What is a probate sale, exactly?

A probate sale is the sale of real estate owned by someone who has died. The home was in the deceased person\'s name (not a trust, not joint tenancy), so before it can be sold, the court has to authorize the sale.

California has two paths for this — the long path (full court confirmation) and the short path (Independent Administration of Estates Act, or "IAEA"). Which path applies depends on what authority the court granted the executor at the start of probate. Most California probates today proceed under IAEA, which is faster and looks more like a normal sale. Some still require full court confirmation, which involves a courtroom auction.

The two paths, side by side

Path A — Full Authority IAEA. Executor has the same powers a homeowner has: list, accept offer, close. No court confirmation required. Beneficiaries get a 15-day notice before close (called the Notice of Proposed Action), and any beneficiary can object within that window, but objections are rare. Most California probate sales today close this way.

Path B — Limited Authority / Court Confirmation. Executor lists the home, accepts an offer, and then schedules a courtroom hearing where the property is essentially auctioned. The accepted offer becomes the opening bid, raised by a statutory minimum (10% of the first $10,000 + 5% of the balance). Any qualified bidder can come to the hearing, deposit 10%, and over-bid. The highest bid at the hearing wins.

If you don\'t know which path applies to your case, your attorney can tell you in 30 seconds by reading the Letters Testamentary or Letters of Administration from the court.

The typical timeline

For an IAEA sale, from listing to keys-handed-over, expect 6–10 weeks. That breaks down roughly as:

Week 1: Cleanout, repairs, staging, photography.
Week 2: List, open houses, offers.
Week 3: Accept offer, open escrow, inspections.
Week 4: Notice of Proposed Action sent to beneficiaries (15-day window).
Week 5: Beneficiary window closes.
Week 6–8: Buyer financing, appraisal, contingency removals.
Week 8–10: Close, keys handed over.

For a court-confirmation sale, add 4–8 weeks for the courtroom hearing schedule. Total: 10–18 weeks.

Statutory disclosures

California requires specific disclosures from sellers. Probate sales have a partial exemption — the executor wasn\'t the one living in the home, so the executor can\'t honestly disclose what they don\'t know about the property\'s history. This is what a probate sale typically delivers:

— Transfer Disclosure Statement (TDS): exemption commonly applies. Executor still completes the form to the extent of their actual knowledge.
— Natural Hazard Disclosure (NHD): required.
— Lead-based paint disclosure: required for pre-1978 homes.
— Megan\'s Law notice: standard.
— Smoke detector + water heater bracing affidavit: required.

The TDS exemption is often the biggest practical difference from a normal sale — buyers see "sold as-is, seller exempt from TDS" and price accordingly. Realistic discount: typically 0–5% versus a comparable non-probate sale, depending on the home\'s condition and the market.

The Notice of Proposed Action

Under IAEA, once you accept an offer the executor sends a written notice to every beneficiary stating the proposed sale terms. The beneficiaries have 15 days to object. If no one objects, the sale proceeds. If anyone objects, the sale moves to a court confirmation hearing instead.

The vast majority of Notices of Proposed Action go through without objection. Objections come up when (a) beneficiaries disagree on whether to sell at all, (b) the price seems below market, or (c) one beneficiary wanted to buy the home themselves.

What about the contents of the home?

Same framework as a non-probate family transition. The four buckets — family keepers, estate sale, donation, hauling — apply. The complication is that under probate, the executor has a fiduciary duty to the estate\'s value. Items of meaningful value can\'t simply be given to a family member; they need to go through an estate sale or be valued and distributed under the will.

For most estates, this is a 1-day estate-sale-company walkthrough plus a 2-day weekend sale. The estate keeps the proceeds; the contents leave the home; the property is ready to list.

What about firearms?

If the estate includes firearms, California has specific rules. Intra-family transfers between immediate-family beneficiaries are exempt from the FFL requirement under CA Penal Code §27875 but still require DROS paperwork and Firearm Safety Certificate (FSC) verification. Out-of-state transfers must go through licensed dealers in both states.

Roger holds a current California FSC and coordinates firearm disposition for every family-transition listing. Full guide at rogergrubbreal.estate/estate-firearms.

The fee structure (be honest about what costs what)

A probate sale in California typically involves the following costs, paid from sale proceeds:

— Real estate commission: typically 5–6% of sale price (negotiable). Split between listing and buyer\'s agents.
— Statutory probate fees: set by California Probate Code §10810. On a $1M estate, attorney fees + executor fees together run about $46,000 ($23,000 each). These are statutory caps; can be reduced by mutual agreement.
— Court filing fees: a few hundred dollars total.
— Cleanout, repairs, staging: varies widely. Roger\'s estimate for a typical East Bay home: $5,000–$15,000, paid from sale proceeds.
— Escrow, title, recording: $3,000–$8,000 depending on price.

The single biggest line item is the statutory probate fees, which is why estate planning that avoids probate (revocable living trust, joint tenancy, transfer-on-death deed) saves families significant money. If you\'re reading this BEFORE a parent has died, the time to set up a trust is now.

Common questions

Can a probate sale close in 30 days? Usually no, because of the 15-day beneficiary notice window plus typical financing/contingency timelines. 6–10 weeks is realistic.

Can a beneficiary buy the home? Yes, but they have to pay fair market value (the executor has a fiduciary duty to the estate). If a beneficiary wants the home, the cleanest path is an arm\'s-length offer at the appraised price.

What if the home needs major repairs? Two options: (a) make the repairs out of estate funds before listing, which usually returns the investment, or (b) sell as-is, accepting the discount. Roger walks every home and gives an honest read.

Can the home be rented during probate? Yes, if the executor has authority. Rental income belongs to the estate, not the heirs personally, until probate closes.

What happens to the mortgage during probate? The mortgage remains on the property. Monthly payments come from estate funds. The mortgage is paid off at sale close out of proceeds. The deceased\'s name on the mortgage does not need to be changed during probate.

How Roger handles probate sales

Roger has handled probate listings in Pinole, Hercules, El Cerrito, Richmond, and Berkeley for eighteen years. The process he runs:

1. First meeting with the executor (and attorney, often). Walk the home. Read the Letters. Confirm full-authority IAEA or limited authority. Discuss timeline.
2. Cleanout coordination. Estate sale, donations, hauling. Paid from proceeds. No family labor required.
3. Repairs to listing condition. Painters, plumbers, electricians, landscapers. Same single-vendor flow.
4. List. MLS, social, Security Pacific\'s buyer database, the East Bay agent network. Probate sales priced and marketed correctly close as fast as any other listing.
5. Negotiate the offer. Multi-offer situations handled standard.
6. Notice of Proposed Action. Roger coordinates with the attorney to ensure the notice goes to every beneficiary correctly.
7. Close. Same close-out as any sale. Itemized statement to the estate.

The coordination fee for this full-service work is included in the listing commission. No separate charge.

If you\'re an executor reading this

You don\'t have to do this alone. The number of moving parts in a probate sale — attorney, executor, beneficiaries, IRS, county recorder, MLS, escrow, title — is large. Most executors are family members serving for the first time, and the job is genuinely complicated.

Roger\'s standing offer: a free, no-pressure walkthrough of the home and a 30-minute consultation about the realistic timeline and process. You leave with a clear picture of what comes next. You don\'t have to commit to anything.

Reach out at (510) 504-0402 or roger@grubb.net.