When a parent’s house in San Diego is in probate, one of the children often wants to keep it. Buying it from the estate can work, and it often makes sense. It is still a sale, though: the estate is the seller, and the other beneficiaries are entitled to a fair price. The first question is whether the heir who wants to buy is also the executor or administrator.
This guide is about buying while the estate still owns the house. If it has already been distributed to several heirs and one wants to buy out the others, that is a co-owner buyout; see who can agree to sell an inherited share.
Two different buyers
The personal representative is the court-appointed executor or administrator, and is often one of the heirs. A beneficiary who isn’t the personal representative can buy like any other buyer. A personal representative who wants to buy is on both sides of the deal. That is self-dealing, and California law sets stricter rules for it.
A beneficiary who isn’t the executor
The sale runs through the personal representative’s authority. With full authority under California’s Independent Administration of Estates Act, the personal representative can usually sell after giving everyone entitled to notice a Notice of Proposed Action at least 15 days ahead. After a timely written objection, the sale can go ahead only under court supervision. With limited authority, or when the personal representative chooses, the court confirms the sale. Our guide to when an executor can sell covers the authority question.
In a court-confirmed sale, the heir’s accepted offer goes to a hearing where other buyers can overbid. The first overbid must be at least 10% more on the first $10,000 of the original offer and 5% more on the rest (Probate Code § 10311), and the price generally has to be at least 90% of the appraised value, with both the appraisal and its valuation date within the year before the hearing (§ 10309). How court confirmation works for buyers explains the hearing.
When the executor or administrator wants to buy
California’s starting rule is that a personal representative may not buy estate property (Probate Code § 9880). The court can authorize it when every known heir or devisee whose interest is affected consents in writing and the purchase is to the estate’s advantage (§ 9881). Full independent authority doesn’t get around this: a sale to the personal representative needs court supervision (§ 10501). There is a narrow exception, with conditions on beneficiary consent and creditor claims, that the estate’s attorney can check against the case.
In practice, a personal representative who wants the house should raise it with the estate’s attorney before any price is discussed. Consents and court approval come more easily when the other beneficiaries can see the price was set independently.
Price it as if the family weren’t buying
The fastest way to a family fight is a price that only feels fair to the buyer. Start with the appraisal in the estate’s inventory, then add an independent look at the market: recent comparable sales, the home’s condition and what it would likely bring with normal marketing. When siblings disagree, putting the house on the market and letting the heir’s offer compete is the cleanest test.
Say the estate’s appraisal is $820,000 and a daughter who isn’t the executor offers $780,000. That clears the 90% floor of $738,000. If the sale goes to court confirmation, another buyer’s first overbid would have to be at least $819,500: $780,000 plus $1,000 on the first $10,000 and $38,500 on the remaining $770,000. If the family price is well under the market, the hearing is where that shows.
Paying for it
An heir buying from the estate pays the price like any buyer, with cash or a mortgage, and a lender will want to see the personal representative’s authority to sell. Counting your own inheritance toward the price instead of bringing all the cash is a question for the estate’s attorney and, if you are financing, for your lender; don’t assume that credit is available. Before choosing between buying the house and receiving it in a distribution, ask about property taxes too. Our Proposition 19 guide covers the questions.
Questions about an heir buying the probate house
Can an heir buy a house from a California probate estate?
Yes. A beneficiary who isn’t the personal representative can buy like any other buyer, through a sale under the personal representative’s authority or a court-confirmed sale. If the buyer is the personal representative, court approval is generally required.
Can the executor buy the probate house?
Usually only with court approval. California generally bars a personal representative from buying estate property. The court can authorize it if the affected heirs or devisees consent in writing and the purchase is to the estate’s advantage. Full independent authority doesn’t remove that requirement, apart from a narrow exception.
Does an heir get a family discount?
Not automatically. In a court-confirmed sale, the price generally has to be at least 90% of a recent appraisal, and other buyers can overbid. Under independent authority, anyone entitled to notice can send a timely written objection, and the sale can then go ahead only under court supervision.
Can another buyer outbid a family member?
Yes, in a court-confirmed sale. At the hearing, another buyer can overbid if the first overbid is at least 10% more on the first $10,000 of the accepted offer and 5% more on the rest.