Selling real estate during probate in California is possible, but it comes with rules and court oversight that must be followed carefully. The process is not as simple as listing the property for sale, and the steps vary depending on whether court approval is required.
At Price Law Firm, APC, we have more than 23 years of experience guiding Redlands families through probate and helping them manage inherited property with clarity and confidence.
This guide explains when a house can be sold, what approvals the court expects, and how to move forward in a way that protects the interests of the estate and its beneficiaries.
Steps for Selling Real Estate During California Probate
With a plan and a clean paper trail, a probate sale can run smoothly. Below is the typical path from valuation to closing.
- Get a professional appraisal.
- File a petition asking the court to approve a sale.
- List and market the property at a fair price.
- Secure the buyer’s deposit, commonly ten percent.
- Publish the required newspaper notice of the sale.
- Attend the court hearing for confirmation and overbids.
- Close escrow and move sale proceeds into the estate account.
- If outbid, refund the original buyer’s deposit.
Each step builds on the last. Keep records, communicate with heirs, and stick closely to the timelines given by the court.
Appraisal of the Real Estate
Start by hiring an independent, qualified appraiser to determine fair market value. In probate, a Probate Referee often provides the official valuation used by the court, so keep that report handy. A current appraisal supports pricing, notice requirements, and later court confirmation.
Once you have a solid value, you are ready to involve the court for permission to sell.
Petitioning the Court for Approval
File a petition with the probate court requesting authority to sell the property. Attach the appraisal report, your proposed terms, and identify whether you plan to sell on the open market or by auction.
Complete information beats speed here. Include the address, legal description, any liens, and the intended listing strategy, so the judge has a full picture.
After the petition is filed, watch your mail and the court docket for the hearing date or any requests for more details.
With the petition in, you can prepare the property for a public listing.
Listing and Marketing the Property
List the home at a fair price supported by the appraisal. In all advertising and conversations, tell buyers the sale is subject to court confirmation unless you have expanded authority under the Independent Administration of Estates Act.
To boost interest and get stronger offers, use a mix of channels:
- Local MLS listing with strong photos and clear probate notes.
- Online real estate portals, plus social media posts.
- Yard signage, open houses, and direct outreach to agents with probate buyers.
Good marketing reduces days on the market and helps meet the court’s fair value standard.
Once an offer is accepted, shift your focus to deposits and required notices.
Securing a Deposit
Before the court hearing, collect a buyer’s deposit, typically ten percent of the purchase price. Hold it in a neutral escrow in line with the purchase agreement.
A clean deposit trail shows the court you have a committed buyer.
Advertising the Sale
Publish notice of the sale and the accepted price in a local newspaper as required. This invites the public to appear at the hearing and overbid if they choose.
The goal is simple: get the best price for the estate while following the statute.
Court Hearing and Confirmation
At the hearing, the judge reviews your petition, the appraisal, and the offer. Other interested buyers can appear and overbid, which can raise the final price for the estate.
Courts use set increments for overbids. Many counties follow a first overbid equal to the accepted price, plus ten percent of the first $10,000, plus five percent of the balance, then further bids in set steps. The winner must present a cashier’s check deposit at the hearing, and per Probate Code Section 10309, and the accepted offer must be at least ninety percent of the Probate Referee’s figure.
When the judge confirms the sale, escrow can move to closing on those approved terms.
With the court’s green light, finish the transaction with careful accounting.
Completing the Sale
Close escrow, pay approved costs of sale, and deposit net proceeds into the estate account. Keep copies of the final settlement statement, title policy, and any lien releases.
After closing, update the court file and your inventory to reflect the sale and proceeds.
Refunding the Deposit (If Necessary)
If someone overbids and wins at the hearing, return the original buyer’s deposit promptly. If the original buyer prevails, apply the deposit to the purchase price at closing.
Clear communication here helps avoid frustration and disputes.
The two paths below show how a sale with court confirmation compared to a sale under expanded authority.
Table: Probate Real Estate Sale Paths in California
| Topic | Court-Confirmed Sale | IAEA Sale without Confirmation |
| Authority needed | Specific court approval to sell and to confirm buyer | Independent powers granted in Letters, no confirmation hearing if rules are met |
| Notice to heirs | Formal notices, plus newspaper publication | Notice of Proposed Action to all beneficiaries at least 15 days before closing |
| Pricing floor | Offer must be at least 90% of Probate Referee value | Fair market price, no 90% rule if no confirmation is required |
| Overbids | Allowed at hearing with set increments | No court overbidding |
| Buyer deposit | Cashier’s check at hearing, usually 10% | Customary escrow deposit per contract |
| Timeline | Longer, depends on court calendar | Often faster if no objections arrive |
Selling Real Estate Without Court Confirmation
Some estates use the Independent Administration of Estates Act, called IAEA, which grants independent powers in the Letters. With those powers, a Personal Representative can sell a home without a confirmation hearing if statutory notice is given and no one objects.
Send a Notice of Proposed Action to all beneficiaries at least 15 days before the sale. If no written objections arrive within that window, the sale can close without court oversight under California law.
If an objection lands, move the matter to a court hearing or adjust the plan. Keeping beneficiaries informed early often prevents surprises later.
Key Considerations for Managing Probate Real Estate
Real estate needs hands-on care while the case is open. The points below help preserve value and keep the file clean.
- Confirm how the title is held. Joint tenancy, community property with survivorship, or trust ownership can bypass probate.
- Secure the property by changing locks, winterizing if needed, and notifying the insurance carrier of the owner’s passing.
- Order a valid appraisal for fair market value and any estate tax reporting.
- If the home is a rental, collect rent, keep utilities active, and handle basic maintenance.
- Identify and resolve liens or debts tied to the property before distributing assets.
- Follow the will’s instructions, or if none, follow California intestacy rules for transfer or sale.
- After debts, taxes, and costs are paid, the Personal Representative distributes the remaining proceeds or property to the right heirs or beneficiaries.
When questions pop up, document the issue, outline options, and communicate your plan to interested parties. Small updates go a long way toward trust and transparency.
The Personal Representative’s Duty
If you are the Personal Representative, you owe heirs a fiduciary duty. That duty means loyalty, prudence, and full accounting, even when decisions are tough.
A breach, even by accident, can trigger penalties and fines. When in doubt, ask for guidance before signing a contract or spending estate funds.
How Price Law Firm, APC, Can Assist With Your Probate Needs
For over 23 years, Price Law Firm, APC, has helped Redlands families handle probate sales, protect inheritances, and keep estates moving. We work to spot issues early, line up the right paperwork, and keep you updated at each step. If a dispute starts brewing, we address it quickly and aim for a practical fix.
If you want to talk through your situation, we welcome your questions and offer clear next steps. Call us at 909-328-7000 or reach us through our Contact Us page to schedule a consultation. Our team is focused on results that protect your family’s legacy.
