Limited Authority Probate Sale & Overbid Procedure
Understanding how California's court confirmation and overbid process works—whether you're selling an estate property or considering bidding on one.
When a probate property is sold under limited authority, the sale must be confirmed by the court. This process ensures the estate receives fair market value and gives other potential buyers an opportunity to submit higher bids—known as "overbids."
How Limited Authority Probate Sales Work
Your certified Probate Realtor will list the property in accordance with the value established by the Probate Referee and under probate court supervision. Once the property has been fully exposed to the market and the personal representative accepts an offer, the court will set a date to confirm the sale.
Property Listing & Marketing
The property is listed based on the Probate Referee's appraised value and marketed to potential buyers through MLS and other channels.
Offer Accepted
The personal representative (executor/administrator) accepts an offer. This accepted offer becomes the "original bid" that will be presented to the court.
Court Date Set
The court schedules a confirmation hearing. Notice is published, allowing other interested buyers to prepare overbids.
Court Confirmation Hearing
At the hearing, the court confirms the sale—either to the original buyer or to a higher bidder if overbids are submitted.
Minimum Acceptable Offer
For the court to confirm a sale, the accepted offer must be at least 90% of the Probate Referee's appraised value. This appraisal must have been set within one year prior to the confirmation hearing.
California Probate Code §10309
The Overbid Procedure
Original Buyer Deposit
The original buyer must deposit 10% of their purchase price before or on the day of the hearing.
If Sale Confirmed to Original Buyer
Their 10% deposit is applied toward the purchase price at closing.
If Sale Confirmed to Overbidder
The original buyer's deposit is refunded in full.
Bid Increments
The court sets subsequent overbid increments (typically $500-$1,000) after the minimum first overbid.
How to Calculate the Minimum First Overbid
The first overbid must exceed the original bid by:
10% of the first $10,000 + 5% of the remainder
California Probate Code §10311(a), Local Rule 14.65(D)
Example Calculation
Property listed at $400,000. Accepted offer is $360,000.
What Overbidders Must Bring to Court
Cashier's check or cash for 10% of their overbid amount
Written and signed bid (bidders are advised to leave the amount blank initially, filling it in once the highest bid is accepted)
Valid identification and ability to complete required court paperwork
Local Rule 14.65(E)
Important: Overbid Confidentiality
An overbidder does not need to announce their maximum willingness to bid to anyone except the judge. You are not required to disclose your bidding limit to the seller, other bidders, or anyone else present at the hearing.
Warning: Deposit Forfeiture
If the winning buyer (original or overbidder) defaults after the sale is confirmed, their deposit may be forfeited to the estate. Be certain of your ability to complete the purchase before bidding.
Questions About the Overbid Process?
Whether you're an executor selling estate property or a buyer interested in probate opportunities, I can help you navigate the court confirmation process.
This information is provided for educational purposes only and does not constitute legal advice. Probate procedures may vary by county and individual circumstances. Always consult with a qualified probate attorney for guidance specific to your situation. Information current as of January 2026.
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