Listing a probate house? Every offer you present should tell you who is really buying, how they are taking title, and where the money comes from. This free probate house offer qualification form makes buyers put that in writing, with documents, before their offer is considered.
Download the free fillable form (PDF) Download the listing agreement addendum (PDF)
Why a probate house offer needs qualifying
California Probate Code § 10160.5 says the estate is not liable for any commission or other compensation to an agent or broker who is, directly or indirectly, the purchaser of the property, or whose broker representing the purchaser has any interest in the purchaser. Agents and licensed investors who buy through an LLC can hide that relationship. A listing agent who asks the right questions up front protects the estate, the personal representative and the listing.
What the form collects
- Whether the buyer, or anyone in the buying entity, holds a real estate license, with license numbers and the brokerage’s license number. Buyers are told every license will be verified.
- Whether the buyer is an agent buying on their own behalf, and whether they are buying in their own name or through an entity.
- Any interest the buyer’s agent or brokerage has in the buyer, and any relationship to the listing agent, the personal representative, an heir or the estate’s attorney.
- Whether the contract will be assigned or the property resold before closing.
- A copy of the buyer’s most recent bank or brokerage statement and the source of the money: cash, hard money or a loan, with the lender named. Credit lines are not accepted for the deposit or down payment unless the lender certifies on the form that the buyer can complete the purchase within 90 days.
- Entity documents from the Secretary of State where the entity is registered: Articles of Organization and the filing showing the managing member for an LLC, or Articles of Incorporation and the filing showing the officers for a corporation.
How listing agents use it
Fill in the property address and APN, then send the form to every buyer and buyer’s agent. Make it part of your listing: the free Seller’s Offer Qualification Instruction is an addendum to your listing agreement, signed by the personal representative, that requires the form and its documents with every offer. Put the requirement in your offer instructions and agent remarks. An offer that arrives without the completed form and documents is incomplete and goes back to the buyer’s side for completion before it is considered. Buyers without an agent can ask the listing agent to represent their offer.
This is one of the safeguards taught in EPCAS, The Probate Lab’s course for agents who list and sell probate property. See the EPCAS course.