When a property owner passes away, their assets, including any real estate they own, will typically be transferred to their heirs through a legal process known as probate. In California, if the decedent’s estate includes real property, it may be sold through a probate sale.
Here’s an overview of the probate sale process in California:
Petition for Probate:
The first step in a probate sale is to file a petition for probate with the court. This starts the legal process of settling the estate. The court will appoint an executor or administrator to manage the estate.
The property will need to be appraised to determine its fair market value. The court will use the appraised value to set the minimum sale price for the property.
Listing the Property:
The executor or administrator will work with a real estate agent to list the property for sale. The property must be listed for at least 90 days and marketed in a way that will attract potential buyers.
Accepting an Offer:
Once an offer is received, it must be approved by the court. The court will set a date for a hearing where the offer will be reviewed. Interested parties, including heirs, may object to the sale.
If there are multiple offers, interested parties may have the opportunity to overbid on the property at the hearing. The bidding process can continue until there are no more bids.
Once the sale is approved, the property will go into escrow. The buyer will need to provide a deposit and complete the purchase within a specified time frame.
After the sale closes, the court will confirm the sale and the proceeds will be distributed to the estate’s beneficiaries.
It’s important to note that the probate sale process in California can take several months to complete. It’s also important to work with an experienced real estate agent who understands the unique challenges of probate sales. With the right guidance, a probate sale can be a straightforward way to sell a property and settle an estate. Although Fair Trade Real Estate does not handle any probate situations or sales, we are always looking for a way to help!
Visit the links below for more information on probate sales:
Inheriting a Probate Property – What is the first step?
Call Fair Trade Real Estate @ (949) 317 – 2320 and find out how to sell your home quickly and easily!