Can an Executor Be Held Liable for Mistakes in a Probate Sale?

Yes. An executor can be held legally and financially liable if their mistakes in managing or selling a probate property cause harm to the estate or its beneficiaries. This includes errors like selling below fair market value, failing to disclose known issues, or breaching fiduciary duties. In Los Angeles County, where probate cases can involve high-value real estate and complex family dynamics, the legal responsibilities of an executor are especially important.

What Are the Executor’s Responsibilities in a Probate Sale?

In California, an executor has a fiduciary duty to act in the best interest of the estate and its heirs. Their real estate responsibilities include:

• Valuing the property properly (often with an appraisal or BPO)

• Hiring a qualified probate Realtor

• Obtaining necessary court approvals (especially if under IAEA limited authority)

• Marketing the property fairly

• Disclosing all known material defects

• Maximizing the sale price

Failing in any of these areas—intentionally or not—can expose the executor to liability.

Examples of Executor Mistakes That Could Trigger Liability

Executors aren’t expected to be perfect—but they are expected to be diligent, transparent, and fair. Here are some examples where mistakes could lead to legal consequences:

Mistake Why It's a Problem Possible Consequences

Selling the home below market Breach of fiduciary duty Lawsuit by heirs for lost value

value to a friend or investor

Failing to get court confirmation Invalid sale or delays Delays, extra legal fees

when required

Not disclosing known issues Violation of California Buyer may sue for damages

(e.g., roof damage) disclosure law

Using estate funds for personal Embezzlement or misuse Criminal charges or civil suit

benefit

Does Limited vs. Full Authority Affect Liability?

Yes. Executors under limited authority (under the Independent Administration of Estates Act, or IAEA) need court approval for many sale-related actions, which adds more scrutiny. If they skip that step, they can be held personally liable.

Executors with full authority have more freedom—but that also means greater responsibility. They're expected to follow all legal procedures without the court’s hand-holding.

What Happens If Heirs Disagree with the Sale?

If one or more heirs feel that the property was mishandled or sold for less than it was worth, they can:

• File an objection with the probate court

• Request the sale be reversed (if not yet finalized)

• Sue the executor for breach of fiduciary duty

Courts in Los Angeles are especially strict when it comes to executor conduct in high-value probate estates. Even seemingly small mistakes can result in major delays or liability.

How Can an Executor Protect Themselves?

To reduce risk, an executor should:

• Hire a probate-certified real estate professional (like The Borges Real Estate Team)

• Keep detailed records of all actions and communications

• Get proper legal counsel

• Avoid conflicts of interest (like selling to family without disclosure)

• Follow AB 2016 compliance if the property is in LA or Orange County

What If You’re an Executor and Feel Overwhelmed?

Probate sales in Los Angeles can be intense—especially with family pressure, legal deadlines, and large home values at stake. If you're unsure of how to move forward without making costly mistakes, our team specializes in helping executors:

• Understand their responsibilities

• Price the property right

• Navigate AB 2016 rules

• Avoid liability pitfalls

You don’t have to do this alone. Learn more about our support for executors here:
👉 Borges Probate Services

Final Thought

Being an executor comes with major legal and financial responsibilities. One wrong move during a probate sale—especially in Los Angeles County—can create serious liability. But with the right support and strategy, you can protect yourself, the estate, and the beneficiaries.