Can an Executor Be Held Liable for Mistakes in Probate Sales?

Yes — in California, an executor can be held personally liable for mistakes in a probate sale if their actions cause financial harm to the estate, violate fiduciary duties, or result in loss to heirs. Liability often arises from negligence, failure to follow court procedures, or conflicts of interest.

What Is the Executor’s Legal Duty in a Probate Sale?

Under California law, executors have a fiduciary duty to:

• Act in the best interest of all heirs

• Manage and preserve estate property

• Maximize value during the sale

• Follow court and statutory procedures

Violating any of these duties — even unintentionally — can expose the executor to personal financial responsibility.

What Mistakes Can Trigger Liability?

Common missteps that lead to lawsuits or court sanctions include:

1. Underselling the Property

• Accepting a low offer without proper valuation or market exposure

• Not disclosing the sale to interested heirs

• Failing to secure court confirmation (when required)

2. Conflict of Interest

• Selling to a relative or friend without full disclosure

• Benefiting personally from the sale

3. Failure to Disclose Material Defects

• Not completing the TDS (Transfer Disclosure Statement)

• Skipping necessary inspections

4. Neglecting Property Maintenance

• Letting the home fall into disrepair

• Failing to pay taxes, insurance, or utilities

5. Not Using a Probate-Experienced Realtor

• Choosing an agent unfamiliar with court timelines or overbid rules

• Mismanaging buyer expectations or court delays

Can the Executor Be Sued?

Yes. Heirs or beneficiaries can sue the executor if they believe the estate suffered due to:

• Negligence (e.g., ignoring deadlines)

• Misrepresentation (e.g., hiding facts)

• Self-dealing (e.g., buying the house themselves)

• Breach of duty (e.g., poor record-keeping or illegal actions)

In serious cases, the court can:

• Remove the executor

• Impose financial penalties

• Require reimbursement from personal funds

Real Example: A Costly Mistake in LA Probate

A Los Angeles executor listed a probate home without court confirmation (when it was required). The buyer backed out at the last minute, the heirs sued, and the court held the executor liable for:

• Lost sale proceeds

• Realtor fees

• Attorney costs

Had they hired a probate-certified agent, the delay and liability could’ve been avoided.

How Can Executors Protect Themselves?

✅ Hire a probate attorney
✅ Use a real estate agent with probate experience
✅ Maintain clear records of all transactions
✅ Notify heirs of every major decision
✅ Avoid self-dealing or shortcuts
✅ Follow deadlines set by the court

What If I Made a Mistake Already?

Mistakes happen. But early action can reduce liability:

• Inform the court and seek guidance

• Communicate with heirs to find resolution

• Get help from probate professionals (attorney, agent, accountant)

Local Tip: Don’t DIY in LA County Probate

Los Angeles County probate sales have strict court rules. Using a generic listing agent or missing DE-260 filings could cost you tens of thousands — or worse, result in personal lawsuits.

Need a Probate-Savvy Real Estate Team?

We’ve helped dozens of LA County and Pasadena executors protect themselves while maximizing estate value. Let us handle the sale while you stay compliant and stress-free.

Talk to a Probate-Safe Real Estate Expert