Estates handled through probate in California are subject to intricate legal guidelines. Upon a person’s death, property, including real estate, must be administered and distributed under their will or state statute. Knowing how real estate is handled in probate in California can help those involved manage properties effectively. If you need professional guidance on navigating probate requirements for real property, consult an expert Orange County real estate lawyer who understands the complexities of California’s legal framework.
The Probate Real Estate Process
Probate is the legal process of handling a deceased person’s property, settling all outstanding debts, and distributing property to heirs. Because real estate is often a large part of an estate, it is a unique matter in its value and legal complexity. Probate real estate is sold through a set of court-imposed procedures. Every step has to be carefully controlled, with deadlines and paperwork strictly adhered to.
It starts with the appointment of an Executor or Administrator. An Executor is a person named by the will to administer assets, such as property. In the absence of a will, or if the designated Executor is incapacitated, the court appoints an Administrator. This is a vital figure because the property cannot be sold without their consent.
The IAEA (Independent Administration of Estates Act) states that, when determining the list price, the Executor works with a real estate agent who works in probate sales. The valuation by a Probate Referee is based on this price. They then aggressively market the property to secure the highest price through a variety of channels, including online advertising, open houses, and in-person advertising.
The Buying Process
Probate properties are commonly purchased by probate owners, and any offer given to them must be over ninety percent of the estimated value of the Probate Referee’s property. When an offer is accepted, the terms are mailed to all inheritors via a Notice of Proposed Action. If they do not have any objections, the sale may proceed without any court review.
If objections are made, a court hearing can be requested. The lawyer can request a court date. Bidders may put in higher bids than originally requested. However, there is a specific percentage they must put down before the sale can be finalized.
If the sale is approved in court, the property is then given to the buyer. Any proceeds from the sale are used to settle any outstanding debts of the deceased. The rest will be given to the heirs specified in their will or according to the state regulations if there is no will.
How to Manage Probate Real Estate
When handling real estate during probate, several key issues must be taken into account that can make a significant difference in how things work out. It is first necessary to know the nature of the property ownership, as this determines if the property will need to be placed into probate.
Joint tenancy property, community property with survivorship, or properties placed in a trust can bypass probate and be more easily passed on to heirs or beneficiaries. After the title is established, the property must be secured. This can include changing locks, repairing utilities, and notifying insurers of the owner’s death to keep the property covered and insured.
Obtaining a valid appraisal to give a fair market value for the property is another important aspect of probate real estate management. The appraisal will be used to calculate any estate taxes owed to the estate. If the estate includes property that generates income for heirs, such as rent, the Executor has to protect the asset during probate by paying rent, keeping it in good standing, and maintaining the property’s current condition.
Resolving debts and liens against the estate is also an important duty. All monetary obligations should be paid off by the Executor before assets are distributed. If there are not enough liquid assets to pay off debts, the property can be sold to pay them.
Whether the property is to be transferred or sold will depend on the instructions of the deceased’s will or, in the absence of a will, on state laws. Upon needing to sell the property, the Executor and a real estate agent prepare and sell the property in accordance with all court-required procedures.
Finally, once all debts and expenses have been settled, the Executor hands the remainder of the proceeds or property to the appropriate heirs or beneficiaries.
FAQs About California Real Estate Probate Law
Q: What Happens to a House During Probate in California?
A: When a house goes through probate in California, it becomes part of the estate that the court administers. The appointed Executor or Administrator is entrusted with managing the property, including securing it, keeping it, and even selling it. The house could be appraised for value and sold to pay off debts or passed on to descendants in accordance with the will or state law.
Q: Who Owns a House During Probate in California?
A: In probate, the legal title to the home remains in the person’s estate. The court-appointed Executor or Administrator is the person who takes over the administration of the estate. No individual heir or beneficiary owns the property until after the probate process has been completed and the property is transferred to the court.
Q: Can a House Be Sold While in Probate in California?
A: Yes, a house can be sold in probate in California, although this is dependent on court approval. The Executor or Administrator must complete a series of legal steps, which include an appraisal, selling the property, and court confirmation of the sale. If heirs are not opposed and the sale meets the court requirements, the house can be sold before the probate process ends.
Q: How Long Does It Take to Sell a House in Probate in California?
A: The length of time it takes to sell a house in probate in California can vary. This depends on a number of factors: the probate complexity, any heir objections, and the court’s calendar. Also, the time it takes to market, offer, and close the deal can influence the length of time. This usually requires a considerable amount of time due to these variables.
Contact Law Office of Christopher P. Walker Today
If you are in need of help during the probate process, Law Office of Christopher P. Walker can help. Contact us today to get started.