Probate Sales - The sale of estate real property typically is subject to probate court confirmation.

The representative of the estate of a decedent (i.e., the executor or administrator) may sell the real property of

an estate where it is found to be in the best interests of the estate to do so. In such circumstances, the sale of

the property typically is subject to probate court confirmation. The following rules govern the sale of

property subject to such confirmation:

The offer to purchase must be for a price that is not less than 90 percent of the appraised value of the

real property. When such an offer is received, the representative may accept it, subject to probate court

confirmation. When the court has set the matter for hearing, any interested person may bid on the

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property at the time of the hearing. To open the bidding, there must be an increase over the amount of

the original offer of at least 10 percent of the first $10,000 and five percent of the balance. Once the

bidding has been opened, the court in its discretion may permit the bidding to continue on lesser

increases until it declares a bid to be the highest and best obtainable. The sale then will be confirmed by

the court to the maker of that bid.

The Independent Administration of Estates Act ("IAEA") provides a simplified method of probating estates

with limited court supervision. Under IAEA administration of an estate, the estate representative may enter

into an exclusive authorization and right to sell listing contract with a broker for a period not to exceed 90

days, without prior court approval, to market and sell the real property without court confirmation. The

ability of the representative of an estate to market and sell real property without court supervision under

IAEA rules, however, is conditioned upon there being no objections by interested persons (generally heirs)

who are given the right to object under the Act.

Regardless of the method used to probate the estate of a decedent, real property always is sold "as is" and,

generally, no Real Estate Transfer Disclosure Statement is required.

Court Confirmation - Buyers are strongly advised to be in court whenever their offer to purchase is presented to the court for confirmation.

Whenever the sale of real property is subject to open, competitive bidding, as in the case of a probate,

conservatorship, guardianship, receivership or bankruptcy sale, it is strongly recommended that the buyer

be in court at the time his or her offer to purchase is presented for confirmation. Buyers should understand

that, in sales requiring court confirmation, the property may continue to be marketed by the broker and

others, and that the broker and others may represent other competitive bidders prior to and at the court

confirmation. Individuals who have questions or are seeking advice regarding probate sales are urged to

contact a qualified real estate attorney knowledgeable regarding probate sales. Real estate brokers are not

qualified to give opinions in this regard.