Probate purchases involve court requirements such as contracts, forms, due diligence, and specific disclosures. These properties are often sold “as is” and may require significant repairs, making them ineligible for traditional financing. Due to the poor condition of many probate properties, sellers prefer cash offers.
Common conditions include:
10% earnest money deposit.
No contingencies for loans, appraisals, inspections, or repairs.
No termite clearance, retrofit, or home warranty.
Court confirmation with the possibility of overbidding.
Inspection and Disclosure - Since the seller is deceased, disclosures about the property’s condition are limited. Buyers should conduct inspections before making an offer to avoid surprises.
Submitting the Offer - Buyers must submit a probate-specific offer form along with a 10% deposit. The estate representative can accept, counter, or reject the offer, but the court will decide on final approval.
Waiting Period - Once the court receives the petition to confirm the sale, there is a mandatory 45-day waiting period. During this time, the property is marketed at the new accepted price.
Court Auction
The court schedules a hearing where the property is sold auction-style if additional buyers are interested.
The opening bid includes the accepted price plus 10% of the first $10,000 and 5% of the remaining balance.
The highest bid wins, and the court confirms the sale.
Escrow timelines vary depending on whether court confirmation is required. If court confirmation is not needed, the process follows a standard timeline, typically lasting 30 to 45 days. However, when court confirmation is involved, the sale takes significantly longer due to additional legal procedures and the requirement for extended marketing efforts.
Due to limited disclosures, probate purchases carry risks. Buyers should consider inspecting the property before submitting an offer. Investing in an inspection helps identify potential issues and avoid costly surprises later.
Ann Marie is one of California’s leading Certified Probate and Trust Specialist. Her proven track record speaks for itself as she is a trusted resource for attorneys, judges, and families dealing with probate and the court system.
Highlights of Ann Marie’s achievements are:
Ann Marie specializes in helping clients with luxury, investment, and/or distressed properties, offering fast and reliable services across Los Angeles, Ventura, Orange, and San Diego Counties. Contact her today to discuss your situation and prepare your property for sale.
PASADENA CA 91101