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Matt McGilvray
Understanding Limited Authority vs. Full Authority in California Probate
What is Limited Authority?
Under Limited Authority, the personal representative (often an executor or administrator) must seek court approval for key actions related to the sale of real estate, making the process more supervised. Here’s how Limited Authority affects the probate sale:
Court Supervision
Every major step, from listing the property to accepting an offer, requires the court’s review and approval. This includes setting a minimum sale price and having the final sale confirmed in a court hearing.
Marketability
Since the sale must go through court approval, it may take longer to close, and some buyers may be hesitant to participate in a court-overseen sale.
Overbid Process
With Limited Authority, once a buyer’s offer is accepted, the sale still goes to a court hearing, where other buyers can overbid. This process can extend the timeline but may result in a higher sale price.
In summary, Limited Authority provides a structured approach with the court’s oversight, ensuring all steps meet legal standards, but it may also add time and complexity to the sale process.
What is Full Authority?
With Full Authority, the personal representative has significantly more independence to manage the probate sale without needing continuous court supervision. This level of authority simplifies and accelerates the sale process. Here’s how:
Streamlined Process
Full Authority allows the personal representative to list the property, accept offers, and close the sale without needing court confirmation, resulting in a faster sale process.
Greater Flexibility
With fewer legal restrictions, the representative has flexibility in pricing, negotiating, and accepting offers, which can attract more buyers and improve the marketability of the property.
No Overbidding
Unlike Limited Authority sales, Full Authority sales do not require court overbidding, creating a more straightforward, predictable process for both buyers and sellers.
In summary, Full Authority allows for a more efficient sale with fewer procedural delays, making it an appealing option for those looking for a faster, less regulated probate sale process.
Key Differences at a Glance
Feature
Court Supervision
Approval Process
Overbidding
Timeline
Marketability
Limited Authority
Required for all major sale steps
Court must approve offers and terms
Required at a court hearing
Typically, longer process
May discourage some buyers
Full Authority
Minimal
–
Not required
Generally faster and more flexible
Typically, more attractive to buyers
Which Authority is Right for Your Situation?
The level of authority granted is determined by the court and depends on factors such as the size of the estate, the complexity of assets, and the circumstances of the probate. If you’re not sure which authority applies to your probate case, consulting with a probate attorney and probate realtor can help clarify the process and assist you in navigating your options.