How do I sell property in probate in California?
If you are looking for information on “How to sell a property in succession“In CA, or anywhere fast, the best approach is to get an IAEA-approved sale. (Remember, we are not providing legal advice. You should consult a competent local attorney.) This approach gives you the most freedom to choose how you would like to sell the property. Many times, the court will significantly slow down the process if you do not get IAEA approval for the sale.
What is the Independent Estate Administration Act (IAEA)? Why is it important if I want to quickly sell an estate in California?
Abbreviated as IAEA, this set of laws allows a personal representative to manage some or most of a decedent’s estate. The law was created to streamline the estate sale process, helping to settle estates faster and helping to sell property in probate faster. Any personal representative can request authorization from a court to sell the estate without having to go through the usual long and drawn-out process of court approvals. This is usually done when probate proceedings are started, but can be done at any time. (Cal. Prob. Code Section 10400 et seq.). If the court grants authority through what is called testamentary letters, some steps may change in the succession process. At this point, the court will relinquish most or all of its supervision of the sale.
What is the difference between limited authority and full authority? Will this affect how I can sell estate or inherited property?
If you are given limited authority, you can take most actions without court approval. You may not sell or opt for real property without the supervision of a court with limited authority. You also cannot trade or borrow money against property without court supervision with limited authority.
If you have full authority, court supervision is only required if the personal representative or real estate attorney is the principal purchasing the real estate, or if an objection is filed to the Notice of Proposed Action (to sell the property). (Cal. Prob. Code Section 10501(a)).
Does the court decide the price and terms when real estate is sold under the IAEA in CA?
No. Under the full authority of the IAEA, as administrator, you do not need to obtain court approval. The sale can be in cash or term.
Must the administrator or personal representative inform the heirs of the sale? If so, how do they notify the parties?
Yes. The personal representative must file a “Notice of Action Purpose” to inform the heirs. The personal representative must notify the following persons of the sale, unless they have consented in writing to the sale.
- All those named in the will
- Each heir entitled by law to a part of the inheritance
- The Attorney General if some or all of the property goes to the state
- Other parties such as creditors or persons with a beneficial interest in a trust
How to notify the appropriate parties:
1. Fill out the “Notice of Proposed Action” form. You can get them by going to court and requesting the form, or more conveniently, downloading it online. Just find your local court website and they will likely have one in PDF format. If they don’t have one online, the court will have one they can mail to you, or the court can print a copy for you.
two. Mail or hand-deliver the notice with all applicable documents attached to each person at least 15 days before the date specified in the Notice of Proposed Action.
You may not mail or deliver the documents yourself; someone else must do the shipping or delivery for you.
The persons who are required to receive notification are the following:
Each currency (if the decedent had a will) whose interest in the estate would be affected by the proposed action;
Each heir (if the decedent had no will) whose interest in the estate would be affected by the proposed action;
Each person who has filed a Request for Special Notice; Y
The Attorney General, if any portion of the estate will revert to the State of California, and its interest would be affected by the proposed action.
You may also (and are encouraged to do so, if possible) have each person who receives the Notice of Proposed Action date and sign the “Consent to Proposed Action.”
3. The person who mailed or delivered the Notice must complete a Proof of Service. This is a simple form and can be easily found online.
How can a recipient of the Notice of Proposed Action object to the sale?
Anyone who is due to receive the Notice of Proposed Action may object to the sale by delivering or mailing a notice to the personal representative.
An objecting party may also request that the court order that the personal representative be prevented from making the sale without court supervision. The court must grant the request and may do so without notifying the personal representative.
If the personal representative has been given full authority under the IAEA, must he carry out the sale under these terms?
No. You do not have to manage the estate under these laws. However, there are advantages to managing wealth under these laws. It is usually faster, there are fewer restrictions and more freedom when it comes to managing an estate under these laws.
