You have lost a family member or friend, and now the reality of the settlement of the estate has set in. The feeling can be overwhelming. At the Barrentine Group, we have years of experience in simplifying complex real estate transactions. In the area of Probates, Trusts, and Conservatorships, there is an added layer of complexity that only the most experienced navigate to the client's advantage. We perform a support role as you take on the responsibility of settling an estate. Having personally been Executors, we understand the responsibilities and pressures of the position. From the initial re-key and preparation of the property through the close of escrow, we think of the things you haven't thought about yet and can handle them all for you.
Two things make a major difference in any real estate transaction: education and communication. We pride ourselves on both. Crucial to a successful outcome is a client who understands the probate sales process and who has the information needed to make necessary decisions. We begin with a consultation to determine how to tailor the transaction to you and your family's needs while following local legal procedures. We communicate the way you want and expect. Each conversation ends with "and this is what you can expect to happen next," which brings clarity and comfort to the process.
Here is an overview of the probate timeline.
For Executors the trust process is more simplified in that a party or parties, once in agreement, have the ability to sign off on the settlement and the timeline moves forward.
For Administrators the probate process does require that the court approve the sale of real property and with full authority once the sale is within 10% of the appraised value, the court will be satisfied. Without full authority to sell, the sale will be required to have a final overbid process which is essentially an auction held at the court.
The flowchart below helps visualize the system.
A probate sale is the sale of a property that is owned by a deceased person's estate, which is overseen by a court-appointed executor or personal representative.
The process of selling a probate home in Los Angeles involves obtaining a probate property appraisal, preparing the property for sale, marketing the property, obtaining court approval for the sale, and closing the sale.
The length of the probate sale process in Los Angeles can vary depending on the complexity of the estate, but it typically takes between six months to a year.
The different types of probate sales in Los Angeles include court-confirmed sales, overbid sales, and private sales.
The term probate is often used as a catch all phrase when there are two potential routes of sale. In a Trust Sale an executor will act as a traditional seller of real property would and will simply sell the property with no court approval or auction.
If a trust was not set up then the court will name an Administrator. They may be granted “full independent powers” under the Independent Administration of Estates Act (IAEA), and then the sale may not require court confirmation. If limited authority is applied to the administrator then court confirmation and an overbid process will be put in place. The attorney representing the estate will mail a Notice of Proposed Action stating the terms of the proposed sale to all the heirs and will also publish the sale in a paper of record. The heirs then have 15 days to object to the sale. If there is no objection within 15 days, the sale goes through without any court hearing required.
The court-appointed executor or personal representative is responsible for managing the sale of a probate home in Los Angeles. This is best done with the assistance of a qualified Realtor®.
While not typically required it may be advisable to make certain improvements to the property if the estate’s desire is to maximize the value of the real property asset.
In Los Angeles, the sale of a probate home often happens months before the probate process is complete.
Any outstanding debts or taxes owed on a probate property in Los Angeles must be paid out of the proceeds of the sale before the remaining funds are distributed to beneficiaries or heirs.
The California Association of Realtors (CAR) forms are used for the sale and purchase of real estate. There is a special probate listing agreement used to place property on the market. Traditional CAR purchase agreements are used for the sale. It is augmented by a Probate Addendum. Disclosures for probate sales will also vary since many times the executor or administrator may have no actual knowledge as to the condition of the property.
Probate sales should be aggressively marketed just as any other property. Working with an agent that understands the process can be helpful as many agents representing potential buyers may not be well versed in the probate process. All probate sales should continue to be marketed until all contingencies are removed and if court confirmation and an overbid process is required, then the property should be aggressively marketed until that event takes place to protect the estate’s interest.
All fees for the preparation of the property for the market as well as all costs associated with the sale are paid by the estate. Savvy agents may advance the cost of preparing the property for sale and will be reimbursed for that expense at the close of the sale.
Our client-driven, highly professional team approach to service is supported by the resources of the nation’s largest Real Estate Brokerage.