What is AB 2016 and How Does It Affect Probate Real Estate in California?

Assembly Bill 2016 (AB 2016) is a new California law that requires real estate professionals to disclose whether a property sale involves probate or trust, starting July 1, 2024. For probate real estate in Los Angeles County, this means clearer transparency for buyers and stricter compliance for listing agents.

What Is AB 2016 in Simple Terms?

AB 2016 is a California state law passed in 2024 that affects how real estate sales involving probate, trusts, or conservatorships are handled.

Key requirement:
If a home is being sold as part of a probate, trust, or conservatorship case, the seller’s agent must disclose that status upfront on the MLS and marketing materials before accepting offers.

When Did AB 2016 Take Effect?

AB 2016 went into effect on July 1, 2024. From that date forward:

• The listing must clearly state whether the sale involves probate or a trust

• Failure to disclose could lead to civil penalties and buyer cancellation rights

• This applies to all California counties, including Los Angeles, Orange, and San Diego

Why Was AB 2016 Created?

The bill was introduced after buyer complaints about:

• Unexpected probate delays

• Discovering post-offer that a court had to approve the sale

• Misunderstandings about timelines and bidding procedures

The law was designed to improve transparency and protect consumers by requiring real estate professionals to flag potential complexities before buyers submit offers.

How Does AB 2016 Impact Probate Sales in Los Angeles?

Here’s how AB 2016 changes things for probate listings in Los Angeles County:

1. MLS Listings Must Clearly Indicate Probate or Trust

→ No more hiding it in the fine print. The listing’s property description must include a statement like:

“This is a probate sale. Court confirmation may be required.”

2. Buyers Are Better Informed Upfront

→ Buyers (and their agents) now know exactly what they’re walking into including potential delays, court timelines, or overbidding procedures.

3. Stricter Oversight for Listing Agents

→ LA-area agents must understand the probate process and stay in compliance to avoid fines or contract disputes.

4. Greater Need for Probate-Specialized Realtors

→ If you're selling a probate property, it’s more important than ever to work with a probate expert who understands how to market and disclose properly under AB 2016.

What Kinds of Properties Are Covered by AB 2016?

AB 2016 applies to any residential property being sold in California that falls under:

• Probate court oversight

• Living trust administration

• Conservatorship or guardianship sales

This includes:

• Single-family homes

• Condos

• Duplexes

• Residential income properties (up to 4 units)

What Happens If an Agent Fails to Disclose Under AB 2016?

If the agent does not disclose that the sale is a probate or trust transaction:

• The buyer may have legal grounds to cancel the contract

• The seller’s agent may face disciplinary action

• There could be civil liability or financial penalties

Real estate boards throughout Los Angeles and California are encouraging agents to document and timestamp all disclosures to avoid legal issues.

Does AB 2016 Change How Probate Works in Court?

No AB 2016 does not change the probate legal process.
It only affects how real estate professionals advertise and disclose the property status.

You still need:

• Letters of Administration

• Full or limited authority

• Court confirmation (if limited authority)

• Proper notice of proposed action (for full authority sales)

But buyers now know before submitting an offer what to expect.

Why Is This Important for Heirs and Executors?

As a seller whether you're an heir, administrator, or executor AB 2016 protects you from deal fallout.

With disclosure required upfront:

• Buyers can’t back out claiming they were misled

• You avoid wasted time and frustrated buyers

• You reduce the chance of price renegotiation or buyer cancellation late in escrow

🔑 Bottom Line: AB 2016 creates a smoother, cleaner process for probate real estate in LA.

How Should You Prepare Your Probate Listing?

If you're selling a home through probate in Los Angeles, here’s what you should do under AB 2016:

✅ Steps to Comply with AB 2016:

1. Work with a probate-literate realtor

2. Include a clear disclosure in the MLS and all ads

3. Confirm whether court confirmation is needed

4. Provide buyers with a copy of the letters of authority

5. Coordinate with your probate attorney on timelines

Local Tip: Pasadena and LA Courts Are Watching This

The Stanley Mosk Courthouse in Downtown LA and Pasadena Probate Court have emphasized AB 2016 compliance. In fact, we've already seen cases where probate sales were delayed due to disclosure issues.

Listing with an experienced probate team can prevent hold-ups and protect your sale.

Final Thoughts: Is AB 2016 a Good Thing?

For most sellers and buyers, yes.

✅ It brings clarity
✅ It prevents misunderstandings
✅ It keeps bad agents in check
✅ It makes it easier to close escrow smoothly

But it also puts more responsibility on your real estate team. That’s why working with a probate-certified realtor in Los Angeles is more important than ever.

Need Help Selling a Probate Property in LA?

We’re fully trained on AB 2016. We’ll make sure your listing is compliant, your disclosures are airtight, and your probate sale goes smoothly no court drama, no buyer surprises.

👉 Get a free probate consultation