Court Confirmation Hearing
If objections are raised or court confirmation is required, a hearing is scheduled. During this hearing, additional buyers may overbid on the property. The minimum overbid is calculated using a formula:10% of the first $10,000 of the accepted offer plus 5% of the remaining amount, for example, if the accepted offer is $1,750,000, the minimum overbid would be $1,840,250. Final Sale and Escrow The highest bidder at the court hearing completes the purchase by submitting a cashier’s check for 10% of the bid amount. The property then enters escrow, with the sale closing in approximately 30 to 45 days.
UNIQUE ASPECTS OF PROBATE
Limited Disclosures Unlike standard real estate transactions, probate sales may not require full disclosure forms. However, the executor must provide material facts about the property’s condition. Ongoing Marketing Even after an offer is accepted, the property remains on the market to attract potential overbidders until the court confirmation hearing. Specialized Documentation Probate sales involve contracts and disclosure forms unique to these transactions. Working with an agent experienced in probate sales is critical to navigating these complexities.
AVOIDING PROBATE
While probate ensures a court-regulated process, it can be costly and time-consuming. Establishing a living trust allows real property to bypass probate entirely, saving significant legal fees
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