The steps involved in the two types of probate sales are very different, so it’s important you know which one you fall under (i.e. what authority the court has granted). And then you must thoroughly understand the procedures involved to ensure a successful sale.
The sale of real property is permitted without court supervision, however, there are several requirements of the probate code that must be met.
The sale of real property is allowed without court supervision, however, there are some requirements of the court that differentiates it from a standard sale.
A list price should be determined in order to maximize value to the estate. The parties should then execute a Listing Agreement pursuant to CA Probate Code.
The listing agent should then undertake a tailored marketing plan. All contracts should then be submitted on the appropriate documents to ensure compliance with the probate code.
Once an offer is accepted, certain parties must be notified of the sale via a Notice of Proposed Action. This is an integral step in the probate sale process.
After the notice period, the parties can close escrow. Note: a Full Authority Sale is a more streamlined and simplistic process than Limited Authority.
The sale of real property requires court confirmation, which includes adhering to several additional steps to successfully close the sale.
The petitioner should interview several qualified agents and then choose the one they are most comfortable with and confident in. This is an important step because errors are more costly in probate.
A list price should be determined and then a Listing Agreement should be executed. Note: the final sales price must be within 90% of its appraisal value (set by Probate Referee).
During the marketing phase, a "Notice of Sale" of the property must be published at least 3 times over a period of not less than 10 days before the sale, with a third publication at least 5 days after the first.
Once an offer is accepted, a Report of Sale / Petition for court confirmation must be submitted to the court within thirty days of accepting an offer.
After accepting an offer, the estate's representative must notify certain interested parties prior to the Court Confirmation Hearing.
At the hearing, the sale is subject to overbidders who also want to buy the property. They must bring a cashier's check of at least 10% of the min. bid amount. The final sale is made with no contingencies.
Appx. 15 days after the Court Confirmation hearing, the Court will issue an Order Confirming the Sale and escrow can then close.
A Limited Authority Probate Sale is more complex and the stakes are higher as compared to a Full Authority Probate Sale.
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