Certain types of sales, including trusts, guardianships and conservatorships, require appraisal and approval by the probate court. The goal of the court proceeding is to protect the interests of all beneficiaries. These sales take longer than standard sales due to the additional court process.
Once the court gives permission, the representative of the estate may grant an exclusive right to sell the property for a period not to exceed 90 days. Acceptance of an offer by the estate representative is subject to probate court confirmation. An offer to purchase must be made at a price no less than 90% of the property’s appraised value.
When an offer is accepted, subject to court confirmation, the representative will petition the court to confirm the sale. The court will generally set a date for the hearing between 20 and 40 days after the petition is submitted. All interested parties may bid on the property at the hearing.
To open the bidding, there must be an increase over the original bid of at least five percent plus and additional $500. Once the bidding has been opened, the court may permit the bidding to continue until it declares a bid to be the highest and best obtainable. Bidders must make unconditional offers. The court will not accept conditional offers based on inspections of the property or financing.
The court will then confirm the sale to the highest bidder. The buyer must be prepared to deposit 10% of the purchase price at the hearing. After the court confirmation of the sale, normal escrow procedures consummate the transaction on the terms and conditions approved by the court.