Selling a House in Probate California 2025: The Complete Guide

When someone dies and their California home must go through probate, one of the most common questions executors ask is: "Can I sell the house during probate?" The answer is yes - but the process differs significantly from a standard real estate sale.

This comprehensive guide covers everything you need to know about selling probate real estate in California in 2025, including court requirements, timelines, costs, and strategies to maximize your sale price.

Can You Sell a House During Probate in California?

Yes, executors can sell estate property during probate, but they must follow specific California Probate Code procedures. The sale method depends on whether the executor has Independent Administration of Estates Act (IAEA) authority.

Two Types of Probate Real Estate Sales:

1. With IAEA Authority (Faster) - Executor can sell with 15-day notice to beneficiaries, no court hearing required unless objections
2. Without IAEA (Traditional) - Requires court petition, hearing, and often court confirmation with potential overbidding

How to Sell a House in Probate California: Step-by-Step

Step 1: Obtain Letters Testamentary and Authority

Before listing property, the executor must:

• File Petition for Probate
• Attend probate hearing
• Receive Letters Testamentary from court
• Obtain authority to sell real estate (request IAEA if possible)

Timeline: 1-2 months from filing petition to receiving letters

Step 2: Get Property Appraised

California Probate Code requires formal appraisal:

• Court-appointed probate referee appraises the property
• Referee fee: 0.1% of appraised value (e.g., $500 on $500,000 home)
• Appraisal included in Inventory and Appraisal (Form DE-160)
• Must be filed within 4 months of receiving letters

Tip: Get a broker price opinion (BPO) in addition to referee appraisal for current market value

Step 3: Hire Experienced Probate Real Estate Agent

Not all agents understand probate sales:

• Look for agents with probate experience
• Must understand court requirements and deadlines
• Should know how to handle probate disclosures
• Familiar with Notice of Proposed Action procedures

Commission: Standard 5-6% split between buyer/seller agents, paid from estate

Step 4A: Sale With Independent Administration (IAEA)

If executor has full IAEA authority:

1. List Property - Set price at fair market value
2. Accept Offer - Negotiate and accept best offer
3. Notice of Proposed Action - Serve Form DE-165 to all beneficiaries (15-day notice period)
4. Wait 15 Days - Beneficiaries can object during this period
5. If No Objections - Proceed to close escrow
6. If Objections - Must petition court for approval

Timeline with IAEA: 60-120 days from listing to close (if no objections)

Step 4B: Sale Without IAEA (Court Confirmation)

Without independent administration:

1. File Petition for Authority to Sell - Include property description, proposed price, broker info
2. Court Hearing Scheduled - Typically 30-60 days out
3. Notice Requirements - Mail to beneficiaries, publish in newspaper
4. Court Confirmation Hearing - Judge reviews sale
5. Overbid Opportunity - Other buyers can overbid at hearing (minimum 5% over + $500 increments)
6. Court Approval - If no overbids, court confirms original sale
7. Close Escrow - After court order

Timeline without IAEA: 90-180 days from petition to close

Probate Real Estate Sale Requirements California

Mandatory Disclosures:

• Transfer Disclosure Statement (TDS) - Executor must disclose known defects
• Natural Hazard Disclosure - Fire, flood, earthquake zones
• Probate Sale Status - Buyers must understand court approval may be required
• As-Is Considerations - Many probate sales are "as-is"

Price Considerations:

• Minimum Acceptable Offer: With court confirmation, typically 90% of appraised value
• Overbidding at Hearing: First overbid must be 5% higher plus $500, then $500 increments
• No Maximum Price: Can accept offers above appraisal

Special Rules:

• 10% Deposit: Buyers typically required to post 10% deposit
• Longer Escrow: 30-60 days common (vs. 30 days standard sale)
• Contingencies: Court confirmation sales often limit inspection/loan contingencies

How Long Does It Take to Sell a House in Probate?

Typical Timelines:

• IAEA Sale (No Objections): 2-4 months
• IAEA Sale (With Objections): 4-6 months
• Court Confirmation Sale: 4-8 months
• Probate Sale + Property Cleanup: Add 1-3 months

Factors Affecting Timeline:

• Court calendar availability (LA County often 60-90 days between hearings)
• Property condition (repairs needed)
• Market conditions (hot vs. cold market)
• Buyer financing (cash vs. loan)
• Beneficiary disputes

Costs of Selling House in Probate California

Estate Pays:

• Probate Referee Fee: 0.1% of appraised value
• Real Estate Commission: 5-6% of sale price
• Title/Escrow Fees: ~$2,000-$5,000
• Attorney Fees: Statutory fees on estate value
• Property Taxes: Pro-rated to close date
• HOA Fees: If applicable, paid current
• Repairs/Staging: If executor chooses to improve property
• Ongoing Costs: Utilities, insurance, maintenance during probate

Example: $500,000 house

• Referee fee: $500
• Commission (6%): $30,000
• Title/Escrow: $3,000
• Total selling costs: ~$33,500 (6.7%)

Tax Considerations:

• Capital Gains: Generally none due to step-up in basis at death
• Reassessment: Property taxes reassessed at sale (Prop 13 base year changes)
• Estate Taxes: Federal estate tax only if estate exceeds $13.61 million (2024)

Can Beneficiaries Stop a Probate Sale?

Yes, beneficiaries have rights:

• Can object to Notice of Proposed Action (IAEA sales)
• Can bid at court confirmation hearing
• Can petition court if sale price too low or terms unfair
• Can remove executor for self-dealing or mismanagement

But beneficiaries CANNOT:

• Veto sale if court approves
• Demand sale to specific buyer
• Live in property rent-free during probate
• Prevent sale needed to pay estate debts

Selling Probate Property to Pay Debts

Executors must sell if:

• Estate has insufficient liquid assets to pay debts
• Beneficiaries request distribution but cash not available
• Property maintenance costs exceeding value

Priority of Debts (Probate Code 11420-11421):

1. Funeral expenses (reasonable)
2. Administration costs (attorney, executor fees, court costs)
3. Secured debts (mortgages, deeds of trust)
4. Taxes
5. Medical expenses (last 90 days of life)
6. General creditors

Probate Sale vs. Living Trust - Why Trusts Avoid This

With Living Trust: Successor trustee can sell property immediately after death with no court involvement, taking 30-60 days.

With Probate: 4-8+ month process with court oversight, higher costs, and public proceedings.

This massive difference is why estate planning attorneys recommend living trusts for California homeowners.

Tips for Maximizing Probate Sale Price

1. Clean and Stage Property - First impressions matter; invest in cleanup
2. Make Minor Repairs - Fix obvious issues to avoid buyer objections
3. Price Competitively - Overpricing delays sale and costs estate money
4. Market Widely - Work with agent who actively markets probate properties
5. Accept Strong Offers - Don't wait for "perfect" offer; time costs money
6. Communicate With Beneficiaries - Get buy-in early to avoid objections
7. Consider Cash Buyers - Faster close, no loan contingencies
8. Disclose Everything - Avoid post-sale disputes

Common Probate Real Estate Mistakes

Avoid These Errors:

❌ Letting family live in house rent-free (wastes estate assets) ❌ Failing to maintain property (damage reduces value) ❌ Not getting IAEA authority (adds months to process) ❌ Pricing too high (property sits, carrying costs mount) ❌ Using inexperienced agent (unfamiliar with probate procedures) ❌ Selling to family below market value (breach of fiduciary duty) ❌ Not disclosing property defects (executor personal liability) ❌ Spending estate money on unnecessary improvements

Do You Need an Attorney to Sell House in Probate?

Highly recommended for several reasons:

• Navigate complex Probate Code requirements
• Prepare court petitions and notices correctly
• Advise on IAEA vs. court confirmation
• Protect executor from personal liability
• Handle beneficiary disputes
• Ensure compliance with all legal requirements

Attorney Fees: Statutory fees based on estate value (e.g., $13,000 for $500,000 estate)

Frequently Asked Questions

Q: Can I sell my parent's house before probate? A: No. You must wait for letters testamentary. Selling without authority is void.

Q: What if house sells for more than appraisal? A: Great! Accept the higher offer. No limit on sale price.

Q: Can I buy the house myself as executor? A: Technically yes, but requires full disclosure, court approval, and fair market price. Self-dealing risks removal.

Q: What if house won't sell? A: Lower price, make repairs, or rent it temporarily. Executor can't abandon estate property.

Q: Do I pay capital gains tax on inherited house? A: Generally no, due to step-up in basis to date-of-death value.

Probate Real Estate in Los Angeles County

Los Angeles County has specific procedures:

• File sales at Stanley Mosk Courthouse (downtown LA) or Glendale Courthouse
• Busy probate calendars mean 60-90 day wait for hearings
• Strong real estate market means competitive bidding
• High property values make IAEA authority even more valuable

Get Expert Help With Probate Real Estate Sales

Selling a house during California probate involves complex legal requirements, strict deadlines, and significant financial stakes. Working with an experienced probate attorney ensures:

✓ Proper court procedures followed ✓ Executor protected from liability ✓ Sale completed efficiently ✓ Maximum value obtained for estate ✓ Beneficiaries kept informed

Need to sell a house in probate? Our Los Angeles County probate attorney has helped executors sell hundreds of probate properties. We guide you through every step, from filing petitions to closing escrow.

Free consultation: (818) 291-6217

With over 25 years of probate experience in Los Angeles Superior Court, we make the process as smooth as possible while protecting your interests as executor.

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Attorney Rozsa Gyene (State Bar #208356) has handled 1,000+ probate cases in Los Angeles County. This guide reflects California law as of January 2025.