SELLING A HOUSE IN PROBATE

The goal of this court-supervised process is to pay the estate’s debts, and to make sure the deceased person’s chosen beneficiaries receive the value they’ve been promised through the will. The conveyance of a home receives special scrutiny, as it’s typically one of the largest assets a person leaves behind.

Under the court’s watch, the executor or administrator must first be officially approved and given the authority to act. Authority is granted once Letters Testamentary or Letters of Administration are issued.

These very important letters contain the name of the Personal Representative and what level of authority they are granted.

The levels of authority are:

• Full Authority
• Limited Authority 

This authority is granted in a concordance with the Independent Administration of Estate Act.

This Administrator, executor  or Executrix person named in the will must:

• Take an inventory of the estate
• Correctly identify and notify potential creditors and beneficiaries

Anyone who rejects their potential claim to the estate must sign a disclaimer of interest.

The Executor or Administrator is the “seller” and is the one who hires the Real Estate Agent. An advisable way the Representative sells a probate home is by hiring a Probate Real Estate Specialist.

The court requires that home selling through California Probate be confirmed by the Court unless the Executor or Administrator has full Authority to Act. If the Court requires confirmation then the Representative or their Probate Attorney must petition the Court.

Your petition to the court will state the details of the Pending Purchase.

What is required of a Real Property sale through Probate?

The probate process functions like a non-probate real property selling, with some exceptions.

• Probate sales require different disclosures be completed than non-probate sales, these special disclosure documents govern probate sales.

• Executors/Administrators are exempt from certain disclosures that are required for non-probate sales. This exemption does not relieve the personal representative from disclosing all known material facts regarding the desirability and value of the property.

• Probate Properties are sold “as-is”, repairs or improvements are not required. Be sure to maintain the property while the real property is listed for sale, i.e. yard maintenance.

• If the Personal Representative has full authority to act under IAEA a Notice of “proposed action” is required once an offer has been accepted.

• The notice of proposed action is required to be given to the beneficiaries of the Estate.

• The beneficiaries have 15 days to approve or reject the sale. If the Estate Representative does not have full authority to act under IAEA, then a Notice of Sale gets published before the sale. The Notice of sale gets published in the newspaper and provides information regarding the sale.

• The sale of the Real Property must not be less than 90% of the appraised value.

• The Personal Representative can enter into an “exclusive right to sell” listing agreement for a period not in excess of 90 days, you may execute an extension of the contract, each extension not to exceed 90 days.  

Hiring an experienced Real Estate Broker that understands the California Probate Process to sell the real property is prudent.

The probate Broker’s experience, knowledge, and extensive training ensure homes sold through probate are efficiently managed during the probate process. 

If you are selling real property through a Probate, hire Sherman, a Certified Probate Real Estate and Trust Specialist. He has the experience in probate and trust sales and will be able to explain the language, the documentation and the steps in the process. Clear communications are vital and hiring a Probate Broker or agent that speaks and understands the Probate language. Sherman will be there for you all the way through the Probate process.