Probate & Fiduciary Sales

Full Authority vs. Limited Authority Under the IAEA

This is the first thing we ask a personal representative, and it is often the first time anyone has asked. The answer is on the Letters. It determines whether the sale is a comparatively normal listing or a court-calendar exercise with an open bid at the end, and almost every downstream decision follows from it.

Where does the authority come from?

Probate Code section 10450(a) provides that to obtain authority to administer the estate under the Act, the personal representative petitions the court for that authority either in the petition for appointment or in a separate petition filed in the estate proceedings. Section 10450(b) provides that the petition may request either full authority or limited authority.

So the authority is requested, and granted or not, at the front of the case. It is not a status the representative acquires by conduct, and it is not something a brokerage can assume from context. Beneficiaries who object, a will that says otherwise, or a bond issue can all change the outcome.

What exactly does limited authority exclude?

Section 10403 is unusually direct. It defines "limited authority" as authority to administer the estate under the Act that includes all the powers granted under that part except the power to do any of the following:

• Sell real property.
• Exchange real property.
• Grant an option to purchase real property.
• Borrow money with the loan secured by an encumbrance upon real property.

Section 10501(b) states the same boundary from the other direction: a personal representative who has obtained only limited authority is required to obtain court supervision, in the manner provided in the code, for a sale of real property, an exchange of real property, the grant of an option to purchase real property, and borrowing money secured by an encumbrance on real property.

Every item on that list is real property. Limited authority does not restrict the administration generally; it carves out the estate's real estate.

Does full authority mean the court is out of the picture?

No, and this is a common misreading. Section 10501(a) applies "whether the personal representative has been granted full authority or limited authority" and requires court supervision for a list that includes allowance of the personal representative's compensation, allowance of compensation of the attorney for the personal representative, settlement of accounts, and — subject to section 10520 — preliminary and final distributions and discharge. The list also covers self-dealing transactions such as a sale of estate property to the personal representative or to the attorney for the personal representative, subject to the exceptions in section 10501(c).

Full authority changes how the house is sold. It does not end the probate.

How does each path change the sale?

Section 10503 is the hinge. It provides that where a personal representative sells estate property under Act authority, the requirements applicable to court confirmation of real property sales — expressly including sale at not less than 90 percent of appraised value, publication of notice of sale, and court approval of brokers' commissions — do not apply to the sale.

What is the Notice of Proposed Action, and when does it matter?

The Act has its own notice mechanism. Section 10581 requires notice of proposed action to be given, except as provided in sections 10582 and 10583, to each known devisee whose interest in the estate would be affected by the proposed action, each known heir whose interest would be affected, each person who has filed a request for special notice, and the Attorney General where a portion of the estate would escheat to the state and its interest would be affected.

Section 10586 requires the notice of proposed action to be delivered to each person entitled to it not less than 15 days before the date specified in the notice on or after which the proposed action is to be taken. If mailed, it goes to the person's last known address.

For a listing, the practical point is scheduling. Where a Notice of Proposed Action applies, there is a fixed waiting period built into the transaction that has to be reflected in the escrow timeline rather than discovered halfway through it. Whether the notice is required for a particular sale is a legal question for the estate's attorney.

Which is better for the estate?

Neither is universally better, and the choice is generally not the broker's to make. Full authority tends to be faster, gives buyers a more familiar transaction, and avoids the risk of an overbid unwinding a negotiated deal. Court supervision provides an independent check on price and a court order that can insulate the representative where beneficiaries are in conflict. Some representatives with full authority elect to seek confirmation anyway for exactly that reason. That is a decision for the representative and the estate's attorney, on the facts of the estate.

What the broker owes either way is the same thing: a price supported by evidence, exposure broad enough to prove the market was tested, and a schedule that respects the deadlines the estate is actually operating under.

How we work with you

• Confirming the authority before we price anything. We review the Letters with the representative and confirm the path with the estate's attorney, because a limited-authority listing is priced and marketed differently from day one.
• Pricing the property defensibly. A written opinion of value with comparable sales, adjustments, and condition assumptions on the page. Under limited authority we also position that opinion against the estate's appraised value and the 90 percent floor, so the representative knows the confirmable range going in.
• Coordinating with the estate's attorney. Counsel for the estate drives authority, notice, and filings. We supply the market evidence, transaction documents, and dates their filings depend on, and we route legal questions rather than answering them.
• Managing court timelines. Escrow, contingency, and closing dates are built around hearing availability and any applicable notice period rather than a default 30-day close.
• Marketing the property properly. Professional photography, full MLS and syndication exposure, broker outreach, and open access. Under limited authority this matters twice over — the accepted offer is only an opening bid, so the estate needs more than one credible buyer prepared to attend the hearing.
• Handling overbid mechanics. Buyers are told in writing and early that the sale may be subject to confirmation and overbid. We prepare interested parties on deposit form and amount, brief the representative on what to expect in the courtroom, and attend the hearing.

This page is general process information for California property owners and fiduciaries and is not legal or tax advice. Sea to Sierras Realty, Inc. is a licensed real estate brokerage, not a law firm, and does not provide legal or tax services. The authority granted in a particular estate, the applicability of the Notice of Proposed Action procedure, and local court practice depend on the specific facts and change over time. Consult a licensed attorney or CPA about your situation before acting. Sea to Sierras Realty, Inc. · Elizabeth A. Tresp, Broker · California DRE #02013661.