Real property is sold in probate court when a homeowner dies intestate or without bequeathing their property. The court must step in to make sure the property is marketed effectively for the best price possible, and this requires certain procedures followed. Probate laws differ from state to state. It is important to retain an experienced broker familiar with Probate protocol. Steve Davis Team has handled hundreds of probate transactions and are Certified Probate and Trust Specialists.
Dealing with death is difficult. When probate is tied in, the process can be overwhelming. Many times, real property is held in the estate and must be sold. It is important to have experienced sales representation. In the State of California, an administrator or executor is appointed by the court to assess and manage all assets of the estate. This includes real property. If heirs agree to sell, there are required steps before listing any property.
Probate must first be defined as formal or informal. A formal process requires attorney representation as the court approves every step of the sales process which can be lengthy, usually over 6 months, as well as costly. An appraisal is required to determine base price for listing at which time executor will petition the court for sale. The property is to sell for a minimum of 90% of the appraisal estimate. Upon receipt of an offer with agreed upon terms, a court confirmation hearing is scheduled. The property must continue to be advertised until date of the hearing so other buyers will have the opportunity to make an offer or bid at the court hearing. If there is a bidding process between additional buyers and the original buyer, the court conducts the overbidding process. The hearing concludes when a buyer is confirmed by the court. The estate representative then completes the sale per the terms of the contract.
Informal probate has less restrictions on the executor, and an attorney is not required. This is allowed under the Independent Administration of Estates Act (IAEA), and can be used if real property is held in joint tenancy, as survivorship community property, or is in a living trust. The real property can be sold with no court interference or bidding auction.
As a representative in the sale of probate properties, there are specific contracts, forms, due diligence, disclosures and protocol involved. California Probate Code provides specific instructions to buyers and sellers. The overall objective is to properly manage the maximum benefit for heirs while protecting interests of the decedent.
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Steve Davis Estates is a licensed real estate broker (00986011)independently owned and operated in the State of California, and abides by Equal Housing Opportunity laws. All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdraw without notice. No statement is made as to accuracy of any description. All measurements and square footages are approximate. Exact dimensions can be obtained by retaining the services of an architect or engineer. This is not intended to solicit property already listed.
