The probate process involves the administration of a deceased individual’s estate. A personal representative is chosen to execute this task, who may be referred to as an executor or administrator. The sale of probate real estate can be made with or without court approval, depending on how much authority the administrator has. If the directions are not explicitly provided in the will or in the absence of a will, the administrator, through The Independent Administration of Estates Act (IAEA legislation), can be given full authority to take certain actions without requiring oversight from the court.
Once full authority has been granted to the probate administrator, they are required to do a Notice of Proposed Actions, which is a written document that is mailed to the heirs, beneficiaries, and any other interested person of the decedent’s estate prior to taking certain actions. These actions can include the selling of the decedent’s business, granting an option to purchase real property, distributing certain cash gifts under the decedent’s will as well the selling of probate real estate. This notice, by law, needs to be mailed at least 15 days prior to any action listed in the notice of proposed actions in probate sales.
HOW TO GET A GET A NOTICE OF PROPOSED ACTION APPROVED
Once the administrator has decided to sell real property, and prior to sending out the notice of proposed action, the administrator must notify via a request to get authorization under the Independent Administration of Estates Act (IAEA) in the probate petition. This is not just a notice that the administrator can draft without the court’s permission. It was mentioned above that any interested party could object to the notice of proposed action, but the sale of the probate property can go through if there is a failure to object or they waive the notice.
SERVICING OF THE NOTICE OF PROPOSED ACTION FOR THE PROBATE SALE
The notice of proposed action California form can be used, and it does not have to be necessary via regular mail; it can also be in electronic format as long as all the parties involved agree to such servicing. The normal time is 15 days which must be given when dealing with the sale of real property in probate prior to the proposed sale date, although the administrator can provide additional time. Although it is true that utilizing a notice of proposed action to sell the probate substantially speeds the process, the particular circumstances of the probate are really what should dictate whether it is used or not.
Even though getting court approval delays the selling process, in circumstances where there is conflict or hostility between the beneficiaries or between the beneficiaries and the administrator, it would probably make more sense to forgo filing for the authorization to use a notice of proposed action.
USING A NOTICE OF PROPOSED ACTION TO SELL PROPERTY
Selling a probate property will be a quicker and smoother process if a notice of proposed action to sell the property is prepared and issued. If the administrator is in a situation where it is allowed, having this notice issued would mean that the property can move faster through the selling process, provided there are no objections from any of the parties to the probate.
On the notice, there has to be a section that allows for objections, and such objections have to be received prior to the date of the proposed sale of the property for it to be effective. If any objection arises, then the administrator cannot move through with the sale without the supervision and approval of the court. The notice of proposed actions in probate sales is a powerful process to be used in a real estate probate sale.
WHAT HAPPENS IN THE EVENT OF OBJECTIONS TO THE NOTICE OF PROPOSED ACTION?
There are additional procedural steps that follow any objection that is not covered in this article, but it is important to know that immediately after an objection, a court hearing has to be requested to further explain to all the parties involved how the objections will be treated and further time frames to provide additional information for the court to make a decision. Ultimately, if the standing notice of proposed action brings no consensus to sell the probate property, then it will be up to the court to continue with the supervision and ultimate approval for the sale of the probate property.
WHEN TO CONTACT A PROBATE REAL ESTATE BROKER FOR YOUR HOME
The decision to utilize a notice of proposed action can be a very effective and powerful tool in a probate sale. For someone that is not familiar with all the legal procedures, forms, and timeframes, it can be an overwhelming process. Aligning with an experienced team on the seller side can be a smart decision from the beginning.
The CREM Group is a boutique real estate brokerage firm that brings the unique background of the founders. Both Mark Cianciulli and Daniel Taylor have a background in real estate law, with each bringing a piece of litigation experience and real estate investment experience to the mix. Experience, which they willingly share on all transactions for their client’s benefit.
With the benefit of their past experience under their belt and their top-of-the-line working real estate market knowledge of Los Angeles, Orange County, and surrounding areas, The CREM Group is proud to have served hundreds of satisfied clients in their probate real estate sales. With a high level of expertise and the confidence to guide and advise their probate clients during complex real estate transactions while raising the bar of excellence every single time.
DISCLAIMER: This content is meant purely for educational purposes. It contains only general information about real estate and related matters. It is NOT legal advice and should not be treated as such. We recommend consulting a legal or tax professional before acting on any material, opinion, or point of view described herein.
