Probate Real Estate Specialist

As a seasoned real estate agent with over 20 years experience, and a certified probate and trust specialist with the California Association of Realtors, I've honed my skills in marketing, negotiation, and communicating effectively with clients. My team and I are here to help navigate the emotional and complex challenges of selling a loved one's home in probate with expertise and compassion. Whether you're an executor, administrator, conservator or probate attorney, we are here to help and assure you that you're in good hands every step of the way.

COMMON QUESTIONS IN REGARDS TO PROBATE REAL ESTATE LISTINGS

WHAT IS PROBATE?

Probate is the legal process by which a deceased person’s assets are distributed to their beneficiaries or heirs, and their debts and other obligations are settled. The process involves validating the deceased person’s will (if they have one) and appointing an executor or administrator (Personal Representative) to manage the estate.

HOW LONG DOES A TYPICAL PROBATE TAKE?

The Probate process takes approximately 9 to 12 months to complete, however an estate property may be listed for sale once the Personal Representative is appointed by the court, which typically takes around 60 days.

HOW LONG DOES A PROBATE REAL ESTATE SALE TAKE TO CLOSE?

In probate, the authority granted to the Personal Representative can be either full or limited, depending on the circumstances of the case, and this will affect the time it takes to close the transaction. You're looking at 3 to 7 months, depending on which authority is granted, from when the Petition for Probate was filed.

WHAT IS THE DIFFERENCE BETWEEN FULL AND LIMITED AUTHORITY?

Full authority means the Personal Representative has complete control over the estate and can make all decisions regarding the distributions of assets, payments of debts, and other matters related to the estate administrations. This type of authority is usually granted when the Personal Representative has been nominated by the deceased person in their will, and there are no objections from the beneficiaries or other interested parties.

A probate real estate sale under full authority is more complex than your typical real estate sale, but less complex and and a shorter time period than limited authority. In order to list the property 2 items are needed, the Order for Probate, signed by the judge and Letters (Letters provide the legal authority to manage the estate and carry out the wishes of the deceased person.) To close the escrow you'll need the NOPA - Notice of Proposed Action (15 day notice given from accepting an offer on the property). There are also additional probate specific addendums needed for the transaction. Escrow can usually be closed in approximately 90 - 120 days from the Probate Petition.

Limited authority, on the other hand, means that the Personal Representative has only limited powers to act on behalf of the estate. In a probate real estate sale under limited authority, once there is an accepted offer it will need to be confirmed by the court and is subject to overbid. This is a much more complex transaction.

Once an offer is accepted the buyer is purchasing as-is and is removing all contingencies upfront. For this reason, all the disclosures are reviewed and signed up front. The buyer will usually also have the opportunity to inspect the property before an agreement is signed. The required down payment is 10% and is non-refundable unless the offer is overbid at the court confirmation or the price is not confirmed. The price is required to be at least 90% of the Probate Referee's appraisal.

The property stays an active listing with the overbid price becoming the new listing price. Anyone that is interested in purchasing the property has the option of overbidding at the court confirmation date, which will be published on the listing. The starting overbid price is the purchase price + 5% + $500, and if the property is overbid it becomes an auction with the next bid price at the discretion of the judge.

The court confirmation date will usually be several months after notification of the accepted offer. Escrow does not open until after the court confirmation and overbid process. Close of Escrow is typically 30 - 45 days from there making the total time frame from the Probate Petition around 6 - 7 months.

THE PROBATE PROCESS

File the “Probate Petition” at the courthouse (this is the start of the probate process)
Notice of the first court hearing date published in the newspaper of general circulation in the decedent’s resident city and notice mailed to all heirs and named beneficiaries (this happens immediately after the filing of the Probate Petition)

First court hearing date is held (this takes place approximately 5 weeks after filing the Probate Petition)

Issued Bond-- if ordered by the judge (this is essentially insurance for the estate in the event of mismanagement by the personal representative)

"Duties and Liabilities of Personal Representative" is filed with the court.

“Order for Probate” signed by the judge appointing the Personal Representative (this is approximately 60 days after filing the Probate Petition)

"Letters" are issued by the court--this is the golden ticket, the passport for the personal representative to conduct business on behalf of the estate (this is approximately 60 days after filing the Probate Petition)

Personal Representative (PR) gathers all assets and inventories for safe keeping (PR can begin to close escrow depending on whether full Authority or Limited Authority was granted by the court)

“Notice to Creditors” form sent to all reasonably known creditors (creditors have 4 months to file their claim with the court)

Real estate properties are sold if necessary (3rd to 4th month after the Probate Petition is filed, if Full Authority is granted under the IAEA)

Litigation of any issues or disputes among heirs/creditors related to the estate.

“Inventory & Appraisal” form filed with the court (4^thto 6^th month)(appraisal is done by a Probate Referee).

If Limited Authority is granted by the court, then the court Confirmation process is necessary to sell any real estate.

“Change in Ownership Statement Death of Real Property Owner” Form filed with the County Recorder (4^thto 6^{th month})

“Claim for Reassessment Exclusion for Transfer between Parent and Child” Form filed with the County Recorder (4^thto 6^thmonth)

Debts are paid (4^th to 8^thmonth)(e.g., Med-Cal is reimbursed, credit card debt is paid)

Taxes paid (6^thto 12^th month)

Petition for Final Distribution is filed (8^th to 12^th month)

Second court hearing date(9^th to 12^thmonth)

Order signed by the judge allowing distribution to heirs (9^th to 12^th month)

Final Distribution to heirs/beneficiaries (9^thto 12^th month)

Case closed(10^th to 12^th month)