Selling inherited California real estate follows a set order: confirm who has legal authority to sell, find out whether a probate court must be involved, learn the property's date-of-death value and property tax position, decide how to handle condition and disclosures, compare the ways to sell, and then close under the authority that applies.
California property guideUpdated October 17, 2026General information, not legal or tax advice
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This checklist is for the person holding the keys and the questions: an adult child, a surviving spouse, an executor, a successor trustee, or one of several heirs who share a house that a parent or relative owned. Often the property is hours away, the paperwork is unfamiliar, and siblings are waiting to hear what happens next. Most people facing this process have never sold property they did not buy themselves, and the first worry is usually simple: who is allowed to sign, and does a judge have to say yes? The tasks below are grouped in the order they usually happen. Items marked (professional) are ones an attorney, tax professional, title or escrow company, or licensed real estate agent usually handles.
Before You Start: Key Background
Authority to sell comes from a document or a court order, never from the family agreeing among themselves. Which document matters depends on how the property passed at death, and California has four main paths:
Full probate. A court supervises the estate and appoints a personal representative.
Trust administration. A trustee manages property that was held in a trust.
Simplified procedures. Shorter court or affidavit processes for qualifying estates.
Transfer on death deed. A recorded deed that passes the property directly at death.
A few words carry specific meanings, and they are not interchangeable:
Executor: the person named in the will to handle the estate.
Administrator: the person a court appoints when no executor is serving.
Personal representative: the umbrella term for an executor or administrator once the court has appointed them and issued letters.
Trustee / successor trustee: the person who manages trust property; the successor trustee is the one named to take over after the original trustee.
Heir: a person entitled to inherit under California's rules when there is no will covering the property.
Beneficiary: a person named to receive property under a will, a trust or a transfer on death deed.
Co-owner: anyone who holds title to the property together with others.
Real property is land and buildings; personal property is everything else, such as furniture, vehicles and bank accounts. California treats them differently, with separate simplified procedures and different value limits.
Documents to gather:
The will or trust, with any amendments. These name the executor or successor trustee.
The current deed. Its vesting line shows how title was held at death.
Certified death certificates. Title companies, courts and assessors ask for them.
Letters testamentary or letters of administration, if issued. These are the court's proof of appointment.
Mortgage, tax and insurance statements. These show what must be paid at closing.
Where heirs, a trustee or an executor are in open conflict, or misconduct is suspected, that is a contested matter handled by an attorney who litigates trust and probate cases, and it sits outside an ordinary sale.
Step 1 — Confirm Who Has Authority to Sell
The answer to "who has to sign?" depends on the path the property took.
- Probate: obtain letters. Under Probate Code section 8400, a person has no power to administer the estate until appointed personal representative, and the appointment takes effect only when letters are issued; a named executor may, before then, pay funeral expenses and take necessary measures to maintain and preserve the estate. (professional) - Trust: confirm the successor trustee. The trust document names who takes over after the original trustee's death or resignation, and a title company usually asks for the trust pages showing that succession. - Simplified procedure: check eligibility. The California Courts self-help guide, Check if you can use a simple process to transfer property, lists four procedures and their limits, which are updated every three years, with the next update on April 1, 2028. - Affidavit for collection or transfer of personal property: for a death on or after April 1, 2025, the guide lists a maximum estate value of $208,850. It covers personal property, not the house. - Petition to determine succession to the decedent's primary residence: under Probate Code section 13151, a successor may file once 40 days have passed since the death, if the gross value of the primary residence does not exceed $750,000 as adjusted periodically (the guide lists $750,000 for a death on or after April 1, 2025); notice goes to each heir and devisee named in the petition within five business days of filing. - Affidavit for real property of small value: under Probate Code section 13200, it may be filed no sooner than six months after the death, with a notarized acknowledgment and an inventory and appraisal by a probate referee attached; the guide lists $69,625 for a death on or after April 1, 2025. - Spousal or domestic partner property petition: a court process for property passing to a surviving spouse or registered domestic partner. (professional) - Transfer on death deed: identify the beneficiary. Under Probate Code section 5652, the deed transfers all of the owner's interest at death to the surviving beneficiary; two or more beneficiaries take as tenants in common in equal shares, a lapsed share passes to the others in equal shares, and the property passes without warranty of title and subject to recorded liens and other limitations. - Co-owners: confirm every signer. A voluntary sale of the whole property needs every co-owner's signature. Where co-owners cannot agree, California partition law provides a court remedy, handled by an attorney who takes those cases.
Step 2 — Determine Whether Probate Court Involvement Is Required
Many families find this step reassuring, because the court's role is narrower than they feared. It depends on how title was held.
Name alone, above the limits: full probate. Real property held in the decedent's name alone, with no trust, joint tenancy or transfer on death deed, and above the simplified-procedure limits, generally passes through probate. The California Courts self-help guide, Overview of formal probate, says a case is filed in the county where the decedent lived. If the decedent lived outside California, it is filed in the California county where the decedent owned property.
Check the authority granted. Under Probate Code section 10308, all sales of estate real property must be reported to and confirmed by the court before title passes, except as Probate Code section 10503 provides for a personal representative selling with independent administration authority. Under that authority, a sale generally moves forward on a notice of proposed action to interested persons, and it goes to the court if someone objects or if the court granted only limited authority. (professional)
Trust: no court for the sale itself. A trustee generally sells without court supervision but still owes duties to the beneficiaries under the trust document and California law.
Simplified procedure or transfer on death deed: no full probate. Once the procedure is complete or the deed's affidavit is recorded, the successor or beneficiary holds title and signs as owner.
Buyer type changes nothing here. Whether the house is listed, sold by the owner or sold directly to a cash buyer, the estate's authority, any notice and any court confirmation stay the same.
Step 3 — Establish the Property's Tax Basis and Understand Proposition 19
Two separate tax questions arrive with an inherited house, and mixing them up is common. One is federal income tax on any gain from the sale; the other is California property tax going forward.
Pin down date-of-death value. Under 26 U.S.C. § 1014(a), the basis (the starting value used to measure gain) of property acquired from a decedent is generally its fair market value at the date of death. The alternatives are a value at the alternate valuation date if the estate elects it, a special-use value if that election is made, or, to the extent a conservation-easement exclusion applies, the decedent's basis. Gain is generally the difference between the sale price and that basis, less selling costs. A later rise or fall in market value does not change the basis itself.
Order a written appraisal. In probate, a probate referee values the property. The California State Controller's Office page, Probate Referees, says the Controller appoints probate referees, that their service is required for court resolution of an estate, and that it is also available for trust administration. (professional)
Bring basis questions to a tax professional. A CPA, an enrolled agent or a tax attorney reviews income tax, basis and whether a sale owes tax. (professional)
File the change in ownership statement. Under Rev. & Tax. Code section 480, a personal representative files it with the recorder or assessor of each county where the decedent owned real property, before or when the inventory and appraisal is filed; in other transfers at death, including through a trust, the trustee or transferee files within 150 days after the date of death.
Check the Proposition 19 exclusion. For transfers on or after February 16, 2021, Rev. & Tax. Code section 63.2 lets a transfer between parents and children, or grandparents and grandchildren whose parents are deceased, avoid full reassessment only if the home was the transferor's principal residence, it becomes the transferee's principal residence within one year, the transferee files for the homeowners' or disabled veterans' exemption within a year, and a claim is filed. The exclusion has a value limit: under that section, market value above the prior taxable value plus $1,000,000 is added to the new taxable value.
Note the claim deadline before a sale. The claim is due within three years after the transfer, or before the property is transferred to a third party, or before an eligible transferee no longer occupies it, whichever is earlier; a claim is also timely within six months after a notice of supplemental or escape assessment is mailed. (county assessor)
Ask about nonresident withholding. A sale of California real property by a nonresident seller may trigger state withholding; the Franchise Tax Board publishes the current rules. (professional)
Step 4 — Prepare the Property and Understand Disclosure Obligations
An inherited house can be sold in its present condition. Whether to repair anything first is a choice about price and buyers, and any requirement that applies to a particular property is a separate question for the seller's attorney or agent.
Walk the property or arrange an inspection. Knowing the roof, plumbing and foundation lets a seller weigh repair against sale in a house that needs repairs.
Identify which disclosures apply. Civil Code section 1102.2 says its article of disclosure rules does not apply to certain sales, including sales under court order, such as sales ordered by a probate court in the administration of an estate, and sales by a fiduciary in the course of administering a trust or a decedent's estate. The fiduciary exemption does not apply where the trustee is a natural person who is a trustee of a revocable trust and is a former owner of the property, or was an occupant in possession within the preceding year. That exemption is limited to that article, and other duties may still apply. (professional)
Disclose what is known. California law generally expects a seller to disclose known material defects, and a licensed real estate agent or a real estate attorney can say which forms and statements a specific sale calls for.
Plan for the contents. Clearing, valuing or selling furniture and belongings is an estate sale of personal property, a separate category from the real estate sale.
Keep carrying costs current. Property taxes, insurance, utilities and any HOA dues continue until closing, and vacant-home insurance coverage can differ from an ordinary policy.
Secure the house. Locks, a utility check and periodic visits protect the estate's main asset while the sale is prepared.
Step 5 — Choose How to Sell: Three Paths and Their Tradeoffs
For a family deciding together, often from different cities, this step tends to cause the most discussion. Three categories exist, each with real tradeoffs.
Understand what a direct sale trades. A buyer who takes the house as it is prices in the repairs it will make, the risk of what it finds and the cost of reselling, so a direct offer often comes in below what the open market might pay; in exchange, the seller usually prepares less, hosts fewer showings and depends less on a buyer's lender approving a loan.
Get written offers and compare net proceeds. The comparison that tells a family which way fits is the price less commissions, repairs, carrying costs, loan payoffs and closing costs, and a cash offer versus a listing is measured the same way.
Remember the rules are fixed. No sale method avoids or shortens probate, court confirmation, a required notice, a required disclosure, a lien or a tax.
Check the mortgage. Under 12 U.S.C. § 1701j-3(d), for a loan on residential property with fewer than five dwelling units, a lender may not exercise a due-on-sale clause on transfers that include a transfer to a relative resulting from the borrower's death and a transfer by which the borrower's spouse or children become owners. The loan still has to be paid from the proceeds at a sale. The current balance comes from the lender, and an attorney can review the loan's status. (professional)
Step 6 — Carry Out the Sale Under Probate or Trust Authority
Once a buyer is chosen, the authority from Step 1 sets the mechanics.
Probate with full independent authority: give notice. Under Probate Code section 10503, the court-confirmation requirements, such as published notice of sale, court approval of agents' and brokers' commissions, sale at not less than 90 percent of appraised value, and the court's examination of the sale, do not apply to a sale made with that authority. A notice of proposed action generally goes to interested persons, and the sale proceeds if no one objects. (professional)
Probate with confirmation: petition the court. Where confirmation is required, the sale is reported to the court and a hearing is set. Under Probate Code section 10308, if the personal representative does not file the report and petition within 30 days after the sale, the purchaser may file them, and notice of the hearing is given and posted as that section provides. At the hearing other bidders may overbid; how much higher a bid must be, and the appraisal rules, come from the Probate Code and the court's own information, which the estate's attorney reviews. (professional)
Keep the inventory on schedule. Under Probate Code section 8800, the inventory and appraisal is due within four months after letters are first issued, or within further time the court allows, together with a certification about the change in ownership statement.
Trust sale: sign as trustee. The successor trustee signs under the trust's authority, and beneficiaries are typically entitled to information or notice under the trust document and California law.
Open escrow and order title. Escrow is the neutral holder of documents and money, and the title company insures the buyer's title and lists what it needs, such as letters, a court order or trust pages. (title and escrow)
Record the deed. The deed from the personal representative, trustee or owner is recorded with the county recorder, and liens and the loan are paid from escrow.
Distribute proceeds as directed. The personal representative or trustee distributes according to the will, the trust or the court's order, and the formal probate guide says a final account is not required if everyone entitled to distribution signs a written waiver or a receipt.
Typical Timeline and When the Process Gets More Complicated
How long a sale takes depends on the path. A trust sale or a sale after a transfer on death deed can move on the owner's schedule once authority is confirmed. A probate sale depends on when letters are issued, whether a notice of proposed action draws an objection, whether court confirmation is required, and whether creditor claims arise. The waiting periods already noted in Step 1 shape when a simplified procedure can begin. Carrying costs run the whole time, which is one reason families compare net proceeds rather than price alone.
An heir who will not sign
A sale of the whole property needs every co-owner's signature. When agreement cannot be reached, partition is the legal remedy California provides, and an attorney who handles partition cases handles that subject.
A contested will or trust
A contest or an accusation of misconduct pauses many sales and is handled by an attorney who litigates trust and probate cases.
A lien or title defect found in escrow
Unpaid property taxes, judgment liens or an unreleased old loan can surface in the title report; they are usually paid or cleared before or at closing.
Condition that affects a buyer's loan
Deferred maintenance can keep a buyer's lender from approving a loan, which may lead to renegotiation or a different buyer.
An heir or property in another state
Where an heir lives elsewhere, signing and notarizing can take extra coordination. Where the decedent also owned property in another state, that state's law may apply to that property.
When you’re ready
You Don’t Have to Work This Out Alone
If you’re dealing with the steps of an inherited property sale, we’re here to talk it through.
Every inherited property is different. Call or send us a message, and we’ll listen. A direct offer is often lower than what the open market might bring, and asking for one does not commit you to selling.
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Frequently Asked Questions
Can you sell your part of an inherited property?
A co-owner who holds an undivided share can generally sell or transfer that share, though buyers for a partial interest are uncommon. Where co-owners cannot agree to sell together, California partition law provides a court remedy, handled by an attorney who takes partition cases.
What are the rules for inherited property in California?
They depend on how title was held and whether there is a will, trust, transfer on death deed or joint tenancy. Those facts decide who signs and whether probate applies. Basis is generally date-of-death value, and Proposition 19 governs reassessment for transfers on or after February 16, 2021, as Step 3 describes.
Does inherited property go through probate in California?
It depends on title at death. Property in a trust, in joint tenancy, under a transfer on death deed, or eligible for a simplified procedure passes outside full probate. Property in the decedent's name alone above the limits generally goes through probate; the California Courts publish the current limits by date of death.
What taxes apply when you sell inherited property in California?
Two questions arise: federal income tax on any gain, measured from date-of-death value under 26 U.S.C. § 1014(a), and property tax reassessment under Rev. & Tax. Code section 63.2. A CPA, enrolled agent or tax attorney reviews income tax; the county assessor reviews reassessment and exclusion claims.
How do you sell an inherited house without a real estate agent in California?
The person with authority sells it directly, handling pricing, marketing, showings, negotiation and escrow coordination. Required disclosures, the estate's authority and any court steps are unchanged. Comparing net proceeds across the three ways to sell shows what the saved commission is worth against the added work.
What is the stepped-up basis on inherited property?
It means the basis is generally the fair market value at the date of death, under 26 U.S.C. § 1014(a), rather than what the decedent paid. A sale near that value often produces little gain, though whether a particular sale owes tax is a question for a tax professional.
What happens to a mortgage on inherited property in California?
The loan stays on the property. Under 12 U.S.C. § 1701j-3(d), a lender generally may not call a residential loan due because of a transfer to a relative resulting from the borrower's death. At a sale the balance is paid from escrow; the lender confirms the payoff figure.
How do you do an estate sale yourself for inherited property?
An estate sale of furniture and belongings is a sale of personal property, separate from selling the house. Heirs sometimes handle it themselves and sometimes hire an estate-sale company; either way, it runs alongside the real estate sale rather than as part of it.
