Probate Process
Sales Requiring Court Approval
Certain types of sales require an appraisal and approval by the probate court. These real estate sales take longer than standard sales due to the additional court processes.
Acceptance of an offer by the is subject to probate court confirmation. Offers to purchase the property must be made at a price no less than 90% of the property’s appraised value, as determined by the probate referee appointed by the court. When an offer is agreed and accepted, subject to court confirmation, the representative will petition the court to confirm the sale. The court generally sets a date for the hearing between 21 and 75 days after the petition is submitted, depending on he availability of the court. This is a public hearing and all interested persons or parties may bid at the time of the hearing.
At the hearing: to open the bidding there must be an increase over the original bid of at least 5% of the original bid plus an additional $500. Once the bidding has been opened the court may permit the bidding to continue until it declares a bid to be the highest and best obtainable.
Bidders must make an unconditional offer. The court will then confirm the sale to the highest bidder. The bidder or buyer must be prepared to deposit 10% of the purchase price on or before the date of the hearing. Typically, after court confirmation of a sale, standard escrow procedures will open and complete the transaction on the terms and
conditions approved by the court.
Full Authority Sale
The timing of these sales is similar to a standard real estate transaction. However, the executor- administrator is exempt from disclosure.
All heirs must be notified in writing of the sale and have 15 days to object to the sale (45 days for some trusts). If an objection occurs, and it cannot be overturned by the fiduciary or attorney, the sale would more than likely need to go to court for confirmation.
