How to Sell a House in Probate (and When the Court Has to Approve It)

Can you sell a house while it is in probate?

Yes. A house can be sold during probate, but only by the person the court appoints to run the estate, and only after the court gives that person written authority. In most states that authority is a document called Letters (Letters Testamentary if there is a will, Letters of Administration if there is not).

The Judicial Council of California describes Letters as proof that you have been appointed and can act for the estate. Title companies, buyers and lenders will ask for a copy before anything closes.

If the house was in a living trust, held in joint tenancy, or covered by a transfer-on-death deed, it may not go through probate at all. Our guide to selling an inherited house covers those paths.

Who has the authority to sell a probate house?

The personal representative has the authority to sell. That is the executor named in the will, or an administrator the court appoints when there is no will or the named executor cannot serve.

Heirs do not have authority on their own, even if they will eventually inherit the house. A sibling who "has the keys" cannot sign a purchase contract for the estate. If several people want to serve, the court decides.

Once appointed, the personal representative has real duties. In California, for example, the court's instructions require an inventory and appraisal of estate assets within four months after Letters are issued, along with careful records of every dollar in and out. Selling the house is part of that job, not a side deal.

Does a judge have to approve the sale?

It depends on the state and on how much authority the court gave the personal representative. Some states let the representative sell like any other seller. Others require a judge to review and confirm the sale before it can close.

California is the best known example of how this works:

With full authority, an heir who objects to the Notice of Proposed Action can push the sale into court anyway. So even "full authority" works smoothly only when the family is on board.

Other states have their own versions of supervised and unsupervised administration. Rules differ, so check your state's guide at /sell-my-house-for-cash and confirm with a local probate attorney.

How does court confirmation and overbidding work?

In a court-confirmed sale, the personal representative accepts an offer, then asks the court to approve it at a hearing. At that hearing, other buyers can show up and bid more. The judge confirms whoever ends up with the best qualifying bid.

California sets the rules in detail:

• Minimum price. For a private sale to be confirmed, the offer generally must be at least 90 percent of the house's appraised value (Probate Code 10309).
• Minimum first overbid. A new bid must be at least 10 percent more on the first $10,000 of the original bid and 5 percent more on the amount above $10,000 (Probate Code 10311).

Example: an accepted offer is $300,000. The first overbid must be at least $1,000 (10 percent of $10,000) plus $14,500 (5 percent of $290,000), so $315,500 or more.

This matters for sellers and buyers alike. Your accepted buyer is not guaranteed the house until the judge confirms. Some buyers walk away from court-confirmation sales because of that uncertainty. Others, especially investors who buy probate houses often, are used to it.

What are the steps to sell a probate house?

Here is the usual order. Your state may add or skip steps.

1. Open probate and get appointed. File the petition in the county where the person lived. Wait for the court to issue Letters.
2. Secure and insure the house. Change the locks, keep utilities on, and tell the insurance company the owner has died. A vacant house may need a different policy.
3. Get a value. Many states require an appraisal for the estate inventory. California uses a court-appointed probate referee for most assets.
4. Decide how to sell. List with an agent, sell to a cash buyer, or sell to a family member. Give heirs any required notice.
5. Accept an offer and give notice. Send the Notice of Proposed Action (California full authority) or file a petition for confirmation, depending on your authority.
6. Attend the hearing if one is required. Be ready for overbids.
7. Close. The title company pays off the mortgage and any liens from the proceeds, and the rest goes to the estate account.
8. Account to the court and heirs. The money stays in the estate until debts are paid and the court allows distribution.

How long does it take to sell a house in probate?

The sale itself can close quickly once you have authority, but the whole probate process usually takes months, and complicated or contested estates take longer. The biggest delays are getting appointed in the first place and, where required, waiting for a court hearing date.

A cash buyer removes the loan approval and appraisal steps on the buyer side. It does not shorten the court's calendar. For a sense of how fast the closing piece can go, see how fast you can close a cash sale.

Should you sell a probate house to a cash buyer or list it?

Listing usually gets a higher price if the house is in decent shape and the family can wait. A cash buyer usually makes sense when the house needs work, is full of belongings, is far away, or when heirs want a simple, predictable exit.

Be honest with the heirs about the trade-off. A lower price on a faster, as-is sale is only worth it if the time, repair costs and carrying costs you avoid are bigger than the discount. Run your numbers through the cash offer calculator, and read our full comparison of a cash offer vs listing with an agent.

In California sales that need confirmation, keep the 90 percent of appraisal rule in mind. A low cash offer may not qualify for confirmation at all.

What should you ask a cash buyer about a probate house?

Ask whether they have bought probate houses before and whether they understand your state's process. A buyer who expects to close in a week will be frustrated by a court hearing, and a frustrated buyer is more likely to back out.

Good questions to ask:

• "Have you closed probate sales in this county? Are you comfortable with a court confirmation hearing?"
• "Are you buying this house yourself, or assigning the contract to someone else?" Some buyers are wholesalers. That is legal in most places, but you should know who will actually close. Our guide on real estate wholesaling explains how it works.
• "How much earnest money will you put down, and when is it nonrefundable?"
• "Can you take the house with the contents still inside?"

Cash Offer Desk can give you a written as-is cash offer in the areas where it buys. Compare it with other offers instead of taking the first one. It is free for sellers, which we explain on how we make money, and if we plan to assign the contract to an investor partner, we tell you up front, in writing. We are not an agent and we do not give legal advice, so keep your probate attorney involved.

What mistakes cause problems in a probate sale?

The most common mistake is signing a contract before you have Letters. Without authority, the contract may not be enforceable, and it can create a dispute with a buyer who thinks they own the deal.

Other problems to avoid:

• Skipping heir notice. Even where a judge does not need to approve the sale, heirs usually must be told. Missing notice can undo or delay the sale.
• Letting the house sit uninsured or unpaid. Missed mortgage payments, property taxes or insurance lapses keep running during probate.
• Mixing money. Sale proceeds belong in the estate account, not a personal account.
• Guessing at the rules. Probate law is state law. A probate attorney can tell you in one meeting whether you need court confirmation and how long it will realistically take.

When you are ready, you can request a cash offer or read how it works first.