If you are faced with handling estate matters, we wish you and your family stress-free peace in these difficult times.
Rest assured, our team of Certified Probate & Trusts Real Estate Specialists can help you navigate this process when you are ready.
For now, we understand that the most important value we can exhibit is empathy.
In the interim, below is some information and resources you may find helpful.
key steps to purchasing probate property in Los Angeles
1. understanding whether court confirmation is required
Sales of real property by a Trustee administering a Trust, or by a personal representative with "full authority" under the IAEA largely mirror traditional sales and may contain all of the same contingencies and provisions as non-probate sales of real property (Cal. Prob. Code § 10503).
On the other hand, when the personal representative for the estate has Limited Authority, Court Confirmation is required for real estate sales, where the Court oversees the bidding process for the property.
2. how do I bid on property listings that are subject to court confirmation?
If you would like to bid on a probate property, you must do all of your own due diligence prior to making an offer. Due diligence shall include an inspection, reviewing all available information and any research you would like to conduct.
Offers are not contingent upon post offer due diligence or inspection of any kind, even in those instances where a property is not available for personal inspection (occupied, boarded-up, etc.).
Once you know you would like to make an offer, all you need to do is tell us (via Email) your offer terms and we will prepare your Official Offer on the Seller’s Offer to Purchase Contract so that it can be submitted together with your proof of funds by the offer deadline.
The Personal Representative reserves the right to accept, counter or reject all offers.
3. Can the buyer obtain a loan?
The buyer may obtain a loan, however there are no financing contingencies. Make sure that your loan is secure before bidding. The bidder’s deposit will be applied to the purchase price. The balance of the purchase price to be “ALL CASH.”
4. Will I receive a clear title to the property?
Yes, title insurance will be provided. The seller will be providing a clear title. Title will be free of all prior monetary liens and encumbrances (unless otherwise specified). Any monetary liens will be paid off through escrow from the sales
proceeds.
Sales will be subject to the rights of occupants-in-possession, if any. If the property is tenant occupied, escrow will close with the occupants in the property, and it will be the responsibility of the new owner to negotiate rental agreements with those
occupants at that time.
5. Do I need proof of funds to submit an offer?
Yes, you must submit proof of funds with your offer. We reserve the right to disregard any offer it receives without proof of funds. You must also provide your vesting (how you are going to hold title), your address and phone number. Be
prepared to provide a copy of your driver’s license, if requested.
6. Is the 10% deposit refundable if I decide not to complete the sale?
If you are the high bidder, your 10% deposit is not refundable based on the fact that these properties are sold AS-IS WHERE-IS with all faults known or unknown, disclosed or undisclosed, discoverable or undiscoverable, financeable or un-financeable, and with no financing contingencies.
If escrow does not close within 45 days, or within an extension of time granted by the seller, Probate Code of California Section 10350 requires the seller to ask the probate court to vacate the sale or charge the buyer a $200 per day hold open fee.
If the court orders the sale vacated, the law requires the deposit to be held by the seller until the property has been sold again and escrow has closed. If the total amount of the final sales price, plus the amount of expenses and fees allowed by the
court for vacating the first sale, is less than sales price of the vacated sale, the difference is paid from the deposit.
If the difference is greater than the deposit, a lawsuit to collect the amount is usually filed. The relevant portion of Probate Code Section 10350 says: “If after the confirmation, the purchaser neglects or refuses to comply with the terms of the sale, the court may vacate the order of confirmation and order a resale of the property. If the amount realized on such resale does not cover the bid and the expenses of the previous sale, the defaulting purchaser at such previous sale is liable to the
estate for the deficiency.”
7. Does the high bidder automatically get to purchase the property?
No. The Administrator/Guardian reserves the right to accept, counter or reject all offers. Even if you are notified you are the high bidder and you have signed all disclosures and provided your 10% deposit, your offer is still subject to the Court Confirmation. Higher bids/offers may be accepted by the court if they are made in court, and they are in an amount equal to or higher than the first minimum overbid which is 5% + $500
8. What is the "first Minimum Overbid at the Court Confirmation hearing?"
A higher bid may be accepted by the court if they are made in court and they are in an amount equal to the accepted bid, plus five percent (5%) of that amount plus $500. The court shall deem any further incremental successive overbidding
amounts.
For instance, if the high bid on auction day was $1,000,000 the first minimum overbid will be $1,050,500 ($1,000,000 + 5% of the high bid amount + $500).
If the original bidder is outbid in court the original bidder’s deposit will be returned after the court hearing.
9. If my offer is accepted, when can I close escrow?
After you sign the disclosures and submit your deposit, the offer must be presented to the court. A hearing to present your offer will be in approximately 45- to 60-days where it is subject to Court Confirmation and Overbid.
The court date is solely up to the court and is subject to the court’s calendar. Once the court sets the date of thehearing you will be notified by the court.
Upon confirmation of the sale a 45-day escrow will be opened.
WE COMMIT TO DELIVERING THE CLIENT EXPERIENCE YOU DESERVE
Understanding Your Needs
It all starts with our commitment to listening to understand. Understanding the results you are looking for and timeline you need is the first step to delivering it. We take the time to listen to you and understand what your goals and motivations are, and what your preferences are for communication, offer negotiation, and marketing. This understanding becomes our North Star in advocacy.
Transparent Communication
Like any relationship, transparent communication plays an integral role in getting things done. We also know that you have many responsibilities competing for your attention, so we take the time to learn your preferences for communication and provide relevant updates the way you want to be communicated with so you are always aware of where things stand.
Data-Driven Decision Making
We know that market research drives decision-making in real estate, and we provide you with ongoing access to market and submarket analytics, reports, and updates to gauge competitiveness within the market.
Protecting Confidential Information
When keeping information confidential is the instruction, we employ an Access & Non-Disclosure Agreement, as well as screen, qualify, and assess prospective purchasers and/or tenants for intended use, financial qualifications, and ability to commit to a transaction before providing access to the property and other confidential information.
Prioritizing Health, Safety & Security
Above all, we make every effort to preserve the health, safety, and security of our clients and their property. This includes protocols in place for showing the property, as well as routine property checkups for vacant properties.
Always Your Decision
And of course, as your representative, we are but the pen in your hand. While our guidance is designed with your best interest in mind, it is always your choice how best to go forward.