In Texas, minors cannot legally enter into contracts or sell real estate because they lack legal capacity. However, if a minor inherits or is gifted real estate, there may come a time when selling the property is necessary. Texas law provides a legal pathway for this process under Texas Estates Code § 1351.001. This article outlines how a minor’s property can be sold, the legal limitations, and what steps must be taken to ensure compliance with the law.
Why Can't Minors Sell Their Own Property?
Under Texas law, minors do not have the legal capacity to enter into binding contracts, including real estate transactions. While a minor can inherit or be gifted property, they cannot sell, transfer, or manage it without court approval. Because of this, the Texas Estates Code allows parents or legal custodians to apply for permission to sell a minor’s property under certain conditions.
The Process for Selling a Minor’s Property
If a minor's property needs to be sold, the parent or custodian must file an application with the probate court under Texas Estates Code § 1351.001. Here’s how the process works:
- Determine Property Value – The minor’s interest in the property must not exceed $250,000. If the minor owns a share of a larger property, only their portion is counted toward this limit.
- File an Application – The minor’s parent or legal custodian must apply to the probate court in the county where the property is located.
- Find a Buyer – A sale cannot proceed without an identified buyer. The court requires proof that the property is being sold for a fair price.
- Post a Bond – The custodian or parent may be required to post a bond to ensure the proceeds are properly managed for the minor’s benefit.
- Deposit Funds with the Court – The sale proceeds must be placed into the registry of the court. The money cannot be used freely; withdrawals must be for expenses that directly benefit the minor and require court approval.
What Happens If the Property Exceeds $250,000?
If the minor’s share of the property is worth more than $250,000, the process becomes more complicated. In these cases, a guardianship of the estate must be established. This involves:
- A court-appointed guardian managing the minor’s financial affairs.
- Increased court oversight and restrictions on how the sale proceeds are used.
- Additional legal fees and a longer approval process.
If the minor resides outside Texas, jurisdictional issues may arise, further complicating the sale. An attorney experienced in Texas probate and real estate law can help navigate these complexities.
Conclusion
Selling a minor’s property in Texas requires strict adherence to legal procedures to protect the minor’s interests. If the property is worth less than $250,000, an application can be made under Texas Estates Code § 1351.001 for a straightforward sale. However, for higher-value properties, a guardianship of the estate is required, making the process more complex. If you need guidance on selling a minor’s property, consulting a knowledgeable Texas probate attorney is essential to ensure compliance with state law.
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