Selling a House in Probate in California: Complete Guide

When a California homeowner passes away and their property must be sold as part of settling the estate, the sale often must go through probate — the court-supervised process of administering a deceased person's estate. Probate real estate sales in California involve unique legal requirements, timelines, and procedures that differ significantly from standard home sales, and misunderstanding these can lead to costly delays and legal complications.

Whether the decedent left a will or died intestate (without a will), probate may be required to transfer real property unless the home was held in a living trust, held in joint tenancy with right of survivorship, or is eligible for a simplified transfer under California's small estate procedures (estates under $184,500 in total value as of 2026). For most California homeowners with significant real estate holdings, probate is the default process.

The California probate process is governed by the California Probate Code, with proceedings conducted in the Superior Court of the county where the decedent resided. The process typically takes 6 to 18 months from the filing of the initial petition to the final distribution of assets, though complex or contested estates can take years. The cost of probate — including attorney fees, executor fees, court costs, and appraisal fees — typically runs 3% to 7% of the gross estate value.

The probate process begins when someone — typically the executor named in the will or a potential heir — files a Petition for Probate with the Superior Court. This petition asks the court to validate the will (if there is one), appoint a personal representative (called an executor if named in a will, or administrator if court-appointed), and authorize the personal representative to act on behalf of the estate.

After the petition is filed, a hearing is scheduled at least 15 days later. Notice must be published in a local newspaper and mailed to all heirs, beneficiaries, and known creditors. If no one contests the petition, the court issues Letters Testamentary (for executors) or Letters of Administration (for administrators), which are the legal documents that authorize the personal representative to manage estate assets, including real property.

The personal representative must then file an Inventory and Appraisal within four months of appointment. For real estate, a court-appointed probate referee (not a regular real estate appraiser) conducts the appraisal. The probate referee charges a fee set by statute — currently 0.1% of the appraised value. On a $500,000 property, that is a $500 appraisal fee. This appraisal establishes the property's date-of-death value, which is important for both estate tax purposes and the minimum acceptable sale price.

A critical early decision is whether the personal representative has the authority to sell real property under the Independent Administration of Estates Act (IAEA). If the will grants IAEA powers, or if the court grants them in the appointment order, the personal representative can sell real property with limited court oversight. Without IAEA authority, every real estate sale requires full court confirmation — a longer, more complex, and less predictable process.

Under the Independent Administration of Estates Act (Probate Code Sections 10500-10592), a personal representative with full IAEA authority can sell real property without court confirmation, provided specific notice requirements are followed. The personal representative must send a Notice of Proposed Action to all heirs and beneficiaries at least 15 days before the sale. If no heir or beneficiary objects within 15 days, the sale proceeds like a standard real estate transaction.

IAEA sales are significantly faster and simpler. The personal representative lists the property, accepts an offer, and closes escrow much like any other sale. The 15-day notice period is the only additional step compared to a standard transaction. Buyers prefer IAEA sales because there is no risk of being outbid at a court hearing. For this reason, IAEA sales typically achieve higher prices and attract more offers than court-confirmed sales.

If any heir or beneficiary objects to the proposed sale within the 15-day notice period, or if the personal representative does not have IAEA authority, the sale must go through court confirmation. This involves filing a petition to confirm the sale, a hearing (typically 30 to 45 days after filing), and the potential for overbidding by third parties at the hearing.

Court-confirmed sales require the initial offer to be at least 90% of the court-appraised value. At the confirmation hearing, other parties can submit overbids. The minimum first overbid must exceed the original offer by at least 5% of the first $10,000 plus 10% of the remainder. For example, on an original offer of $450,000, the minimum overbid would be $450,000 + $500 (5% of $10,000) + $44,000 (10% of $440,000) = $494,500. This competitive process can drive the price up but also creates uncertainty and delays that deter some buyers.

Step 1: The personal representative hires a real estate agent experienced in probate sales (or sells to a cash buyer). Probate experience matters because of the unique disclosures, timelines, and court requirements. Step 2: The property is appraised by the probate referee and listed at or above 90% of the appraised value (for court-confirmed sales) or at market value (for IAEA sales).

Step 3: Offers are received and the personal representative selects the best offer. For probate sales, the standard California purchase contract is supplemented by a probate addendum. Key differences include: buyers typically must submit a deposit of at least 10% of the offer price (compared to 1-3% in standard transactions), the sale is contingent on court confirmation (for non-IAEA sales), and the property is sold in as-is condition with limited or no seller disclosures since the personal representative typically never lived in the home.

Step 4: For IAEA sales, the Notice of Proposed Action is sent and the 15-day waiting period passes. For court-confirmed sales, the personal representative's attorney files a petition to confirm the sale and a hearing is scheduled 30 to 45 days later. At the hearing, the judge opens the floor for overbids. If an overbid is accepted, the original buyer can counter-overbid, and bidding continues until one party prevails. The court then confirms the sale to the highest bidder.

Step 5: Once the sale is confirmed (or the IAEA notice period expires without objection), escrow proceeds to closing. Court-confirmed sales often have shorter escrow periods because the buyer has typically already completed due diligence. The total timeline from listing to close is 60 to 90 days for IAEA sales and 90 to 180 days for court-confirmed sales.

Probate is an expensive process, and the costs of selling real property within probate compound the standard costs of a real estate transaction. Attorney fees and personal representative (executor) fees are set by California Probate Code Section 10810 and are based on the gross value of the estate: 4% of the first $100,000, 3% of the next $100,000, 2% of the next $800,000, 1% of the next $9,000,000, and 0.5% of the next $15,000,000.

For a $500,000 estate, statutory fees are $13,000 for the attorney and $13,000 for the executor — a total of $26,000 in statutory fees alone. These fees are calculated on the gross estate value, not the net equity. If the estate includes a $500,000 house with a $300,000 mortgage, the fees are still based on $500,000. Additional costs include the probate referee fee (0.1% of property value), court filing fees ($465 for the initial petition plus additional fees for subsequent filings), publication costs ($200 to $500), and the standard real estate transaction costs (commissions, escrow, title, transfer taxes).

The total cost to sell a probate property can easily reach 10% to 15% of the property's value when you combine probate fees, attorney costs, real estate commissions, and closing costs. On a $500,000 property, total costs of $50,000 to $75,000 are common. This is why many estates look for ways to minimize costs, including selling directly to a cash buyer to eliminate commission and closing cost expenses.

One significant financial advantage of probate sales: the stepped-up tax basis. Under current federal law, the cost basis of inherited property is adjusted to the fair market value at the date of death. If the decedent purchased the home for $150,000 and it is now worth $500,000, the heirs' basis is $500,000 — meaning they owe zero capital gains tax if they sell at or near the appraised value. This stepped-up basis is one of the most valuable tax benefits in real estate and applies regardless of whether the property goes through probate or trust administration.

Many California homeowners create revocable living trusts specifically to avoid probate. When property is held in a trust and the trustor (creator of the trust) dies, the successor trustee can sell the property without any court involvement. This eliminates court filing fees, publication requirements, overbidding risk, and the lengthy probate timeline. Trust administration typically takes 3 to 6 months — significantly less than probate's 6 to 18 months.

However, trust administration is not free. Successor trustees may hire attorneys and accountants to assist with the administration, with costs typically running 1% to 3% of the trust estate value. The standard real estate transaction costs (commissions, escrow, title, transfer taxes) still apply. The key savings are in time, court costs, and the avoidance of the statutory attorney and executor fees mandated in probate.

If the decedent had a trust but the property was never transferred into the trust (a common oversight), a Heggstad petition under Probate Code Section 850 may allow the court to retroactively confirm that the property was intended to be a trust asset, avoiding full probate. This is typically much faster and less expensive than probate, but success depends on the specific facts and available evidence of the decedent's intent.

Whether the property is in probate or trust, Sierra Property Buyers regularly purchases estates. We understand the unique requirements of both probate sales and trust administration, including IAEA notice requirements, court confirmation procedures, and trustee sale authority. We work directly with estate attorneys to ensure a smooth transaction that serves the interests of the estate and its beneficiaries. Our ability to close quickly and buy as-is is particularly valuable for estates where the property has been vacant, has deferred maintenance, or needs significant work.