Probate letters, such as Letters of Testamentary or Letters of Administration, are issued by the Los Angeles Probate Court to a Personal Representative or Executor. These letters grant an executor or personal representative the legal Authority to administer a decedent’s Estate. They determine the power of the Personal Representative or Executor and if they have Full or Limited Authority. What’s the difference between full and limited Authority?
Full Authority (Independent Administration of Estates Act or IAEA). A Full Authority Sale is more streamlined than Limited Authority. The sale of real property is allowed without direct court oversight. Some requirements of the Los Angeles Probate Court differentiate it from a standard sale. This is typically granted around the second month.
Interview a Los Angeles Probate Real Estate Specialist
This is a critical step, as errors are more costly in probate sales. To establish the correct list price, the Realtor you hire should provide a detailed marketing plan and a list of relevant properties. This can occur before you have Full Authority, but a Listing Agreement cannot be executed until the Letters Testamentary is issued.
Execute Listing Agreement
After you have selected a Realtor and Letters of Testamentary are issued, you can execute the listing agreement. Typically occurs around the third month.
List Property in the Multiple Listing Service
Marketing and showings will begin. A review of all offers takes place. Depending on what improvements, if any, you opt to make, this typically takes place between the third and fourth month.
Open Escrow and Notice of Proposed Action
After accepting an offer, escrow opens. Certain parties must be notified of the sale via a Notice of Proposed Action. This Notice of Proposed Action must be provided when selling real property in a probate. The notice must be in writing and sent to interested parties, heirs or beneficiaries, or any person or entity requesting special notice of the probate proceeding. Typically this takes place between the fourth and fifth month.
Close Escrow
After the notice period, the parties can close escrow.
Limited Authority
The sale of real property under Limited Authority requires Court supervision. Once the papers to open the Estate are filed with the Court, it typically takes two to four weeks to issue the Letters of Administration. The time will vary depending on the Court’s workload.
Execute Listing Agreement
After you have selected a Realtor and Letters of Administration are issued, you can execute the listing agreement. Typically occurs between the fourth and fifth month.
List Property in the Multiple Listing Service
Accordingly, marketing and showings will begin. A review of all offers must occur. Typically this takes place between the fourth and fifth month.
Open Escrow and Petition for Order Confirming Sale
After accepting an offer, the Estate’s representative must report the sale and petition the Court to confirm the sale. Typically done after the removal of all contingencies, such as investigative and loan contingencies. The final sales price must come within 90% of the appraised value determined by the Probate Referee.
Notice to Interested Parties
After accepting an offer, the Estate’s representative must notify certain interested parties before the Court Confirmation Hearing.
Court Confirmation
At the hearing, the sale is subject to overbidders who want to buy the property. However, they must bring a cashier’s check of at least 10% of the minimum bid amount to bid. Furthermore, the final sale is made with no contingencies. This typically occurs approximately two months after the opening of escrow.
Court Order
After the Court confirms the sale, the Court will issue an Order Confirming the Sale, and escrow can close. Although already confirmed, receiving the written order for the sale takes approximately two to four weeks.
