Q May the personal representative enter into a contract with a licensed real estate broker to sell estate real property?
A Yes. The personal representative may enter in to an exclusive right to sell contract with a broker for an original period of not more than 90 days plus one or more extensions each limited to the same periods (Cal. Prob. Code § 10150(c)). This real estate broker may cooperate with other brokers and may advertise the property on the MLS (Cal. Prob. Code § 10150(a)). Prior court approval must be obtained for each extension unless the personal representative is acting under IAEA. However, even here, if the personal representative has obtained only “limited” power rather than “full” power to administer the estate, court supervision of the sale of real property is required (Cal. Prob. Code § 10501(b)).
Q May a listing broker obtain an extension of the listing contract if the estate real property does not sell within the original listing ninety day period?
A Yes. However, any extension of the listing given requires prior court approval unless the personal representative is acting under IAEA. Each extension shall not exceed 90 days (Cal. Prob. Code § 10150(a)). Under IAEA authority, the personal representative may give discretionary 90 day extensions to the original period as long as the total time is less than 270 days. Once 270 days are exceeded, the IAEA personal representative must give a Notice of Proposed Action of such further extension (Cal. Prob. Code § 10538(c)). (See Section VII below for more information about the IAEA.)
Q Is there a required form that must be used for listing estate real property?
A Technically, there is no required form that must be used. However, C.A.R. form PL (“Probate Listing”) is recommended even where the personal representative has full authority under the IAEA. This is for two reasons: First, the PL form limits the initial listing period to 90 days. This rule applies to all probate listing agreements even where the personal representative has authority under the IAEA.. Second, the PL form guides the agent to properly describe the name of the seller and correctly set up the signature line.