Probates in California

[Jared Vidales]

We're seasoned pre-probate investors in Arizona. We're great at finding deceased owners, and working with the Heirs to name a Personal Rep, and ultimately buying their property. 

We want to apply the same strategy to deals in California. 

However, I'm getting conflicting information regarding the Probate process in CA, where all properties must go through the overbid process, and properties cannot sell for less than 90% of the appraised value. 

Is this correct? The goal would be to work with the errors, name one of them as the RP with full authority, and purchase the property without involving the courts. 

Any advice?

[Mark Pedroza]

 

@Jared Vidales

So what your inquiring about is the Court Confirmation Sale/Auction. Court confirmation (In CA) is required when there is Limited Authority ~ Disputed estates or the PR (Personal Representative) cannot be bonded. You'll have to research the file.

Once in awhile even if the PR has Full Authority they'll be a court confirmation sale for the protection of the PR representing the estate, beneficiaries or other reasons. One thing is certain as an investor you don't want you money held up in the court confirmation process for a few months.

Your interest is in purchasing the probate property from the Executor/Administrator as long as they claim IAEA powers and filing Notice of Proposed Action. View the CA Probate Code link for a better understanding: https://leginfo.legislature.ca.gov/faces/codes_displaySectio....

Yes you can purchase any probate property (to my understanding) without the confirmation process.

Just remember that the nominated Executor in the will would have to possess Letters Testamentary.

If there is no will then the Administrator would posses Letters of Administration.

For free probate leads this is he webpage I use for N CA (certain counties) and can also be used for Arizona (Maricopa County only) https://www.legaladstore.com/frmMain.cfm or find potential probate leads from this publication: https://www.recordreporter.com/rrhome.cfm?ref=publicnotices

Good luck...

P.S No I am not an attorney....

[Melanie P.]

I am not an attorney either, but have experience here. The Letters Mark mentioned in the above post will indicate whether the Executrix or Personal Representative has LIMITED or FULL authority. Limited requires court approval of the sale and will be a lengthy process. Full has authority to transact but there are steps they must follow including filing a Notice of Proposed Action with the Court 15 days prior to taking action on your offer. There is a consent form that can be signed by every interested party entitled to receive a Notice of Proposed Action but they need 100% to sign off on the sale. Of course interested parties have a right to object to the sale - both to the executrix and the Court.

The 90% of appraised value does not apply to confirmed estate administrators with full authority.