Probate sales in Orange County don’t have quite the sex appeal of other types of transactions.
CALIFORNIA PROBATE SALES AND THE JITTERY AGENT
A California probate sale is a unique bird and may be subject to a court confirmation hearing.
Probate sales and commissions are regulated by statute and enforced by the courts.
Only a select few agents are likely to participate in the court confirmation hearing needed to cement the purchase transaction. Consummating a probate sale requires a fair measure of judicial comfort. Standing before a judge can be nerve-racking for any jackleg agent--and your needs may not be expressed in the heat of the moment by a jittery agent.
Getting a transaction off the ground isn't difficult with the many tools agents have at their disposal. Perhaps most prominent are the boilerplate forms approved by the California Association of Realtors (C.A.R.). C.A.R forms cover all basic real estate transactions, including probate, but the nuances of probate are not found in forms. The extent to which California probate sales are understood vary from agent to agent, and the consumer is tasked with learning which agent can successfully maneuver through the system of probate court confirmation.
While complex, probate estates are also highly personal, too. Often families from out-of-state rely heavily on their probate professional. Careful consideration should be given to choose a probate practitioner with knowledge of the California Probate Code and the process of court confirmation for probate auctions.
PROBATE COURT AUCTION vs FORECLOSURE AUCTION
Probate and foreclosure may both involve an auction type sale, but the similarity stops there.
In California, unlike a probate auction, most foreclosures get to auction by way of a non-judicial process. The process commences when a Notice of Default is filed. In 90 days, a Notice of Trustee Sale follows. Three weeks later an auction takes place, usually on the courthouse steps.
Probate auctions, by contrast, are subject to court confirmation. It is at the confirmation hearing that bidding may occur, hence, the probate auction.
THE UNCONDITIONAL LOVE OF PROBATE AUCTION
Probate sales are rule-intensive and designed by statute to be competitive. Aside from court intervention, they differ materially from other types of transactions.
Buyers of California equity and short sales often condition purchases on financing and inspection. California probate sales, however, require that bids made at court confirmation hearings be unconditional.
No inspection contingency. No financing contingency.
Any transaction may become hardboiled depending on the circumstances, though probate sales are more apt to need special care.
Choose your Realtor wisely!
By: Brian L. Sirota, Esq.
(714) 501-7660; (877) 641-6964
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Recent Article: Dualing Trust: What a Concept!
“Trust me!”
It sounds greasy, already.
To make matters worse, I plan to ditch good ole-fashioned ethics. So how can I expect you to trust me---to talk about trust, no less?
Let’s cut to the chase. Dual agency has been a hotbed of controversy and this evokes a "trust" issue.
Despite most agents having a correct understanding of the procedural requirements of dual agency disclosure, problems continue to arise because consumer expectations may differ markedly from the Realtor Code of Ethics playbook.
Let’s take a look.
DUAL AGENCY IN PRACTICE
In single-party representation, agents are charged with a duty of loyalty. This entails placing our clients’ interests ahead of our own. In dual agency, by contrast, we are unable to discharge our obligation in this way. At the heart of the problem is our belief that all clients are entitled to our best negotiation effort. Isn’t that what consumers trust agents to do? Ironically, it's that very "trust" that can become complicated.
The dual agency begins as an innocent creature. Typically, when we engage a listing, we have a clear duty of loyalty to the seller, but when we procure a buyer, the tenor of our duty should change. Difficulty arises because lots of emotions and expectations continue at play. The seller still expects absolute allegiance, and the agent has emotional carryover from the original listing. It’s human nature.
It’s as though loyalty has a Siamese twin. One head is the duty of devotion—the plain meaning of loyalty. This is the more commonsensical side. The other head, however, is understood to a lesser degree. This is the loyalty of the Code.
The consumer "trusts" we’ll know the difference between them.
DUAL AGENCY UNDER THE MICROSCOPE
This is an intense subject because of competing interests. Before taking a position, pro or con, be sure to understand dual agency. Disclosure is the easy part. There’s a broadly misunderstood view that proper disclosure of dual agency is sufficient to avoid problems.
Plenty of cases exist where parties were pleased as punch with their dual agent transaction…..initially. When a dispute unrelated to dual agency would arise years later, however, the litigation process forced the transaction under the microscope. There, dual agency took on a new life. When parties, documents, communications and third parties become witnesses, a reconstructed transaction can reveal some shocking things. These are the things you need to know!
Out of the blue, an off-handed email you wrote your seller takes center stage: “George, I’m sure if you come down $500, I can make this work.” You remember, the buyer would’ve walked unless George made a small concession as a gesture of good will. That’s your story, and you’re sticking to it. After all, you made several disclosures of your dual agency and everyone was fine with it.
But now, things ain’t so fine.
WHAT JUST HAPPENED….AND WHY?
Simply, you exerted price influence over the parties.
In states where dual agency is permissible, a double-end transaction yields a great payday for an agent. Therefore, the ability to both obtain a listing and procure a buyer is highly coveted.
On the other hand, representing both buyer and seller presents an inherent conflict of interest. For this reason, jurisdictions differ on the issue. Some hold this activity unethical on its face, while others provide parameters to make it workable.
In California, for example, agents are permitted to simultaneously represent buyer and seller. We sidestep the conflict with the proviso that agents not participate in price negotiation. It’s an end-around the double-end.
RETHINKING MARRIAGE TO THE SELLER
The listing is your marital contract, but when you procure a buyer, your obligation to the seller is changed. If the relationship isn’t redefined to include your relationship with the buyer, you’ll be in breach of both relationships.
No one likes a two-timer, right?
On occasions where a dual agent fails to exercise restraint and becomes engaged in the negotiation process—action otherwise lauded and expected—the result is a breach. Innocent emails takes center stage and, now, as Snagglepuss might say, “Exit stage left!”
Despite the conundrum, dual agency is manageable—though still risky—as long as you recognize the rules of ethics are not necessarily intuitive. If you don’t know the rule and its correct application….watch out!
I “trust” you understand.
By: Brian L. Sirota
Good morning fellow elevator captives!
You’re probably wondering why I pushed the “stop” button. Fret not. You’ll forget your claustrophobia before you can say “alprazolam.” In the meantime, please resist the urge to scratch your way out.
Ok, let’s get to the real value:
1. Buyer Rebates & Seller Discounts like no other California Realtor/Broker.
2. FREE Legal Consultation when you use Bristar Realty to represent you in buying or selling your next California property.
3. You get two professionals for the price of one.
4. You get 20 years of negotiating practice against the most skilled attorneys and real estate professionals in the business.
5. You get the peace of mind of being free of present and future complications. That means minimizing the liability that could haunt you for years to come.
No other real estate professional in the Golden State is able to provide the same value as Bristar Realty.....honest injun!
Would you care to exchange business cards?
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Note: On the Bristar Realty business card, find details of buyer rebates and homeowner discounts at www.BristarRealty.com. In addition to short sales and conventional sales (equity sales), Bristar can also assist foreign buyers, out of state probate representatives, and can provide gentle guidance in cases involving divorce, bankruptcy, and probate. We associate with some of Orange County’s premier law firms and forensic experts.
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Brian L. Sirota, Esq. © 2011 *The Elevated Elevator Speech*
I have a new night job, and for those who are curious, this age-old chicken riddle is a clue.
Let's first rule out a 
few things:
These feathers aren't working the night shift as a security guard, or as a night clerk at the local motel, or making donuts for early morning sales.
Here's another hint:
我是代表亚洲的投资者 * and 亚洲投资者购买在加州的房地产 **
So:
Why did the chicken cross the ocean?
He was glued to the Realtor!
I indeed have a new client across the ocean, and the time difference means I work night hours while Asian investors are enjoying breakfast. But I'm happy to do it!
Orange County's income properties are strong as fear creates a strong rental market.
It's where the music is playing!
Brian L. Sirota, Esq., @ 2011 *Why Did The Chicken Cross the Ocean?"
Representing Foreign Investors in Southern California
Once we take a listing, we are duty bound to put forth our best efforts. (See, Realtor manual, Page One). In our attempt to gain the listing, we try to impress the seller with our listing presentation. (See, Realtor manual, Page Two).
Even my pet rock knows the basics. 
So why read on? No reason, really. Thanks for reading my non-blog blog. Good to see you. Take care. Best of luck in your career!
Still here? You curious little devils!
Here's the crux: Creatively handling objections at or before the listing presentation.
For my two remaining readers, the tail wagging the Realtor principle involves the oh-so delicate moments that precedes a client’s decision to hire you. When the consumer has the most leverage hiring a Realtor, the greatest opportunity to showcase negotiation skills and creative solutions present themselves.
I read an interesting blog by Tanya Nourwens. I will probably sell on my own, but would you mind doing a CMA She tells the story of a colleague (mortgage broker) who asked for a CMA, despite his stated intention of going FSBO, and seeking a CMA from another agent, as well. With other work on her plate, she asked readers their thoughts on obliging her colleague. She's from Montreal, but principles affecting listing presentations apply in Orange County, California, too. They're universal.
The blog yielded a broad range of comments: Some thought it was a waste of time. Some advised doing it because the seller may decide to hire you, anyway. Some thought it would create good karma or earn them another referral from the seller. Some suggested charging a fee, or only doing it time permitting. Still, others suggested a short hand CMA without bells and whistles or deeper research.
Of several dozen replies, one suggestion was unique. Alan May’s idea was to bring a newbie along to cut their teeth by giving or watching a presentation. This turning-lemons-into-lemonade idea gained my favor. Alan’s reply was multi-tiered and cited many of the positive approaches summarized in the last paragraph.
I like Alan’s reply on two counts. First, I believe presentations are rarely a waste of time. I query how many have genuinely suffered an opportunity cost, and the expense is scant.
To keep the tail from wagging the Realtor in Tanya's Scenario, I’d:
1. Respect my colleague’s decision to market their listing as a FSBO;
3. Create a listing contract contingent on going non-FSBO!
Do share a story of turning a one-sided situation to your favor, or changing the spin to something favorable. We'd love to hear about it, and consumers probably do, too!
By: Brian L. Sirota, Esq., Counselor at Law/Real Estate Broker
*The Tail Wagging the Realtor* © 2011 Making the Best Listing Presentation
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Bristar Realty provides 110% representation at 50% of the cost (Buyer Rebates/Seller Discounts). Brian L. Sirota is a California Realtor, Broker, and Attorney of 20+ years. CA's most unique Realty.
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