Probate Home Sales · California

Executor Selling Inherited Property in California

An executor in California can sell an inherited house once the court has appointed them and issued letters, the document that makes the appointment effective. How the sale goes depends on the authority the court granted. With full independent administration authority, a sale can often close without a court hearing. Otherwise, the court must confirm the sale before title passes.

Most people facing this question have just been named in a parent's or spouse's will, or have asked the court to put them in charge, and now hold the keys to a house that siblings, a lender and a county tax bill all have opinions about. Many live hours away from the property. The question underneath the search is practical: may I sign a listing agreement or accept an offer yet, and does anyone else have to sign with me? This page walks through who holds the power to sell, the two paths a California probate sale can take, the timing, what happens when heirs disagree, and the tax rules that follow the sale.

What an Executor Is and Where the Authority to Sell Comes From

An executor is the person a will names to handle the estate. Under Probate Code section 8420, the person named as executor in the will has the right to be appointed personal representative. When there is no will, or the named executor cannot or will not act, the court appoints an administrator instead, and the California Courts' Guide to property after someone dies explains that the law then follows an order of priority that begins with a surviving spouse or domestic partner, then a child, then a grandchild, and continues from there. "Personal representative" is the umbrella term for whichever person the court appoints: the official responsible for representing the estate in probate.

Being named in a will is not enough to sell anything. Probate Code section 8400 says a person has no power to administer the estate until appointed personal representative, and that the appointment becomes effective when the person is issued letters. A named executor may, before then, pay funeral expenses and take necessary measures to maintain and preserve the estate. Letters are the court document that proves the authority; the Judicial Council's form DE-150 Letters (Probate) also states whether the personal representative may act under the Independent Administration of Estates Act, with full or limited authority.

Heirs and beneficiaries are the people who receive property from the estate. They are not the personal representative, and the authority to sell rests with the personal representative the court appointed, not with the family as a group. A family's agreement does not create that authority, and a will that directs a sale does not remove the court's role either, as the next section explains.

The Probate Code also treats real property, meaning land and buildings, differently from personal property such as furniture, cars and bank accounts. The rules below concern real property unless they say otherwise.

The Two Sale Paths: Court Confirmation and Independent Administration

California starts from a default rule. Probate Code section 10308 provides that, except as provided in Probate Code section 10503, all sales of real property must be reported to and confirmed by the court before title passes to the buyer, whether the sale is private or at public auction, and even if the will directs or authorizes the sale.

The exception comes from the Independent Administration of Estates Act, which Probate Code section 10400 names and which runs through the sections that follow it. The Act lets a personal representative handle many estate matters without asking the court each time. The court grants that authority; it is not automatic, and the Judicial Council's DE-140 Order for Probate shows the box the judge checks for full or limited authority.

The difference between the two levels matters most for a house. Under Probate Code section 10403, limited authority includes all the Act's powers except the power to sell real property, exchange real property, grant an option to purchase real property, or borrow money secured by real property. Under Probate Code section 10511, a personal representative with full authority has the power to sell or exchange real property of the estate.

When full authority is used, Probate Code section 10503 lets the personal representative sell at public auction or private sale, for cash or on credit, on terms the personal representative determines, subject to the Act's own limits. Under Probate Code section 10503, the court-confirmation requirements, such as publication of 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 necessity for the sale and the efforts to get the best price, do not apply to a sale made with that authority.

Full authority still carries a check. Before taking the proposed action, the personal representative generally gives a written notice of proposed action to the people with an interest in the estate. The Probate Code sets the period for objecting. If no one objects, the sale may go forward without a confirmation hearing. If the personal representative has notice of a written objection or a restraining order, Probate Code § 10589 provides that a personal representative who still wants to sell real property must proceed under the code's court supervision provisions, which for a real property sale means court confirmation; the sale is not sent to the court automatically. The objector is given notice of any hearing on a petition to confirm the sale. The steps of selling during probate follow from which path applies.

The Court-Confirmation Sale: Steps, Appraisal, and Overbidding

For a personal representative with limited authority, or one whose notice of proposed action drew an objection, a confirmation sale adds a judge to the closing. That can feel slow, but each step has a purpose: it shows the court that the estate got a fair price for the beneficiaries.

The first step is a value. The Judicial Council's DE-147 Duties and Liabilities of Personal Representative says the personal representative must arrange for a court-appointed referee to determine the value of estate property unless the court waives the appointment, and must file an inventory and appraisal within four months after letters are first issued. In a confirmation sale, the appraised value matters because the Probate Code ties the minimum acceptable price to it and sets how recent the appraisal must be. The estate's attorney can say which figure and date apply.

Next, the property is offered for sale, usually through a licensed agent, and the personal representative accepts an offer subject to court confirmation. The personal representative then files a report of the sale and a petition to confirm it. Under Probate Code section 10308, if the personal representative does not file within 30 days after the sale, the buyer may file the report and petition. Under section 10308, notice of the hearing goes to the persons the Probate Code designates and to the buyers named in the petition, and is posted as the Probate Code provides. Depending on the sale, published notice of the sale itself may also be required.

At the hearing, the court examines the sale and may confirm or reject it. Other buyers may appear and bid more than the accepted offer; the Probate Code sets how much higher a first overbid must be. The court also approves the agent's commission in a confirmed sale.

How Long an Executor Has to Sell — and What Drives the Timeline

No single deadline in the Probate Code sections described here requires an executor to sell real property by a certain date. Some estates sell the house; others distribute it to the heirs.

What does govern is a standard of care. Probate Code section 9600 gives the personal representative management and control of the estate and requires ordinary care and diligence, judged by all the circumstances of that estate. DE-147 adds that the personal representative and any attorney are responsible for completing the administration as promptly as possible. A beneficiary who believes administration is being unreasonably delayed may ask the court to step in.

Several clocks shape the practical window:

  • Creditor claims. The period for creditors to file claims runs from the date letters are first issued, as the Probate Code sets it. DE-147 says the personal representative must mail a notice of administration to each known creditor within four months after appointment, and notify the State Director of Health Services within 90 days after appointment if the decedent received Medi-Cal.
  • Carrying costs. Property taxes, insurance, utilities and upkeep continue while the house sits, and the estate pays them.
  • The sale path. A sale under full authority with no objection moves on the notice period; a confirmation sale moves on the court's hearing calendar.

The "two-year rule" people search for is not among the probate timing rules described here. The phrase may come from property-tax rules, covered in the tax section below.

Can an Executor Sell Without All Beneficiaries Agreeing?

Yes. A personal representative who has authority to sell, either through court confirmation or under full authority from the Act, does not need every beneficiary's signature to proceed. For a family where one sibling wants to keep the house and another wants it sold, that answer can be hard to hear, and it is the law's design.

Beneficiaries do have a voice. Under full authority, the notice of proposed action gives them a chance to object, and a timely objection sends the sale to court for confirmation. Silence is not a veto, and neither is an objection: it changes who decides, not whether the house can be sold. In a confirmation sale, the court, not the beneficiaries, decides whether the sale stands.

The real check on the personal representative is the duty of care. Probate Code section 9600 requires ordinary care and diligence, and DE-147 says the personal representative must manage estate assets with the care of a prudent person dealing with someone else's property and keep estate money separate from personal funds. DE-147 also warns that acting without court permission when it is required can lead to removal, personal reimbursement to the estate, or both.

Where heirs are in open conflict or misconduct is suspected, the matter becomes contested, and that is a different subject handled by an attorney who litigates trust and probate cases. Heirs who already own the house together after distribution face a different question, taken up next.

Selling Inherited Property with Multiple Owners

Once probate ends and the house is distributed, the personal representative's authority over it ends too. If the distribution places title in several heirs together, each heir owns a share, and the sale becomes a decision for the owners rather than for one appointed person.

Heirs commonly end up holding title as tenants in common, a form of co-ownership in which each person owns an undivided fractional share, may use the whole property, and is entitled to their share of sale proceeds. The same form appears outside probate: under Probate Code section 5652, when a transfer on death deed names more than one beneficiary, they generally take the property as tenants in common in equal shares, subject to recorded liens and other limits on the owner's interest.

A tenant in common can usually sell or transfer their own share, but cannot sign a deed for the whole property alone. Selling the whole house takes every co-owner's signature. When co-owners cannot agree, California law provides a partition action, a court proceeding in which a judge can order the property divided or sold and the proceeds shared. That is a lawsuit, not a paperwork step, and an attorney who handles partition cases is the resource where co-owners are in conflict.

The contrast with active probate is the point to hold onto. During administration, the personal representative can sell the whole property under the authority described above. After distribution, the decision belongs to all the owners. Local rules and figures vary by county; the page on selling in San Diego County shows one example.

Basis, Capital Gains, and Property Tax After an Inherited Sale

Two separate tax questions follow an inherited house to the closing table: federal income tax on any gain, and California property tax.

For income tax, the starting number is basis, the figure from which gain or loss is measured. Under 26 U.S.C. § 1014(a), the basis of property acquired from a decedent is generally its fair market value at the date of death; where an election is made under the alternate valuation rules, its value on the applicable valuation date; where the special-use valuation election applies, the value determined under it; or, to the extent a conservation-easement exclusion applies, the decedent's basis. This is often called stepped-up basis. In plain terms, gain on a sale is generally measured from that inherited basis rather than from what the decedent paid, so a sale price close to the basis may produce little gain. A CPA, an enrolled agent or a tax attorney reviews the basis and income-tax question for the estate or the heirs.

Property tax works differently. A transfer of real property at death can be treated as a change in ownership that leads the county to reassess the property to current market value. For a parent-child or qualifying grandparent-grandchild transfer on or after February 16, 2021, Rev. & Tax. Code section 63.2 excludes all or part of the transfer from reassessment, but only for a claim filed with the county assessor, and only if:

  • The home was the parent's principal residence. It must also become the child's principal residence within one year of the transfer.
  • The child files for an exemption. The child must file for the homeowners' or disabled veterans' exemption within a year of the transfer.
  • The value fits the limit. Value above the home's prior taxable value plus a dollar limit the statute sets is added to the assessment; the county assessor's office publishes the current figure.

The claim must be filed within three years after the transfer, or before the property is transferred to a third party, or before an eligible transferee stops living there, whichever is earlier, and a claim filed within six months after a notice of supplemental or escape assessment is treated as timely. Those one-year and three-year periods may be what some people mean by a "two-year rule." The county assessor's office answers reassessment and exclusion questions.

Ways to Sell an Inherited Property in California

Whatever path the court has set, the personal representative still chooses how to find a buyer. Each way has tradeoffs, and none removes a probate step.

A listing with a licensed real estate agent. The estate hires an agent to market the house, hold showings and negotiate offers. Open-market exposure can draw competing buyers. In a confirmation sale, the court approves the commission.

A sale by the personal representative without an agent. The personal representative markets and negotiates directly. This saves a listing commission but puts the pricing, paperwork and buyer screening on the personal representative, and every probate procedure and disclosure duty still applies.

A direct sale to a buyer who pays cash. A buyer purchases the house in its present condition, with no loan to wait on. A direct offer is often lower than what the house might bring on the open market, because the buyer is taking on the repairs, the risk and the cost of reselling. In exchange, the estate prepares less, hosts fewer showings and depends less on a buyer's financing. Letters, the notice of proposed action, a confirmation hearing where one is required, liens and taxes are the same whoever the buyer is. The tradeoffs of a cash offer versus a listing come down to the same comparison.

A house can be sold in its present condition, though owners of homes with deferred maintenance often weigh selling a house that needs repairs against fixing it first. On disclosure, Civil Code section 1102.2 says its article of California's seller-disclosure rules does not apply to sales under court order, including sales ordered by a probate court in administering an estate, or to sales by a fiduciary in administering a trust, guardianship, conservatorship or decedent's estate. The fiduciary exemption does not apply where the trustee is a natural person who is trustee of a revocable trust and a former owner or occupant of the property within the preceding year. Other disclosure duties may still apply, and the estate's attorney can say which.

Comparing written offers side by side, along with estimated net proceeds, the price less commissions, repairs, carrying costs, loan payoffs and closing costs, is how a family tells which way fits its estate.

When you’re ready

You Don’t Have to Work This Out Alone

If you’re dealing with selling inherited property as the executor, 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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What happens next

  1. Call or send a messageWhichever feels easier.
  2. Tell us what’s going onAbout the property, in your own words.
  3. Talk through your optionsThen decide, in your own time, what comes next.

Frequently Asked Questions

How long does an executor have to sell property in California?

No single deadline in the Probate Code sections described above fixes a sale date. The personal representative must use ordinary care and diligence under Probate Code section 9600. The creditor-claim period running from the date letters are first issued, ongoing carrying costs, and the possibility of a beneficiary asking the court to address delay shape the practical timeline.

Can an executor sell property without all beneficiaries approving?

Yes. A personal representative with authority to sell does not need unanimous consent. Under full authority, beneficiaries receive a notice of proposed action and may object within the period the Probate Code sets, which sends the sale to court. Silence is not a veto, and in a confirmation sale the court decides.

Do all heirs have to agree to sell property?

Not during probate: the personal representative holds the authority, subject to the notice of proposed action or court confirmation. After the house is distributed to several heirs as co-owners, selling the whole property takes all of their signatures, or a co-owner may bring a partition action in court.

What is the two-year rule for inherited property in California?

It is not one of the probate rules described above. The phrase may come from Proposition 19, where Rev. & Tax. Code section 63.2 sets a one-year period for the home to become the child's principal residence and a claim period that can run up to three years after the transfer.

Can you sell your part of an inherited property?

A co-owner who holds title as a tenant in common can generally transfer their own share, but cannot sell the whole house without the other owners or a court partition order. During probate, the personal representative, not an individual heir, holds authority to sell the property as a whole.

How is inherited property taxed when sold in California?

For federal income tax, 26 U.S.C. § 1014(a) generally sets basis at fair market value on the date of death, with the alternatives that section gives, and gain is measured from it. Whether a sale produces taxable gain depends on the facts, which a CPA, an enrolled agent or a tax attorney reviews.

What is the Independent Administration of Estates Act (IAEA)?

It is the California law named in Probate Code section 10400 that lets a court-authorized personal representative handle many estate matters without a hearing each time. Full authority includes selling real property, subject to the notice of proposed action; limited authority excludes it, so the sale needs court confirmation.

Does a probate sale in California require court confirmation?

It depends on the authority granted and on whether anyone objects. Probate Code section 10308 requires confirmation except for a sale under the Act's authority. With full authority and no timely objection to the notice of proposed action, no confirmation hearing is needed; with limited authority or an objection, the court confirms.

What is a probate referee and why does the estate need one?

A probate referee is the court-appointed person who determines the value of estate property, as DE-147 describes, unless the court waives the appointment. That value goes into the inventory and appraisal and, in a confirmation sale, sets the floor the Probate Code ties a sale price to.

Does the Proposition 19 parent-child exclusion apply when an executor sells inherited property?

The exclusion concerns the transfer from parent to child, not a later sale to a buyer. Rev. & Tax. Code section 63.2 requires the home to become the child's principal residence and the claim to be filed before transfer to a third party, so a sale by the estate generally leaves no transfer for the exclusion to cover.

Sources & References

Confirm current requirements with official sources and qualified advisors familiar with your circumstances.

  1. 01California Probate Code section 8400California Legislative Information
  2. 02California Probate Code section 8420California Legislative Information
  3. 03California Probate Code section 9600California Legislative Information
  4. 04California Probate Code section 10308California Legislative Information
  5. 05California Probate Code section 10400California Legislative Information
  6. 06California Probate Code section 10403California Legislative Information
  7. 07California Probate Code section 10503California Legislative Information
  8. 08California Probate Code section 10511California Legislative Information
  9. 09California Probate Code section 5652California Legislative Information
  10. 10California Civil Code section 1102.2California Legislative Information
  11. 11California Rev. & Tax. Code section 63.2California Legislative Information
  12. 1226 U.S.C. § 1014 (Cornell Legal Information Institute)Cornell Legal Information Institute
  13. 13California Courts: Guide to property after someone diesCalifornia Courts
  14. 14Judicial Council of California: DE-147 Duties and Liabilities of Personal RepresentativeCalifornia Courts
  15. 15Judicial Council of California: DE-150 Letters (Probate)California Courts
  16. 16Judicial Council of California: DE-140 Order for ProbateCalifornia Courts

Published by the Silver Lining Inherited Property editorial team