Probate Purchase Agreement and Joint Escrow Instructions
Once the property is fully marketed, the listing broker usually sets a date to receive quotes. All offers to purchase a property that are subject to judicial confirmation must be subject to the FORM CAR homologation purchase agreement and joint escrow instructions. The curator, trustee or personal representative will review offers with the real estate agent and often with his lawyer. In principle, all offers must be accompanied by a deposit of ten percent of the offer price. Sometimes the deposit cheque is given to the securities company to open the escrow account for sale, but often the listing agent requires that the deposit be payable to the trustee to be kept in the trustee`s precautionary account, escrow or estate account. On the day of the confirmation hearing, the trustee`s lawyer will appear before the probate court, often with the real estate agent and the trustee. The judge announces the price of the offer to the bank and asks for bids, starting with the first minimum offer. If no one makes an offer, the court will confirm the sale as reported to the court. Often, however, someone will step forward to offer the minimum of outbidding. This triggers an auction in open session, with the judge acting as auctioneer. Auctions usually continue in increments of $5,000 or $10,000 until there are no more bids. The sale is then confirmed to the highest bidder. The highest bidder must immediately be willing to give a bank check for 10% of the offer price to the trustee.
There can be no contingency for offers made at the court confirmation hearing. No new purchase agreement is required, as the court order confirming the sale sets out the terms of the sale. The securities company prepares the new deed and other documents to complete the sale using the court order as a court instruction. The bidder`s initial deposit will be refunded if it successfully outbids. If the sale of real estate is necessary, the first step is to choose a real estate agent. In conservatory proceedings, the conservator must obtain permission from the court to sell the property and enter into an exclusive registration agreement. In most cases, the personal representative in the estate of a deceased person has the power to sell real estate on the basis of their order and does not need to obtain additional judicial approval for the sale. In the case of a court-supervised trust administration, the order appointing the trustee or placing the matter under judicial control sometimes limits the power of sale otherwise set out in the trust deed. Once the court has issued the power of attorney for the sale, if any, the trustee lists the property for sale with the chosen real estate agent who markets the property. The registration agreement must be included in the California Association of Realtors (“CARs”) Estate Protocol Agreement. Once the purchase contract has been signed and all contingencies eliminated, the trustee`s lawyer prepares a petition to the court to report and confirm the sale.
The sales confirmation request includes the details of the sale such as the purchase price, commissions for the real estate agents involved and other necessary information. The petition will also specify the minimum offer required for others to bid on the property. The first minimum bid is calculated by adding 5% to the purchase price plus $500. For example, if a property is to be sold for $100,000, the minimum bid is determined by adding 5% to the $100,000 or $5,000 plus $500. In this example, the minimum outbid would be $105,500. Perhaps one of the most confusing proceedings before probate courts is the court-confirmed sale of real estate, better known as the “sale of real estate.” Judicial confirmation of the sale of real estate is required in almost all precautionary proceedings when real estate is sold, and is often required in probate proceedings and fiduciary proceedings supervised by the court. The purpose of judicial confirmation is to ensure that the best possible price is obtained. .