If you have recently lost a parent or loved one and have been named the executor of their estate, you are likely facing a mountain of responsibilities. In San Diego, where property values are high, the family home may be one of the most significant assets you will manage.
Many executors assume they can simply hire a real estate agent and list the property immediately. However, selling a home during probate requires specific legal steps to ensure the sale is valid and help you avoid future liability.
Obtaining the authority to act
Before you can sign a listing agreement or accept an offer, the probate court must officially appoint you as the personal representative. You should have documents such as the “Letters Testamentary” or “Letters of Administration.”
These serve as your proof to title companies and buyers that you have the legal right to sell the property. Without these documents, you generally cannot move forward with a sale.
Understanding your authority level
Once appointed, your ability to sell the home depends on whether the court granted you full authority or limited authority under the Independent Administration of Estates Act (IAEA):
- Full authority: This allows you to sell the home much like a private owner would. You can hire an agent and set the price without needing a court hearing to approve the specific sale.
- Limited authority: This is more restrictive. The sale is subject to court supervision, meaning a judge must confirm the sale. The price usually must be at least 90% of the appraised value, dated within one year of the sale.
Take note that even with full authority, you cannot act in secret. To prevent disputes among siblings or other heirs, California law requires transparency.
Generally, you must send a “Notice of Proposed Action” to all beneficiaries. This document outlines the sale price and terms. The heirs then have at least 15 days to object. If no one objects, you can proceed. If they do object, the sale may need court review to resolve the conflict.
Close the sale without the stress
Selling a home during probate can be more complicated than simply finding a buyer. If you are concerned that a family member might object, or if you are simply unsure about the paperwork, it may be wise to seek advice from an experienced probate attorney.