Yucaipa, CA · Member since 2010 · 137 posts · 96 votes
I've been hearing from PR's lately and even from an "expert" in Probate (i.e. someone not on BP) that even with full authority under the IAEA in California a sale of a probate property needs to be sold no lower than 90% of the probate referee's appraisal.
This seems to be coming from the attorneys. Has anything changed recently? I don't believe this 90% question is correct but I want to be totally clear.
The issue has to do with adverse claims by heirs, beneficiaries or creditors who believe their position were compromised by a reduced sale price. The 90% reference is only statutory to the extent a personal rep has been charged to have willfully sold or transferred an asset (real property here) got substantially less than the market value as determine by referee.
If you control all threats or counter claims, there'd never be a problem.
@Rick H. Thanks for the response. That is what I expected.
So just to be clear, I'm negotiating on a couple of properties. The PRs have full authority, all of the heirs are in agreement with the PR but the houses need repairs. My offer will be 60-70% of ARV making my offer well below the probate referee appraisal. Therefore as long as all parties are happy campers the court will have no issues with the transaction and it proceeds as a standard sale. That seems simple. Right?
Conversely, no matter how bad the condition of a property is and no matter how low the sale price needs to be, if the heirs are not in agreement or there's a dispute among the heirs there is no way the court would approve the sale at any price. So my mission here is to find a solution that makes the heirs happy or I walk away. Right? Or can I conclude the deal with the PR at 90% of the probate referee's appraisal without the heirs if I can handle the price?
Is it possible to get a probate referee to lower their appraisal as a way of showing the heirs that they aren't getting stiffed? If their argument is that the PR was selling below value but the house's condition didn't warrant the high appraisal, can I submit contractor remodel estimates to help lower the appraisal?
Knowing the answers to my questions sure would help me overcome the objections I'm getting.
All the court wants is resolution and a certain degree of compliance.
Claimants include heirs, contingent heirs and beneficiaries, their successors, assignees and creditors (both secured, unsecured and priority unsecured like DHCS).
If you can ache ice agreement by all parties, there's no one yo gripe.
Referee's required to provide date of death value and another appraisal if DOD < one year.
Auctions establish the market value whereby MLS and off-market sales may be challenged. If you disagree with Ref's I&A then your choices are limited to pushing back, creative financing and convincing a judge of ref's shabby appraisal work.