When an executor calls me about selling a parent’s house in probate, one of my first questions is whether they have full authority or limited authority under the Independent Administration of Estates Act. Most of the time they don’t know, and that’s completely normal, because the choice was made on page two of a court petition their attorney filed months earlier. It matters enormously though, because it decides whether the house sells like a regular listing or goes through a public court hearing where strangers can outbid your buyer. This article explains the difference from the real estate side, and it’s part of my larger guide to selling a house in probate in Santa Clara County.
Key Takeaways
Summary: Full IAEA authority lets an executor sell a probate house much like a normal sale, with a 15-day notice to heirs instead of a court hearing. Limited authority, or an heir’s objection, sends the sale to a confirmation hearing where anyone can overbid, which adds time and uncertainty.
From my practice: An executor I worked with lived 75 miles from the downtown condo he was selling, and he had full authority under the IAEA. The probate referee appraised the shares at $755,000, which was more than the market would pay. We sold for $679,000 all cash, just under 90% of that appraisal, and because full authority exempts the sale from court confirmation, there was no hearing and no overbid to worry about. If you’re the executor, ask your attorney early which authority you have, because it shapes the whole sale.
Where This Choice Gets Made
The request for IAEA authority is a checkbox on the Petition for Probate (form DE-111). The attorney asks for full authority, limited authority, or none, and the court grants it in the Order for Probate. The reasons someone ends up with limited authority are usually one of three things. The will itself may restrict independent administration, an heir may have objected when the petition was heard, or the executor may have chosen limited authority to keep the bond lower, since the bond on a full-authority estate can have to account for the value of the real estate when the heirs haven’t waived bond. You can find which one you have on the Letters themselves, which state whether the personal representative has full or limited authority.
If you’re early in the process and the petition hasn’t been filed yet, this is the moment to talk with your attorney about requesting full authority. If the petition is already granted with limited authority, it’s sometimes possible to petition later for full authority, but it adds time.
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How a Full-Authority Sale Works
From a buyer’s perspective, a full-authority probate sale looks almost like any other listing in Santa Clara County. The house is marketed on the MLS, buyers write offers on the standard California purchase agreement with a probate advisory, and the executor negotiates and accepts the best offer. The difference is what happens right after acceptance.
The executor, through the attorney, sends a Notice of Proposed Action to every heir and beneficiary whose interest is affected. The notice lists the price and the material terms. Recipients then have 15 days to object. If nobody objects, the executor can close without ever going to court, and under Probate Code section 10590, an heir who received proper notice and didn’t object generally gives up the right to have the court review that sale later. If all the heirs are on the same page, they can sign the consent section of the notice, and the executor can move forward right away instead of waiting the full 15 days. I encourage families to line up those signatures in advance whenever the siblings are in agreement.
Because none of the court confirmation rules apply, the contract can include normal contingencies for inspection, appraisal, and loan approval. That widens the buyer pool dramatically, since most buyers in our market are financing, and it’s one of the biggest reasons full-authority sales tend to perform like normal market sales.
How a Limited-Authority or Court Confirmation Sale Works
With limited authority, the executor still markets the house and accepts an offer, but the accepted offer becomes the opening bid at a court hearing. In Santa Clara County the local rules say the petition for confirmation should be filed within 30 days after the contract is accepted, and the hearing is set on the probate calendar at the Downtown Superior Court. The judge asks if anyone wants to overbid, and the first overbid must be at least 10 percent of the first $10,000 plus 5 percent of the balance. I walk through that hearing in detail in the probate overbid and confirmation hearing.
The effect on buyers is significant. A buyer who knows their offer could be topped in open court, after waiting 6 to 10 weeks, often offers less to begin with. Most court confirmation buyers are prepared to close as-is without loan or inspection contingencies, and many are investors or builders. That isn’t always bad for the estate, especially for a house that needs major work, but it does change the pricing strategy.
Side by Side
| Full authority | Limited authority | |
|---|---|---|
| Can the executor sell real estate without a hearing? | Yes, after a 15-day Notice of Proposed Action | No, the court must confirm the sale |
| 90 percent of appraisal rule | Doesn’t apply | Applies |
| Publication of notice of sale | Not required | Required unless the will grants a power of sale |
| Open-court overbids | No | Yes |
| Loan and inspection contingencies | Allowed | Generally not practical |
| Commission | Per the listing agreement | Approved by the court |
| Accepted offer to close | About 45 to 60 days | About 60 to 120 days |
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What Happens if an Heir Objects
An heir who objects to the Notice of Proposed Action, either on the form itself or in a separate written objection delivered before the deadline, takes the sale out of the executor’s hands. Under Probate Code section 10589, the executor can then only complete the sale by getting court approval, which in practice means converting it into a court confirmation sale with overbidding. The buyer’s contract usually survives this, but the timeline stretches and the buyer now faces the risk of being overbid, which some buyers won’t accept.
In my experience, most objections aren’t really about the price. They come from a sibling who feels left out of the process or who doesn’t trust the executor. The most effective prevention I have found is transparency: share the comparable sales, the pre-listing inspection, the list of all offers received, and the reasoning behind the recommended offer with every heir before the notice goes out. My article on when heirs disagree about selling a probate house goes into this further.
A real example: I sold a probate cabin where the estate had full IAEA authority, and the estate attorney wanted at least 21 days in escrow so the heirs could be notified. The first buyer asked for a 7-day close, so I countered on terms only: same price, with a 21-day close to cover the notice period. The notice period ran out without a problem, and the sale recorded 26 days after listing at $307,000 all cash, with a $325,000 backup offer already signed. My advice to the next executor is to write the notice period into the contract from the start so it never becomes a negotiation later.
Does One Path Get a Better Price?
People ask me this constantly, and my answer from years of doing both is that a well-prepared, well-marketed full-authority sale gets market value in Silicon Valley, just like any other listing. Court confirmation sales can produce excellent results when multiple overbidders show up, but the opening offers tend to be lower and the buyer pool is smaller. For a house in decent condition that would appeal to families using a loan, full authority is clearly the better tool. For a teardown or heavy fixer in an area like Cambrian or West San Jose where builders are active, the difference narrows, because the buyers are cash investors either way.
What I Recommend to Executors
- Check your Letters to confirm whether you have full or limited authority before you list.
- If the petition hasn’t been filed yet, ask your attorney about requesting full authority and whether the heirs will waive bond.
- Talk to every heir before accepting an offer, and share the data behind your recommendation.
- Get consent signatures on the Notice of Proposed Action ahead of time when the family agrees.
- If you’re headed to court, price and market the house with the overbid process in mind.
For the full step-by-step process, timelines, and costs, go back to my guide to selling a house in probate in Santa Clara County.
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Sources and Further Reading
- California Courts Self-Help Guide: Property After Someone Dies
- California Probate Code § 10503 (sales under independent administration authority)
- California Probate Code § 10300 (notice of sale for court-supervised sales)
- California Probate Code § 10311 (overbids at confirmation)
- IRS Publication 559, Survivors, Executors, and Administrators
Frequently Asked Questions
What is the difference between full and limited authority in California probate?
Full authority under the Independent Administration of Estates Act lets the executor sell real estate after giving heirs a 15-day Notice of Proposed Action. Limited authority doesn’t include selling real estate, so the sale must be confirmed by the court at a hearing where others can overbid.
How do I know if I have full IAEA authority?
Your Letters Testamentary or Letters of Administration state whether you were granted full or limited authority. Your attorney can also confirm it from the Order for Probate.
Does the 90 percent appraisal rule apply to IAEA sales?
No. Probate Code section 10503 exempts full-authority sales from the 90 percent of appraised value requirement and other court confirmation rules.
Can heirs waive the 15-day notice period?
Yes. If every person entitled to notice signs the consent on the Notice of Proposed Action, the executor can proceed without waiting the full 15 days.
What happens if an heir objects to a probate sale?
If an heir objects before the deadline, the executor can only complete the sale with court approval, which usually turns it into a court confirmation sale with open overbidding.
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