Overbids and Court Confirmation

What are overbids? What does “Court Confirmation Required” mean?

In some California Probate real estate offerings,  court confirmation is required to finalize the sale. This is usually the case when the Personal Representative has Limited Authority. After the initial offer is accepted, the seller through their attorney will petition the court for a hearing date. There court will set a date for a hearing. At the hearing any interested party has the opportunity to make an offer and overbid any accepted offer.  The overbid amount is determined in court during the public auction.  The next bid must be 5% plus $500 above the accepted offer.  The court will then determine the winning bid, which must exceed the minimum bid by at least 5% or more, depending on the court’s discretion.  The overbid amount is the difference between the winning bid and the minimum bid.  The winning bidder is required to deposit a certain amount of money, typically 10% of the bid amount as a deposit, and must provide proof of funds for the remainder of the purchase price.  The overbid process is designed to ensure that the estate receives the maximum possible value for the property, and that all interested parties have an equal opportunity to bid on the property.