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Price: $ 0.01
Location: Alameda, California, United States
Date Posted: March 31
Description
| How is Probate Different from an Ordinary Transaction? | |||
| IN CALIFORNIA, when real estate of a deceased person goes into probate, the sale of that real estate becomes subject to certain legal requirements and regulations. Most of the time in our area, an executor or administrator of the estate, has the authority to sell the property through powers granted by the Independent Administration of Estates Act. When the executor has full powers under this act, he or she may elect to sell the property without the need od a court confirmation hearing. Unless there are objections by other parties to the estate, the sale can usually be finalized with a minimum of additional requirements. Most estate transactions sold under the IAEA are completed easily and are handled in a similar manner as a normal transaction. In some cases, the executor in probate may be granted only limited powers through IAEA, then a confirmation hearing is required. Even if the executor has full powers, he or she may elect to have the sale confirmed in court. When court confirmation is either chosen or required, certain procedures are generally followed, as required by law and/or custom: An offer is presented and conditionally “accepted” by the executor. This purchase agreement is not binding on the estate. After all buyer's contractual contingencies are removed, then there is a petition for the court hearing. The date of the court hearing depends upon the court calendar at the time, but is generally 20-40 days from the date of the petition. The buyer needs to deposit 10% of the purchase price prior to or on the date of the court confirmation hearing. The sale, together with the accepted offer, is advertised for a statutory period in a local newspaper. There is open, competitive bidding at the court hearing. The minimum first overbid price shall be an amount equal to the accepted purchase price of the accepted offer, plus five percent of that amount, plus $500. If there is an overbid, the court shall determine any incremental overbidding amounts - for example, $1,000 or $2,000. The bidding stops with the final bid. Any person who bids in court must make an unconditional offer (obtaining financing and approving inspections should not be a condition of the offer) and if confirmed must present a cashier’s check deposit for 10% of the purchase price as described above, or as indicated by the court. In the event a buyer defaults after a court confirmed sale, the buyer may lose his/her deposit. If the court confirms the sale to an over bidder rather than the original buyer, the original buyer’s deposit shall be refunded. If the sale is confirmed to the original buyer, the deposit shall apply to the purchase price. The purchase price accepted must be at least 90% of the probate referee’s appraised or re-appraised value of the property. Real estate commissions are subject to approval of the court. The above information is a general discussion of certain probate sale procedures in California. This information is not intended as legal advice, or guaranteed accurate, verified or complete. Specific situations may differ. Always contact your attorney for more information. Ready to select a REALTOR®….I am here to help! Toll Free: 800.378.7300 http://www.jeansellsdreams.com/Listing/VirtualTour.aspx?ListingID=1148835 Jean Powers Broker Associate, CRS, ASP, e-PRO, LTG, PMNFor more information visit: http://jeansellsdreams.vflyer.com/13/index.html |
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