Orange County California

Trust Attorneys


For most property owners selling their real estate, a bidding war is a dream scenario. Personal representatives selling the real estate in an estate may also welcome competition on the sale price. When the personal representative sells the estate either with full court oversight or under limited authority under the Independent Administration of Estates Act, he or she must make the sale of estate real estate subject to an overbid at the confirmation hearing.

Understanding Overbids During the Sale of Estate Real Estate

When real estate of an estate is scheduled to be sold, the personal representative reports the sale and petitions the court for confirmation. This occurs within 30 days of accepting the offer. At the confirmation hearing, the original sale may become subject to being overbid by other purchasers.

How does this work? Other prospective purchasers can attend the hearing and submit a bid in an amount that equals the amount of the original bid, plus both of the following:

  1. A minimum of 10 percent of the first $10,000 of the original bid, plus
  2. A minimum of five percent of the amount of the original bid that exceeds $10,000

If there are further overbids after the initial overbid, the court handles these additional bids in much the same way as a real estate auction. The court will determine how much of an increase each subsequent bid is required to meet. Thereafter, bids will continue to be accepted until the highest bid available has been made.

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