Santa Clarita Real Estate

Probate Sales of real property occur when the property owner dies intestate; dying without a valid will. The probate court appoints an administrator to distribute the deceased person’s property according to state law.

The Personal Representaive is a person with the responsibility to act as An executor (named in a will) or an administrator (appointed by the court) and acts on behalf on the decedant, paying the debts and ensuring the beneficiaries recieve the maximum inheritance. (Cal. Prob. Code § 58(a)).

There are some restrictions when purchasing real property in probate sales, among them:

•             Sales are subject to court confirmation
•             Sales price must be at least 90% of its appraised value
•             All terms are subject to court approval
•             Contingent offers are generally not approved by the court
•             Subject to overbid (Cal. Prob. Code § 10503).

A Notice of Sale provides the public with required information concerning the sale and will generally be handled by the attorney for the estate.The Notice is published at least three times over a 10 day period prior to the sale date. (Cal. Prob. Code § 10300; Cal. Gov’t Code § 6063a)

Some probate sales are subject to overbid which means that the original sale could be put into an overbid where another buyer that is interested in the property places a bid over the accepted amount. The initial overbid must exceed the original bid according to the following formula:

• The amount of the original bid, plus
• At least 10 percent of the first $10,000.00 of the original bid; plus
• At least 5 percent of the amount of the original bid in excess of $10,000.00.

Title passes to the successful buyer after all therms of the sale have been met, the court confirms the sale and the personal representative has executed a conveyance to the buyer.offer (Cal. Prob. Code § 10308),  (Cal. Prob. Code § 10313), (Cal. Prob. Code § 10314).

Some probate sales will fall under the Independent Administrations Act which are laws that allow the decedents personal representative to administer the estate without court supervision. Guidelines are in place to determine if the probate sale can be completed in this manner. An estate cannot be administered this way if the decedants will prohibits it or if there are any parties that object to the estate handled under the IAEA. (California Probate Code §§ 10400 et seq.)

This is written for information only, I am not giving legal advice, I am not an Attorney. Should you find yourself in the postion of a probate sale of real property consult with a qualified Lawyer. All probate sales of real property are not the same-in fact no two are alike, if you have specific legal questions, consult with an Attorney. When the time comes to list the home for sale I can definitely help you. 

More Information

• Probate Terms Glossary
• Los Angeles County Courts

Sources, California Association of Realtors; car.org

Superior Court of California County of Los Angeles; lasuperiorcourt.org/probate/main.htm