Selling a house in probate

In South Orange County the house is usually the largest asset in the estate, and selling it is often the step that controls the timeline. How the sale works depends on the authority the court gave the personal representative.

Full authority under the IAEA

Most executors ask for full authority under the Independent Administration of Estates Act. With it, the house can be listed and sold much like a normal sale. Before closing, the personal representative serves a Notice of Proposed Action on the heirs, who have at least 15 days to object. If no one objects, the sale closes without a court hearing.

Court confirmation sales

If the representative has limited authority, or someone objects, the sale needs court confirmation:

• The price must be at least 90% of the appraised value, with an appraisal within one year of the sale.
• The court holds a confirmation hearing where other buyers can overbid. The first overbid must exceed the accepted price by 10% of the first $10,000 plus 5% of the rest.
• The court sets the broker's commission.

Confirmation sales take longer and can scare off buyers, so we work to get full authority from the start where the will and family allow it.

Before you list

• Keep homeowner's insurance in force. Many policies limit coverage on a vacant home.
• Keep paying the mortgage, HOA dues, and property taxes from estate funds.
• Get the HOA's resale documents early. In planned communities they can take weeks.
• Decide on repairs carefully. Estate money spent on the house must be justified in the accounting.

How we help

We obtain the right authority, prepare and serve the notices, coordinate with the listing agent, escrow, and title, and handle the confirmation hearing if one is needed.