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Overbid and Estate Litigation when Selling Real Estate

By October 24, 2025No Comments
real estate

Table of Contents

Key Takeaways

  • Selling real estate in California probate often requires court approval at a confirmation hearing.
  • Other buyers can place overbids—offers above the accepted purchase price.
  • California Probate Code sets a statutory overbid formula to ensure fair market value.
  • Disputes about sales, marketing, or proceeds may lead to estate litigation.
  • The Grossman Law Firm represents heirs and beneficiaries in disputes involving probate real estate sales.

What Is an Overbid in California Probate Real Estate Sales?

In California probate, selling estate real property is more complex than a private sale. When a personal representative(executor or administrator) accepts an offer, the transaction usually requires probate court confirmation.

At that court hearing, another buyer may appear and submit a higher offer, called an overbid. This process ensures the property sells for the highest price possible, protecting the financial interests of the estate’s beneficiaries and heirs.

The Grossman Law Firm regularly helps clients understand how overbids work and what to expect at a probate confirmation hearing.

How the Overbid Process Works

Here’s how a typical California probate overbid sale unfolds:

  1. The personal representative accepts an initial offer to purchase the estate property.
  2. The offer is submitted to the probate court for confirmation.
  3. During the confirmation hearing, additional buyers may submit overbids.
  4. If multiple overbids are made, the court sets minimum increments and manages the live bidding.
  5. The court confirms the sale to the highest qualified bidder.

This process aims to maximize the value of estate assets. However, it can also trigger conflict—especially if beneficiaries believe the sale was handled unfairly or if the property was sold below value.

Overbid Formula in California Probate Court

Under California Probate Code §10311, the minimum overbid must exceed the original offer according to this formula:

  • The amount of the original bid, plus
  • 10% of the first $10,000, plus
  • 5% of the remaining balance over $10,000.

Example:

If the accepted offer is $300,000:

  • 10% of the first $10,000 = $1,000
  • 5% of the remaining $290,000 = $14,500
  • Minimum overbid = $315,500

If multiple buyers make overbids, the court determines additional increments for competitive bidding.

Litigation Risks When Selling Estate Real Estate

While overbids help ensure fairness, the process can still lead to probate or estate litigation. Common disputes include:

  • Beneficiary objections to the sale price or marketing strategy.
  • Claims that the personal representative failed to act prudently in selling the property.
  • Allegations that the overbid procedures weren’t followed correctly in court.
  • Disagreements about how the sale proceeds are distributed.

These conflicts often arise when transparency breaks down or fiduciary duties are breached.

At The Grossman Law Firm, our experienced probate litigation attorneys step in to protect your rights—whether you’re a beneficiary, heir, or fiduciary accused of misconduct. We pursue fair outcomes through negotiation or court action when necessary.

Related Resources

FAQ

Q: Can beneficiaries object to a probate real estate sale?

Yes. Beneficiaries can object if they believe the sale isn’t in the estate’s best interest or if procedures weren’t properly followed.

Q: Does every estate sale require court confirmation?

Not always. Some cases under the Independent Administration of Estates Act (IAEA) authority allow sales without confirmation, though many still require court oversight.

Q: How does the court decide between multiple overbids?

The court applies the statutory minimum overbid formula and continues open bidding until the highest-qualified offer is accepted.

Q: What if the personal representative mishandles the sale?

Beneficiaries can petition the court for an accounting, request removal of the representative, or file litigation for damages.

How The Grossman Law Firm Can Help

At The Grossman Law Firm, we help beneficiaries and heirs throughout California enforce their rights in probate and trust litigation. Suppose you’re involved in a probate real estate sale and have concerns about overbids, court confirmation, or how sale proceeds are distributed. In that case, our team can protect your interests.

Call (888) 443-6590 or fill out our  Get Help Now form.

Our Intake Specialists can evaluate your case to assess your situation at no cost to you.

Qualifying cases will be scheduled for a Free Phone Consultation with Attorney Scott Grossman.

Originally Published: August 28, 2016