Buying a Property at a Probate Sale in Los Angeles
July 18, 2011
Purchasing a property in Los Angeles that is a probate is very easy. The property is listed on the MLS, so your Realtor can help you find what’s out there and help you find a good property. You will likely need 10% down to make an offer. There are two types of probates. With court confirmation and without. If it has court confirmation you will need to go to court and it will be subject to over bidding. Over bid amounts are usually 5% above the accepted offer plus $500. After the first overbid you can bid in increments of your choosing. If you are an over bidder you will need to have a real estate agent present with you are the time of bidding. The judge will ask if there are any overbidders for the property you are interested in. You will need to step forward with your cashiers check for 10% of the overbid amount plus 10% of the maximum amount you plan on bidding.
If there is no overbid it’s like purchasing a regular property. If you are the accepted offer keep in mind that a probate will likely not pay for termite and some items that are normally a seller’s responsibility. The sale is likely as-is. Depending on what your offer is, it’s customary not to schedule a court date until the buyer has removed their contingencies (inspections & loan). If there aren’t any overbidders at the court confirmation then you can close escrow afterwards usually within 15 days.
