclose issues they were aware of — a leaking roof, foundation problems, or unpermitted additions, for example.
What to do instead: Be transparent. Document what you know, and consider an inspection so you're not caught off guard. Buyers who know what they're getting into are less likely to back out or pursue legal remedies later.
Using a Realtor Unfamiliar With Probate
Probate real estate sales are not like typical home sales. They involve unique timelines, court oversight, heir dynamics, and paperwork requirements. A realtor who doesn't understand these nuances can inadvertently cause delays, compliance issues, or family conflict.
What to do instead: Choose a realtor with specific experience in Maryland probate transactions. They should understand the Orphans' Court process, be comfortable working alongside attorneys, and know how to communicate sensitively with grieving families.
Distributing Proceeds Before Settling Debts
One of the most serious mistakes a PR can make is distributing sale proceeds to heirs before all estate debts, taxes, and expenses have been paid. In Maryland, creditors have a right to be paid from the estate before heirs receive anything. Distributing early can leave you personally on the hook.
What to do instead: Work closely with your probate attorney to establish a proper order of payment. Don't make any distributions to heirs until you have a clear picture of all outstanding obligations.
Going It Alone
Many PRs try to manage the entire process themselves to save money or time. But probate in Maryland involves legal deadlines, court filings, tax considerations, and complex family dynamics. A misstep in any of these areas can lead to delays, disputes, or personal liability.
What to do instead: Build a team. A probate attorney handles the legal side. A probate-experienced CPA handles taxes. And a probate real estate specialist handles the property — from pricing and listing to negotiating and closing.
The Bottom Line
Serving as a Personal Representative is a serious responsibility. The good news is that with the right guidance, the real estate portion of the process doesn't have to be stressful. Avoiding these common mistakes protects you legally, honors the decedent's wishes, and helps the estate close efficiently.
If you're a Personal Representative dealing with estate property in Maryland and you're not sure where to start, I'm here to help. No pressure, no obligation — just a straight conversation about your situation.
Have questions about your specific situation? Call Wayne at 443.722.2095 for a free 20-minute consultation.
