What is the Minimum Bid for a Court Confirmation Sale in Los Angeles?

In Los Angeles County, the minimum overbid for a court confirmation sale is at least 10% of the first $10,000 of the accepted offer, plus 5% of the amount over $10,000. This formula is mandated by California Probate Code §10311 and is used to encourage competitive bidding in court.

Understanding Court Confirmation Sales in Probate

When a property in probate requires court confirmation, it means the sale isn’t final until a probate judge approves it. The court also allows others to bid on the property during the hearing—this is called overbidding.

This process ensures transparency and protects the estate’s best interests, especially when heirs or creditors are involved.

How Is the Minimum Overbid Calculated?

The minimum bid starts by taking the accepted offer and applying this statutory formula:

• 10% of the first $10,000 of the offer

• 5% of the remaining balance

Example:
If the accepted offer is $600,000:

• 10% of $10,000 = $1,000

• 5% of $590,000 = $29,500

• Minimum overbid = $600,000 + $30,500 = $630,500

So, a new buyer must offer at least $630,500 to compete in court.

Why Does the Court Require Overbidding?

The goal is to get the highest possible price for the estate. In probate, the personal representative has a fiduciary duty to act in the best interest of all beneficiaries. By allowing public overbids, the court ensures no favoritism or underselling occurs.

Where Do Court Confirmations Happen in Los Angeles?

Court confirmations for probate real estate sales typically take place at the Stanley Mosk Courthouse in downtown Los Angeles (111 N. Hill St). If the case is filed in another regional branch, the confirmation hearing may occur there—but Los Angeles probate courts handle the majority of these matters.

Can Anyone Overbid?

Yes, any qualified buyer can show up on the day of the court hearing and place an overbid. However:

• They must bring a cashier’s check for 10% of their proposed purchase price

• They must be ready to close quickly

• There are no contingencies allowed (no inspection, appraisal, or loan contingencies)

This makes the court confirmation process highly competitive and fast-moving.

What Happens If No One Overbids?

If no one places a higher bid at the hearing, the court confirms the original buyer’s offer. That buyer moves forward with escrow as planned.

However, if a new buyer overbids and wins the property, they become the new buyer and escrow resets with them.

Tips for Overbidding Successfully

• Do your homework know the comps and bring your proof of funds.

• Arrive early probate court is busy and punctuality matters.

• Be prepared to act fast once the court confirms the sale, there’s no backing out.

• Work with a probate real estate specialist timing, forms, and financing must all be perfect to win.

Local Insight: Overbids in Los Angeles vs. Orange County

While both counties follow the same California Probate Code, Los Angeles tends to have more competition and longer court delays. That means overbidding is more common here, especially in sought-after neighborhoods like Highland Park, Pasadena, or West LA.

Final Thoughts: Work With a Probate Pro

Navigating probate in Los Angeles—especially court confirmation sales—requires experience. From calculating overbids to showing up in court, every detail matters.

If you’re bidding on a probate property or handling one as an executor, we can guide you every step of the way.

Contact us here for help with probate property sales in Los Angeles.