Selling Real Estate During Estate Administration: Six Facts
Oftentimes, during a Riverside probate administration, assets must be sold and the proceeds distributed to the beneficiaries or heirs of the estate. Selling real estate during estate administration is one such task that a personal representative or trustee may find themselves needing to handle as part of their duties. As with any other action taken during a probate or trust administration, the personal representative or trustee must be familiar with the applicable laws relating to the sale. Making a mistake could be costly to the estate and could create a potential for liability.
The following are six facts about selling real estate during estate administration:
- If the property is held by a revocable trust in California, it may not need to go through probate proceedings.
- Despite not having to pass through probate when real estate is owned by a trust, the personal representative or trustee may still need to make a filing with the county recorder’s office to remove the deceased’s name from the title.
- If the deceased owned an interest in real estate with a spouse, it may be possible to file a spousal petition rather than having to go through probate. Examples, where this may be the case, including where the decedent’s will left the property entirely to the surviving spouse or where the deed for the property listed the spouses as joint tenants with rights of survivorship.
- Generally, to sell real property that is part of a probate estate in California, the administrator must obtain court approval and provide notice to those who have an interest in the estate.
- In many cases, there is a minimum sales price that can be accepted. This minimum amounts to 90% of the appraised value.
- If the property is in pre-foreclosure, extra precautions and steps must be taken. You must consult a Riverside probate attorney to ensure that you are providing notice to all of the necessary parties. To learn more about how a foreclosure impacts the sale of a home during probate, view our article Foreclosure and Probate in California.
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