If you’re wondering, “Can a house be sold while it is in probate in California CA?” the answer is a resounding “Yes!” However, as with any property transaction, it’s crucial to follow the specific laws and regulations in your state. The probate court will oversee each phase of the sale, and as the executor, you will need to ensure that all terms of the sale are approved by you. While the process can be intricate, having a clear understanding of the requirements can help streamline the experience.
Can A House Be Sold While In Probate In California CA?
Appointment of Administrator/Executor
When a will specifies an individual to serve as the executor, and that person agrees to take on the role, they are officially appointed as the executor of the estate. However, if the will does not name an executor, then the court will typically appoint a close relative or another suitable individual to assume the role of administrator. This process ensures that someone is in charge of managing the estate’s affairs, regardless of whether a designated executor is named.
Appraisal
The subsequent step involves obtaining an appraisal for the property. It’s crucial to select a licensed and trustworthy appraiser for this task. Since the property must be listed at a price that is no less than 90% of its appraised value, it’s important to work with someone who can accurately determine that value. This ensures that you set a price that aligns with the requirements while maximizing your return.
Sale
This stage marks the turning point in addressing the question, “Can a house be sold while it is in probate in California, CA?” The journey begins with your real estate agent listing the property on a multiple listing service (MLS), clearly indicating that it is a probate sale. This exposure helps potential buyers understand the nature of the transaction and opens the door to offers.
When a potential buyer presents an offer, they typically include a 10% deposit. At this point, you have the option to either accept or decline the proposal. Should you choose to accept, the offer will still need to undergo court confirmation. This means you must forward the offer to your probate attorney, who will then submit it to the court for approval. Once all parties are in agreement, the court will schedule a date to finalize the sale.
Once the offer on the probate property is accepted and receives court confirmation, the next step is to send a Notice of Proposed Action to all heirs. This important document outlines the specific terms and conditions of the proposed sale. Following this, heirs are given a period of 15 days to examine the notice and voice any objections they may have. If there are no objections raised by the heirs, the sale can proceed without the need for a court hearing.
Overbidding
Now, things can become a bit intricate. Prior to the court officially confirming the initial buyer’s offer, the judge will inquire whether anyone present in the courtroom wishes to place a bid on the property. If there are no takers, the sale will move forward as previously outlined.
In the event of an overbid, the original buyer’s 10% deposit must be returned before proceeding with the new sale at the updated bid price. Once the overbid is accepted, the new buyer is required to provide a 10% deposit, which must be submitted as a cashier’s check. This check for the accepted overbid deposit is presented to the executor or administrator during the acceptance hearing for the winning bid.
Once the court has confirmed and approved the sale, a contract can be executed. However, this contract is unique as it must be free of any contingencies. Additionally, the escrow process typically wraps up swiftly after the hearing, usually within a 15-day timeframe.
Navigating the sale of a house in probate can be quite intricate due to various regulations and procedures. It is highly recommended to reach out to an attorney who specializes in probate law for tailored guidance and support throughout the process.