Selling Real Property with Limited Authority in California Probate: What You Need to Know

Before anything, the personal representative must:

• File a Petition for Probate (Form DE-111)
• Be appointed by the court
• Receive Letters of Administration or Testamentary specifying “Limited Authority”

These Letters legally empower the representative to act on behalf of the estate—but with constraints.

Although not legally required, hiring a realtor experienced in probate sales is strongly advised. They understand how to:

• Navigate required disclosures
• Market the property properly
• Handle overbids and court confirmation processes

Step 3: Obtain an Independent Appraisal

California law requires that the sale price of real property be at least 90% of its appraised value. The appraisal must be conducted by a court-appointed Probate Referee.

Important notes:

• The appraisal must be recent (within one year of the proposed sale).
• If the value of the property has changed, you may request a reappraisal.

Hearing, Overbid and Confirmation of Sale

 Step 4: Accept an Offer & File Petition for Court Confirmation

Once you receive an acceptable offer (≥90% of appraised value), you must:

• Accept it conditionally
• File a Petition for Confirmation of Sale of Real Property (Form DE-260)
• Schedule a court hearing to confirm the sale

You will also need to provide:

• Copy of the accepted purchase agreement
• Notice of the sale
• Appraisal
• Agent commissions and cost breakdown

 Step 5: Give Proper Notice of the Sale

You must send a Notice of Proposed Action to all heirs, beneficiaries, and anyone who requested notice. This gives interested parties time to object before the court confirms the sale.

Notice must be served:

• 15 days before the hearing
• Either personally or via mail, per California Probate Code § 1220
• Complete required newspaper publication

Step 6: Court Hearing & Potential Overbids

At the confirmation hearing:

• The judge will review the sale terms and appraisal.
• Members of the public may attend and submit overbids, offering a higher purchase price.
• If overbids are made, the court may accept the best qualified bid.

The original buyer has the option to match the overbid, but if they decline, the property may be sold to the higher bidder.

 Step 7: Finalize the Sale

Once the court approves the sale:

• The personal representative can sign the deed.
• Proceeds are deposited into the estate account.
• A Report of Sale and Petition for Order Confirming Sale must be filed with the court post-closing.

Get the appraisal early from the Probate Referee

Hire a probate-savvy real estate agent

Keep beneficiaries informed to avoid objections

Build extra time into your probate timeline

Prepare for public bidding at the court hearing