Probate Authority

Full vs. Limited Authority

Full or Limited Authority? It Changes the Whole Sale

How a California probate property is sold depends on the authority the court gave the personal representative. With full authority, the estate sells much like a private seller, with a short notice period to heirs. With limited authority, the sale must be confirmed by a judge at a hearing where anyone can outbid the buyer.

Knowing which path you are on before listing sets the right price, timeline and contract terms from day one.

Full Authority (IAEA)

No court hearing and no overbids — but heirs and beneficiaries must receive notice before the sale can close.

  1. Check your Letters. Letters Testamentary or Letters of Administration state whether the court granted full authority under the Independent Administration of Estates Act (Probate Code §10400 and following).
  2. Price the property for the market. With full authority there is no 90%-of-appraisal floor, so pricing is driven by comparable sales, condition and the estate’s timeline.
  3. Sign a listing agreement and market the home like any other sale, using purchase documents written for probate so the buyer understands the notice period.
  4. Accept an offer, then serve a Notice of Proposed Action on the heirs and beneficiaries entitled to notice (Probate Code §10580 and following). Anyone who objects can stop the sale from proceeding without court supervision.
  5. If no one objects within the 15-day notice period (Probate Code §10586), escrow closes on a normal timeline: no court hearing, no overbids.

Limited Authority

A judge must confirm the sale, the price must meet the 90% rule, and the property is open to overbids in court.

  1. Choose a broker experienced with court confirmations. Mistakes in a court-supervised sale cost time and can cost the estate the deal.
  2. Order or confirm the probate referee’s appraisal. A court-confirmed sale must bring at least 90% of the appraised value (Probate Code §10309).
  3. List the property. A listing agreement in a probate sale is generally limited to 90 days (Probate Code §10150), and the broker’s commission is subject to court approval.
  4. Publish a Notice of Sale where required, giving the public advance notice that the property will be sold.
  5. Accept an offer subject to court confirmation, then file a Report of Sale and Petition for Order Confirming Sale (Probate Code §10308), and serve notice of the hearing on interested parties.
  6. At the confirmation hearing, any qualified buyer may overbid. The first overbid must beat the accepted price by 10% of the first $10,000 plus 5% of the rest (Probate Code §10311), and bidders typically bring a cashier’s check for 10% of their bid.
  7. The court confirms the highest bid. Once the signed Order Confirming Sale is received, escrow can close — and the buyer purchases without contingencies.

Expect a limited-authority sale to take longer and require more preparation. Use our overbid calculator to see what the first overbid would be for your accepted offer.

This information is general in nature and is not legal advice. Every estate is different — consult your trust and estate attorney about your specific situation.

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