A Guide to Selling a House in Probate in California

Selling an inherited estate or house in probate in California can be a complicated and messy procedure. However, it doesn’t have to be. After you go through the probate procedure, you can sell the home as-is and get it off your hands quickly. Let’s take a closer look at what it takes to sell a house in probate.

Table of Contents

What Is a Probate Sale?

When someone dies and leaves an inheritance or assets behind, those assets go through probate. The assets are first used to settle outstanding debts and to pay creditors. The remaining assets are then distributed to the rightful heirs or beneficiaries.

During the probate proceedings, the sale of the estate is carried out by the executor or personal representative of the state. The representative is also responsible for managing the probate procedure.

The procedure of selling a home or estate in probate is quite different from regular real estate sales. The probate procedure involves getting court approval and following the legal requirements.

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What Is the Probate Process for Selling Real Estate in California

The process of selling a home or estate in probate involves three major steps. These are:

1. File probate with the local court

The first step is to file a petition for probate at the appropriate probate court in California. The petition should be filed where the decedent lived. The court requires several documents. These documents include a death certificate, the title, the will (if there is one), a list of beneficiaries, and a list of the deceased person’s assets.

2. The court appoints an executor

The court reviews the petition and then appoints a personal representative to oversee the process if there is a will. If there is no will and the estate is an intestate estate, the court appoints an administrator. This can happen if there are no descendants or known family members alive.

The representative appointed by the court receives official documents that grant them the authority to act on behalf of the estate. These official documents are known as Letters Testamentary or Letters of Administration. At this stage, the representative must notify any interested or involved parties, such as creditors and beneficiaries, about the probate case.

3. Sell the probate real estate

With the court’s approval, the person designated as a representative can then list the probate house, mobile home, or estate for sale. As the executor, if the estate belonged to your parents and has sentimental value, you may not want to sell it at all. If selling is the best option, however, you can either go through an agent or sell it as-is to a company that buys houses for cash.

When Can the Executor Sell The Probate Property in California?

In California, personal representatives can sell the probate property once they get the necessary authority from the court. This timeline can vary depending on how fast the process moves through the courts. This is typically a smooth procedure unless the deceased left substantial debt, there was a foreclosure on the property, some accounts are in arrears, or there is a mortgage that needs to be paid off.

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Can You Sell a House Before Probate Is Complete in California?

There are two instances where you can sell a house before probate is complete in California.

The first instance is when the personal representative has been granted the power of independent administration (IAE) by the court. This gives the representative the authority to sell the estate without the approval of the courts. The IAE is rarely granted, however.

In the second instance, the personal representative may list the house for sale with a realtor and accept offers. However, the actual sale needs to be confirmed by the court and all proceeds from the sale must go into a probate escrow account. The money is distributed once the probate is complete. It’s important to note that those interested in purchasing the house may be hesitant about buying a property during the probate process, though.

Do You Need to Go Through Probate to Sell an Inherited House in California?

It’s not always necessary to go through the full probate system if you are the seller of an inherited house. This, of course, depends on the circumstances and your qualifications. However, there are some instances where you can avoid probate. Here are some scenarios where the procedure isn’t necessary.

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Small Estate Affidavit

If the person who passed away had a net value that’s below $184,500, you can go through a simplified procedure called a Small Estate Affidavit. You must file the affidavit 40 days after the decedent’s death at the required clerk’s office or court. After you fill out the required forms, the transfer of property can take place without going through formal probate.

A Trust

Another way to avoid probate is by having trust. If the decedent had an estate planning attorney and wrote out a trust, the estate could have been transferred before the person passed away. In this case, the property can then be sold without going through probate. The trust typically names a “successor trustee,” who is then responsible for distributing all the estate’s assets.

Joint Tenancy With Right of Survivorship

Many married couples hold their real estate as joint tenants with the right of survivorship. This means that if one person dies, the estate automatically transfers to the surviving spouse. The surviving spouse can then sell the property without going through probate.

Transfer-on-Death Deed

If the deceased person executed a transfer-on-death deed before passing, the property is transferred directly to the beneficiary/descendant after the owner dies and becomes the descendant’s estate. The beneficiary can then sell the property without going through probate.

What Are the Probate House Sale Issues in California?

Selling an estate through probate isn’t always a smooth process. Several issues can crop up. Some issues are:

• Legal requirements: The legal requirements involve setting court dates, appearing before the court, providing the required documentation (including the title), signing forms, and complying with quite a few regulations in accordance with the law. These requirements can make selling an inherited home complicated.

• Time-consuming: Due to the legal requirements and court filings, the process can take several months, if not longer.

• Notice requirements: The representative must notify all interested parties, including beneficiaries. There may be objections and disputes. There may also be disagreements over the final price of the property. This can delay the process.

• Potential buyer hesitation: Some buyers may be hesitant to purchase an estate in probate. This can reduce the list of potential buyers.

Options You Can Consider When Selling a Probate House in California

As a seller, if you are trying to sell your probate house in California, you have a few options at your disposal.

1. You Can List the Probate Property With a California Real Estate Agent

When you list your probate house with a real estate agent in California, there are several advantages and disadvantages.

Pros:

• Expertise and Experience: A realtor comes with a wealth of expertise and experience. Realtors know all the rules and regulations when it comes to selling a probate house. They are also very familiar with the housing market and can offer quite a bit of advice. They can provide valuable information on marketing and pricing an estate as well.

• Wide Exposure: Since real estate agents buy and sell houses for a living, they have access to multiple listing services (MLS) as well as other marketing channels. This can significantly increase the visibility when your house goes on the market. This exposure can bring in more interested buyers.

• Save Time and Effort: As a seller, you’ll quickly realize that selling a probate home is demanding and time-consuming. When you work with an agent, however, you can have your realtor represent you and do a lot of the work, such as showings and negotiations.

• Professional Networking: Since real estate agents have a solid network of professionals, such as title companies, appraisers, and lawyers, they can connect you with various experts to help you with any legal aspects of the process.

Cons:

• Property Condition: If the probate home needs a lot of work, you may need to do some major renovations before putting it on the market. Ensuring the house looks presentable can become costly.

• Potential Delays: Since the probate house has to be market-ready, you may need to delay putting it on the market to get repairs done. There may be issues such as a leaky roof and inefficient plumbing, for example.

• Costs and Fees: When you hire a real estate agent, it can become costly. An agent asks for a commission, which is based on the sale price. This may cut into your profits. There are also additional fees, such as closing fees and listing fees.

• Limited Control: Hiring an agent leaves with you less control during the sales process. You may find yourself relying on the agent’s judgment and expertise for everything.

2. You Can Sell the Inherited Property to a Family Member in California

Instead of putting the probate home on the market, you may prefer to sell it to one of your siblings. Here are some pros and cons to consider:

Pros:

• Flexibility: As the seller, since you are selling the home to a family member, you may have more flexibility with how you negotiate the contract. There may be payment arrangements set up, for instance.

• Familiarity: When you sell the probate home to a family member, the estate is still within the family. This can give you peace of mind as well as comfort.

• Emotional Connection: If the probate home was your parents, you may not want to sell it to a stranger. Selling it to a family member ensures the home remains in the family. This is important if you have a strong emotional attachment to the estate.

• Cost Savings: When you sell the house to a family member, you can bypass quite a few of the costly real estate transactions. You also won’t have to worry about an agent’s commissions, marketing expenses, or closing costs.

Cons:

• Financial Issues: As a seller, if you sell the home below market value, you may take a financial hit. In addition, there may be issues like an inheritance tax, a capital gains tax, or other specific tax issues that could affect you and your income. There may be other liabilities that you may have overlooked as well.

• Disputes: You may have disputes over the value of the estate, the price of the estate, or even the condition. If renovations are required, who pays for the renovations – the buyer or the seller? This could lead to conflicts within your family. In addition, when navigating legal issues and documents, emotional considerations may get in the way.

• No Market Exposure: If you decide to sell the house to a family member, you may not get a competitive price for the house.

3. You Can Sell a California Probate House As-Is to a Cash Home Buyer

A final option is to sell your probate house as-is to a cash home buyer. This is often a fast, painless option. Here are the pros and cons:

Pros:

• Quick, Simple Process: A company like Eazy House Sale offers fast transactions that make the whole sales process quick and simple. Cash home-buying companies buy your house with cash, so they don’t require an appraisal or an inspection. You won’t need to deal with a lender or any kind of traditional financing, either.

• No Repairs or Renovations Needed: One of the major advantages of selling your probate house as-is is that you don’t need to repair anything or renovate the home. Cash buyers usually purchase houses in their current condition and don’t require repairs. As a seller, you don’t need to worry about pouring cash into the home before putting it on the market.

• No Marketing and Listing Process: When you sell to a cash buyer, there aren’t any added marketing and listing fees. This can save you money and time. You don’t have to follow the traditional path of preparing your home for showings, hiring a realtor, or listing your house.

• Guaranteed Sale: Selling your house to a company that offers cash means you’ll be getting a guaranteed sale. This is helpful if you want to get rid of the house quickly and you don’t want to deal with all the hassles of selling a home.

Cons:

• Lower Sale Price: Because you aren’t renovating the home or making repairs, you may be selling your home for a lower price than if you had gone through the traditional method. You may not be happy with the price difference.

• Limited Market Exposure: When you sell to a company offering cash, you won’t be listing your house. This can limit the exposure of your house and eliminate potential buyers who may have been willing to pay a lot more.

Probate House Sale Frequently Asked Questions

Can you sell a house without going through probate in California?

Yes, there are a few cases where probate isn’t necessary when you’re selling an estate. If the property is held in joint tenancy with the right of survivorship or as community property with the right of survivorship, the estate passes directly to the surviving owner upon the death of the original owner. If there is a living trust, the estate can pass directly to the trust beneficiaries without going through probate.

sell probate house in Los Angeles California

If the value of the deceased person’s entire estate, including the house, is below a certain amount (currently $184,500 for estates where the decedent died after April 1, 2022,) an heir or beneficiary can use a Small Estate Affidavit to transfer the property without going through the probate system. Finally, if the deceased person had previously recorded a Transfer on Death Deed for the property, it passes directly to the named beneficiary after the owner’s death, bypassing probate, and allowing the named beneficiary to sell the property without probate.

Can you live in a house during probate?

Yes, there are various ways you can live in a house during the probate process. Typically, the representative of the estate has the authority to allow heirs or beneficiaries to live in the home during probate. There could also be an agreement if there are multiple heirs involved to allow someone or a few people to live in the house during probate. An heir may choose to live in the house during probate and care for the property. The heir may also take over all the bills, such as utility bills, property taxes, home insurance, and more.

Can you empty a house before probate in California?

Attorneys usually advise you to avoid emptying a house before probate. However, there are instances where the court determines it to be acceptable. If personal belongings, such as jewelry, were given to others in a will, then those items can be removed. In addition, perishable goods and living animals should also be removed from a home.

How long does it take to sell a house in probate?

The entire process of selling a house in probate can take a few months to years, depending on the circumstances. The probate process can take a few weeks to a few months and the executor appointment process can take several weeks. The property’s value must be assessed before being listed for sale. Once the estate is listed, however, it can be a matter of days before it is sold or a matter of months.

Do all heirs need to agree to sell an inherited property?

It’s always a smoother process if all heirs are on board when selling an inherited property. However, if not, a majority should be on board to get approval from the court overseeing the probate process. A probate attorney may recommend negotiations amongst the heirs to avoid conflict.

Easiest Way to Sell a House in Probate in California

When you sell an estate that’s in probate, there isn’t a one-size-fits-all answer. Most often, there are unique circumstances.

Once you get a probate attorney and go through the courts, the court assigns a representative or administrator. After the court approves the process, you may choose to list the house with an agent or sell it as-is to a cash home buyer like Eazy House Sale.

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