Probate Referee Appraisal and the 90% Rule in California

A probate referee is an independent appraiser, appointed by the State Controller and designated by the court, who values the house and other non-cash assets as of the date of death. Under the 90% rule, a judge cannot confirm a private probate sale unless the offer is at least 90% of an appraisal made within one year of the confirmation hearing. The rule applies to court-confirmed (limited authority) sales; it does not apply when an executor sells under full authority with a Notice of Proposed Action.

What Is a Probate Referee?

California probate referees are appraisers who have passed a state qualification exam and been appointed by the State Controller to serve a county (Probate Code §400, §401). When a probate is opened, the court designates one of them for that estate (§8920). The Controller’s Office publishes contact information for referees on its probate referee page.

The referee is not hired by the family, does not represent any heir, and signs the appraisal under oath that the property was “truly, honestly, and impartially” appraised (§8905). That independence is the point: the court relies on the referee’s number when it reviews sales, fees and distributions.

What Does the Referee Appraise, and What Does the Executor Appraise?

The inventory and appraisal is a single document that lists every estate asset and its fair market value at the date of death (§8802). The work is split:

The executor delivers the inventory and supporting information to the referee (§8902), and the completed inventory and appraisal must be filed within four months after Letters are first issued, unless the court allows more time (§8800).

How the Probate Referee Appraisal Works, Step by Step

1. The court designates a referee, usually in the order that appoints the executor or administrator. In Los Angeles, Orange and San Diego Counties it typically takes about two months from filing the petition to the hearing where Letters are granted, longer if anyone objects.
2. The executor may change or request a referee. The executor can remove the first referee designated, without giving a reason, any time before delivering the inventory (§8924). The court may also designate a referee the executor requests for good cause, such as a referee who recently appraised the same property (§8921).
3. The executor delivers the inventory. It lists each asset, with the information the referee needs: address, parcel number, condition notes and access if an inspection is wanted.
4. The referee appraises. Within 60 days of receiving the inventory, the referee must either return the completed appraisal or file a status report explaining the delay (§8940).
5. The inventory and appraisal is filed with the court, within four months of Letters (§8800).

What Does a Probate Referee Cost?

The referee’s commission is one-tenth of one percent (0.1%) of the value of the property the referee appraised, plus actual and necessary expenses (§8961). The commission is at least $75 and no more than $10,000 per estate, unless the court allows more on the referee’s application (§8963). On a house appraised at $1,000,000, the commission would be $1,000 plus expenses.

The fee is paid by the estate as an expense of administration, and the referee may not hold back the appraisal until it is paid (§8960).

How Does the 90% Rule Work in a Probate Sale?

When the executor has limited authority, or chooses court confirmation, every real property sale goes back to the judge (§10308), usually on the Judicial Council’s Report of Sale and Petition for Order Confirming Sale of Real Property (DE-260). Under Probate Code §10309, the court cannot confirm a private sale unless:

• the property was appraised within one year before the confirmation hearing;
• the appraisal’s valuation date is also within that year; and
• the accepted offer is at least 90% of that appraised value.

A simple illustration with round numbers: if the referee appraised the house at $1,000,000, the lowest offer the court can confirm is $900,000. If the accepted offer is exactly $900,000, the first overbid at the hearing must be at least $945,500: 10% more on the first $10,000 and 5% more on the rest (§10311). Our probate overbid calculator runs that math on any accepted price, and our post on the overbid process covers what happens in the courtroom.

The 90% figure is a floor, not a target. At the hearing the court still looks at whether the executor made efforts to get “the highest and best price for the property reasonably attainable” (§10310), and whether the price is disproportionate to the property’s value (§10313). Full exposure to the open market, such as an MLS listing, is the usual way to show that.

Does the 90% Rule Apply Under Full Authority?

No. When the executor has full authority under the Independent Administration of Estates Act and sells without court supervision, the court-confirmation requirements, expressly including “sale at not less than 90 percent of appraised value”, do not apply (§10503).

Instead, the executor serves a Notice of Proposed Action that states the material terms, including the sale price and the broker’s commission (§10585), at least 15 days before acting (§10586). The appraisal is on file with the court, so a price well below it still draws attention from beneficiaries, and an objection sends the sale to court supervision. Our full vs. limited authority guide explains how to tell which authority you have.

What If the Appraisal Is Too High, Too Low or Out of Date?

Date-of-death values age quickly, and they are sometimes set without an interior inspection. California law gives executors and beneficiaries several tools:

• Reappraisal for sale. Before the sale or its confirmation, a new appraisal may be obtained if the property was never appraised, the appraisal or its valuation date is more than a year before the hearing, or the court is satisfied the latest appraisal is too high or too low (§10309(b)). If a referee did the original appraisal, the same referee may do the new one without a further court order (§10309(c)).
• Ask for the backup. On demand by the executor or a beneficiary, the referee must provide the appraisal report and backup data at no charge, and must justify the value if it is contested (§8908).
• File an objection. The executor or any interested person may object to an appraisal in writing at any time before the hearing on final distribution; the objector carries the burden of proof (§8906).
• Waive the referee entirely. The court may waive appraisal by a referee for good cause, on a petition filed no later than delivery of the inventory, with at least 15 days’ notice (§8903). Waivers are the exception; talk to your probate attorney before relying on one.

Value also matters beyond the sale. The appraised value feeds into the statutory fees for the executor and attorney, which you can estimate with our probate fee calculator, and it is often used as the date-of-death value for tax basis. Ask your CPA how the number affects your situation.

Is the Rule Different for Conservatorship Sales?

Yes, it is stricter for the conservatee’s home. Conservators sell under the court-confirmation procedure, and the IAEA sale provisions do not apply to them (§2543(b)). For the conservatee’s personal residence, a new appraisal is required if the last one is more than six months old at the confirmation hearing, unless the court finds it is in the conservatee’s best interests to rely on an appraisal no more than a year old (§2543(c)). See our conservatorship sales page for the rest of that process.

Frequently Asked Questions

Can a probate house sell for less than the appraisal?

Yes. In a court-confirmed sale it can sell for as little as 90% of an appraisal dated within one year of the hearing (§10309). Under full IAEA authority there is no statutory 90% floor, though beneficiaries can object to the proposed price.

Does the probate referee come inside the house?

Not always. Referees decide how to appraise each property. If the home has condition issues that a drive-by would miss, the executor should give the referee photos and details, or arrange access, before the appraisal is finished.

Can the executor choose the probate referee?

Not freely. The court designates a referee from the Controller’s appointees for the county. The executor may remove the first one designated without cause before delivering the inventory, and may ask for a specific referee for good cause (§8921, §8924).

Do trust sales need a probate referee appraisal?

The referee and the 90% rule are part of probate court administration. A successor trustee selling a house held in a living trust outside court is not selling under §10309, though many trustees still order a date-of-death appraisal. Ask your trust and estate attorney what your trust and situation require, and see our trust sales page.

Pricing a probate home against a referee’s appraisal in Los Angeles, Orange or San Diego County? Talk with our attorney-led team before you list, or request a free valuation to compare the market with the appraised value. Learn more about our probate sales services, the probate sale process, and our work in Orange County, Los Angeles County and San Diego County.