How to Sell a House in Probate in California | Complete Guide

Selling real estate during probate is one of the most common tasks executors face—and one of the most confusing. As a Glendale probate attorney who has guided hundreds of estate sales, I understand the stress executors feel when they need to sell property but aren't sure about the legal requirements, court approval process, or timeline.

The good news? California provides clear procedures for selling probate property, and with proper guidance, you can navigate the process successfully. The key is understanding whether you need court confirmation and, if so, how to obtain it efficiently.

In this comprehensive guide, I'll walk you through everything you need to know about selling a house in California probate, including the court confirmation process, Independent Administration options, step-by-step procedures, timeline expectations, and common pitfalls to avoid.

Why Selling Probate Real Estate Is Different

When you sell real estate during probate, you're not selling your own property—you're selling estate property under court supervision.

Key differences from regular home sales:

Court oversight:

• May require court approval before sale
• Court may need to confirm sale price
• Public overbidding procedure possible
• Additional paperwork and delays

Authority limitations:

• Executor must follow will provisions
• Cannot self-deal (buy property yourself)
• Must act in beneficiaries' best interests
• Subject to fiduciary duty rules

Disclosure requirements:

• Full disclosure to beneficiaries
• Notice requirements
• Accounting for all proceeds

Timeline constraints:

• Can't sell until Letters Testamentary issued
• Notice periods add weeks
• Court hearing schedules affect timing
• Probate timeline already 12-18 months

The good news: Proper planning and using Independent Administration authority can eliminate most court oversight and make the sale nearly as simple as a regular home sale.

Two Pathways for Selling Probate Property

California offers two distinct procedures for selling real estate during probate. Which one applies depends on whether you have Independent Administration authority.

Pathway #1: Sale with Independent Administration (IAEA Authority)

Independent Administration of Estates Act (IAEA) California Probate Code Sections 10500-10592

Process: Sell property without court confirmation, just like a regular home sale

Requirements:

• Executor requested IAEA authority in initial petition
• Court granted full authority
• Sale price is at least 90% of appraised value
• No beneficiary objects

Timeline: Same as regular home sale (30-45 days)

Advantages:

• No court hearing required
• No overbidding procedure
• Faster closing
• Less expensive
• More flexibility

This is the preferred method. Most experienced probate attorneys request IAEA authority in the initial Petition for Probate.

Pathway #2: Sale with Court Confirmation (Traditional Probate Sale)

California Probate Code Sections 10300-10381

Process: Sell property subject to court approval and overbidding procedure

When required:

• Executor doesn't have IAEA authority
• Sale price is less than 90% of appraised value
• Will specifically requires court confirmation
• Beneficiary objects to sale

Timeline: Adds 6-10 weeks to sale process

Disadvantages:

• Court hearing required
• Public overbidding possible (buyers can outbid at hearing)
• More expensive
• Less certainty
• Many buyers avoid probate sales

Let me explain both processes in detail.

Selling with Independent Administration (IAEA): Step-by-Step

This is the simpler, faster method when you have IAEA authority.

Step 1: Obtain Letters Testamentary with IAEA Authority

First requirement: You must have Letters Testamentary granted with Independent Administration authority.

How to get IAEA authority:

• Check box on Petition for Probate (Form DE-111) requesting "full authority"
• Court grants authority at initial hearing
• Letters will state "with full authority under IAEA"

If you didn't request IAEA: You can petition to add it later, but this requires additional hearing and delays.

Step 2: Obtain Professional Appraisal

Requirement: California Probate Code Section 10309

Why required: Sale price must be at least 90% of appraised value to avoid court confirmation.

Who appraises:

• Licensed real estate appraiser (not agent)
• Must be independent (not your listing agent)
• Should be local to property

Cost: $400-$700 typically

Timing: Before accepting offer

Validity: Appraisal should be recent (within 6 months)

What appraiser provides:

• Written appraisal report
• Fair market value estimate
• Comparable sales analysis
• Property condition assessment

Important: This is separate from the probate referee appraisal for Inventory and Appraisal. You need both.

Step 3: Hire Real Estate Agent

Recommendation: Hire agent experienced with probate sales

Agent should understand:

• IAEA procedures
• Disclosure requirements
• Timeline constraints
• Title issues common in estates

Commission: Standard 5-6% negotiable

Listing agreement:

• Executor signs as "Executor of the Estate of [Deceased Name]"
• Not in personal capacity

Marketing:

• Agent can market property normally
• Should disclose probate sale in listing
• Some buyers hesitate at probate sales, so strong marketing important

Step 4: Prepare Property for Sale

Executor responsibilities:

• Maintain property in good condition
• Make necessary repairs
• Keep insurance current
• Maintain utilities
• Handle any tenant issues

Authority: With IAEA, you can authorize repairs and improvements without court approval (use reasonable judgment)

Funding: Pay from estate funds

Consideration: Balance cost of improvements against sale price increase

Step 5: Receive and Evaluate Offers

Process:

• Agent brings offers
• Executor reviews with agent
• Consider:
  • Offer price vs. appraised value
  • Buyer qualifications
  • Contingencies
  • Closing timeline
  • Terms and conditions

Critical rule: Offer must be at least 90% of appraised value

Example:

• Appraised value: $800,000
• Minimum acceptable offer: $720,000 (90%)
• If offer is $719,000: Must use court confirmation procedure

Best practice: Accept offers at or above appraised value when possible

Step 6: Provide Notice to Beneficiaries

Requirement: California Probate Code Section 10580

Must provide: Notice of Proposed Action (Form DE-165)

Timing: At least 15 days before accepting offer

Send to:

• All beneficiaries named in will
• All heirs at law
• Anyone who requested special notice

Content:

• Description of proposed sale
• Sale price and terms
• Statement of beneficiary's right to object
• 15-day period to object

How to send: Certified mail, return receipt requested

What happens:

• If no one objects: Proceed with sale
• If beneficiary objects: May need court approval

Waiver option: Beneficiaries can waive notice and consent to sale

Step 7: Accept Offer and Open Escrow

After 15-day notice period expires:

• Execute purchase agreement
• Sign as "Executor of the Estate of [Name]"
• Open escrow with title company

Provide to escrow/title company:

• Copy of Letters Testamentary
• Death certificate
• Copy of will
• Probate referee appraisal
• Professional appraisal
• Copy of Notice to Beneficiaries

Title considerations:

• Property titled in decedent's name
• Executor has authority to convey via Letters
• Title policy will insure transfer

Step 8: Complete Sale

Standard escrow process:

• Buyer performs inspections
• Buyer obtains financing
• Title work completed
• Executor signs deed
• Escrow closes

Executor signs:

• Grant deed conveying property
• Any required disclosures
• Settlement statement

Signature format: "[Your Name], Executor of the Estate of [Decedent Name]"

Closing timeline: Typically 30-45 days from acceptance

Proceeds:

• Go directly into estate bank account
• Never into executor's personal account
• Account for in estate accounting

Step 9: Report Sale in Estate Accounting

Requirement: Document sale in formal estate accounting

Include:

• Sale price
• Costs of sale (commission, closing costs)
• Net proceeds
• Disposition of proceeds

Timeline: Include in final accounting filed with court

No immediate court report required: Unlike court confirmation sales, IAEA sales don't require immediate court reporting (but include in final accounting)

Selling with Court Confirmation: Step-by-Step

When you don't have IAEA authority or sale price is below 90% of appraised value, you must use the court confirmation procedure.

Step 1: List and Market Property

Same as IAEA: Hire agent, prepare property, market for sale

Disclosure: Must disclose that sale is subject to court confirmation

Challenge: Many buyers avoid probate sales due to uncertainty and overbidding risk

Step 2: Accept Offer

Process:

• Receive offer
• Negotiate terms
• Accept offer "subject to court confirmation"

Important language: Purchase agreement must include:

• "Sale subject to probate court confirmation"
• Acknowledgment that other bids may be made at court hearing
• Buyer's right to increase bid at hearing

Standard form: Many agents use specialized probate sale agreements

Step 3: Prepare Petition for Sale

Form: Petition for Order Confirming Sale of Real Property (no specific Judicial Council form, use DE-270 as attachment)

Must include:

• Description of property
• Proposed sale price and terms
• Buyer information
• Commission agreement
• Terms of sale
• Reason for sale (pay debts, distribute estate, etc.)
• Statement that sale is in estate's best interest

Attach:

• Copy of purchase agreement
• Probate referee appraisal
• Professional appraisal (if obtained)
• Listing agreement
• Title report

Filing fee: $435

Step 4: File Petition with Court

Where: Same probate court handling estate

Timeline: Court schedules hearing 4-6 weeks out

Notice requirements:

• 15 days notice to all interested parties
• Publication in newspaper (15 days before hearing)
• Posting on property (if required by local rules)

Step 5: Publish Notice

Must publish: Notice of Hearing on Petition to Confirm Sale

Where: Newspaper of general circulation

Content:

• Property address
• Sale price
• Hearing date, time, location
• Information about overbidding procedure

Purpose: Alerts potential buyers who might want to overbid

Step 6: Attend Confirmation Hearing

When: 4-6 weeks after filing petition

Who attends:

• Executor
• Executor's attorney
• Original buyer (recommended)
• Any overbidders
• Real estate agent

What happens:

Opening:

• Judge confirms proper notice provided
• Reviews petition and supporting documents

Overbidding procedure:

• If anyone wants to overbid, they make offer
• Must meet minimum overbid requirements
• Bidding proceeds like auction
• Highest bidder wins

Confirmation:

• Judge confirms sale to highest bidder
• Signs order confirming sale
• Buyer has time to complete purchase

Understanding the Overbidding Procedure

California Probate Code Section 10311

Minimum overbid requirements:

Original Offer	Minimum Overbid
Under $10,000	10% more
$10,000 - $19,999	$1,000 + 10% of excess over $10,000
$20,000 - $49,999	$2,000 + 5% of excess over $20,000
$50,000 and over	$3,500 + 5% of excess over $50,000

Example:

• Original offer: $800,000
• Minimum overbid: $3,500 + 5% of $750,000 = $41,000
• First overbid must be: $841,000

Subsequent bids:

• Must increase by at least $1,000 each

The risk: Original buyer can be outbid at hearing

Buyer protection: Original buyer can increase their bid to remain highest bidder

Deposit: Overbidders must have certified check for 10% of bid

Step 7: Complete Sale After Confirmation

After court confirms sale:

• Order becomes final (usually 10 days)
• Buyer completes purchase
• Executor signs deed
• Escrow closes

Proceeds: Same as IAEA sales—into estate account

Timeline: Original buyer usually has 30 days after confirmation to close

If buyer doesn't close: Can sell to backup bidder or re-list property

Comparing the Two Methods

Aspect	IAEA Sale	Court Confirmation Sale
Court approval	Not required	Required
Overbidding	No	Yes (public auction)
Timeline	30-45 days	10-16 weeks
Costs	Standard commission	Commission + court fees
Buyer certainty	High	Low (risk of being outbid)
Buyer pool	Normal	Smaller (many avoid probate sales)
Price achieved	Market price	May get higher price via overbidding
Complexity	Simple	Complex

Winner: IAEA sales are almost always preferable.

Special Situations in Probate Property Sales

Situation #1: Selling Below 90% of Appraised Value

Issue: Even with IAEA, sale below 90% requires court confirmation

Common causes:

• Declining market
• Property condition issues
• Motivated sale to avoid carrying costs

Options:

1. Negotiate higher price to reach 90% threshold
2. Obtain new appraisal if property value has declined
3. Proceed with court confirmation

Strategic consideration: Sometimes court confirmation is worthwhile if property has been sitting on market

Situation #2: Multiple Properties

If estate has several properties:

• Can sell simultaneously
• Each sale requires separate process
• Coordinate with agent and attorney
• Manage overlapping timelines

Consideration: Selling in stages may provide better prices than liquidating all at once

Situation #3: Property with Tenants

Additional complications:

• Tenant rights
• Lease terms
• Security deposits
• Disclosure requirements

Options:

• Sell with tenant in place (investor buyer)
• Wait for lease to expire
• Negotiate tenant buyout
• Sell subject to lease terms

Situation #4: Out-of-State Property

Challenge: California probate doesn't give authority over property in other states

Solution: Ancillary probate in property's state

Process:

• File separate probate case in that state
• Comply with that state's sale procedures
• Coordinate with attorney in that state

Cost: Essentially running two probates

Situation #5: Reverse Mortgage on Property

Complication: Loan becomes due on death

Timeline pressure: Lender may start foreclosure

Options:

• Pay off reverse mortgage from estate funds
• Refinance into new loan
• Sell quickly before foreclosure
• Deed in lieu of foreclosure (if no equity)

Important: Act quickly—reverse mortgage lenders move fast

Situation #6: Property in Poor Condition

Challenges:

• May not appraise well
• Buyers request repairs
• May need substantial work

Options:

1. Sell as-is (probably below appraised value, requiring court confirmation)
2. Make essential repairs (if estate has funds)
3. Sell to investor (often pays cash, closes quickly)

Fiduciary consideration: Balance cost of repairs against increased sale price

Situation #7: Highly Appreciated Property

Tax consideration: Capital gains tax on appreciation since original purchase

Estate benefits:

• Estate gets "step-up in basis" to value at death
• Eliminates capital gains tax on appreciation before death

Example:

• Original purchase price: $200,000
• Value at death: $800,000
• Sale price: $850,000
• Capital gain subject to tax: Only $50,000 (not $650,000)

Strategy: Can be advantageous to sell during probate for this reason

Timeline for Probate Property Sale

IAEA Sale Timeline

Month 1-2: Obtain Letters Testamentary Month 2: List property Month 2-3: Market property, receive offers Month 3: Accept offer, provide 15-day notice to beneficiaries Month 3-4: Complete sale (30-45 day escrow) Total: 4-5 months from death to close

Court Confirmation Sale Timeline

Month 1-2: Obtain Letters Testamentary Month 2: List property Month 2-3: Market property, receive offers Month 3: Accept offer, file petition for confirmation Month 4: Hearing scheduled Month 5: Confirmation hearing, order entered Month 5-6: Complete sale Total: 6-7 months from death to close

Add to overall probate timeline: These sales happen during the 12-18 month probate process.

Costs of Selling Probate Property

Real estate commission:

• Typically 5-6% of sale price (negotiable)
• Split between listing and buyer's agents
• Paid from sale proceeds

Example for $800,000 sale:

• 5% commission = $40,000

Professional appraisal:

• $400-$700

Probate referee appraisal:

• 0.1% of appraised value ($800 for $800,000 property)

Court confirmation costs (if applicable):

• Filing fee: $435
• Publication costs: $300-$500
• Additional attorney fees: $2,000-$5,000

Title and escrow fees:

• Title insurance
• Escrow fees
• Recording fees
• Transfer taxes
• Total typically: 1-2% of sale price

Property maintenance during probate:

• Mortgage payments
• Property taxes
• Insurance
• Utilities
• Repairs and maintenance
• HOA dues

For $800,000 property over 12 months:

• Carrying costs could be $15,000-$30,000

Total costs for IAEA sale: $50,000-$70,000 Total costs for court confirmation sale: $55,000-$80,000

Common Mistakes When Selling Probate Property

Mistake #1: Selling Before Getting Letters Testamentary

Error: Listing property before appointed as executor

Result: Cannot legally sell; must disclose to buyers; delays

Prevention: Wait until Letters issued

Mistake #2: Accepting Offer Below 90% Without Court Confirmation

Error: Closing sale below appraised value with IAEA authority

Result: Sale is voidable; personal liability

Prevention: Always compare offer to appraised value

Mistake #3: Not Giving Proper Notice to Beneficiaries

Error: Failing to provide 15-day Notice of Proposed Action

Result: Beneficiaries can challenge sale; potential litigation

Prevention: Always provide proper notice and wait full 15 days

Mistake #4: Self-Dealing

Error: Executor buys property themselves (or through entity they control)

Result: Breach of fiduciary duty; sale voidable; personal liability

Prevention: Never buy estate property yourself

Mistake #5: Poor Property Maintenance

Error: Letting property deteriorate during probate

Result: Lower sale price; potential liability

Prevention: Maintain property well; keep insurance current

Mistake #6: Accepting First Offer Too Quickly

Error: Accepting low offer without proper marketing

Result: Breach of fiduciary duty to maximize estate value

Prevention: Market properly; wait for multiple offers if possible

Mistake #7: Depositing Proceeds in Personal Account

Error: Putting sale proceeds in executor's personal bank account

Result: Commingling funds; breach of duty; accounting nightmare

Prevention: All proceeds into estate bank account only

Tax Considerations When Selling Probate Property

Capital Gains Tax

Step-up in basis: Property basis "steps up" to fair market value on date of death

Example:

• Original purchase: $300,000 (1990)
• Value at death: $900,000 (2024)
• New basis: $900,000
• Sale price: $920,000
• Capital gain: Only $20,000

Tax rate: Long-term capital gains rate (held over 1 year)

Who pays: Estate (on estate tax return)

Property Taxes

Reassessment: California Proposition 19 may trigger property tax reassessment

When: When property transfers to beneficiaries

Exception: Parent-child exclusion (limited as of February 2021)

Strategy: Consider this when timing sale

Estate Tax

Federal estate tax: Only on estates over $13.61 million (2024)

California: No state estate tax

Most estates: No estate tax liability

Related Articles

Essential guides for California probate:

• California Executor Duties & Responsibilities - Complete checklist of your fiduciary duties including property sales.

• Letters Testamentary California - Legal authority required before you can sell probate property.

• How Long Does Probate Take in California? - How property sales fit into the probate timeline.

• How to File Probate in Los Angeles County - Must complete this before selling estate property.

• How Much Does Probate Cost in California? - Property sales affect estate costs and executor fees.

Get Professional Help Selling Probate Property

Selling real estate during probate involves complex legal requirements, fiduciary duties, and procedures that vary based on your authority and situation. Professional guidance ensures the sale proceeds smoothly, you fulfill your duties properly, and you avoid personal liability.

Call (818) 291-6217 to schedule a consultation at my Glendale office, or complete our probate questionnaire to get started.

As a California probate attorney serving Los Angeles County, I guide executors through probate property sales, help you obtain IAEA authority to simplify the process, coordinate with real estate agents, prepare all required court documents, and protect you from liability while maximizing value for beneficiaries.

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About the Author

Rozsa Gyene (State Bar No. 208356) is a California estate planning and probate attorney serving Glendale, Burbank, Pasadena, and throughout Los Angeles County. With extensive experience in probate real estate transactions, Rozsa helps executors navigate property sales efficiently while fulfilling their fiduciary duties.

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Disclaimer: This article provides general information about selling real estate in California probate and should not be construed as legal advice. Every situation is unique. California laws and procedures change regularly, and this article reflects laws in effect as of January 2025. Consult with a qualified California probate attorney about your specific circumstances.