California Real Estate Salesperson Exam Practice - Quesiton 14

Question

The commission to be paid to a broker in a probate sale is set by the:

Selections

• A. Executor

• B. Administrator

• C. Court

• D. Estate manager

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Answer: C

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5 Keys Summary

1. The commission in a probate sale is determined by the Court.

2. A probate sale is a transaction transferring property from a deceased person's estate, often executed pursuant to a court order.

3. The probate court oversees the process and appoints an administrator or manages the executor's distribution of assets.

4. An administrator manages the estate, but the court retains the final authority to approve sales and associated costs, including broker commission.

5. Sales requiring court confirmation involve the judge or court approving the transaction terms and the agent’s compensation.

Explanations

A probate sale involves the transfer of property belonging to a deceased person's estate. In such sales, if the process requires court procedures, the court is involved in confirming the successful bidder and, by extension, would set or approve associated costs, including the broker's commission. While an administrator is appointed by the probate court to manage the estate and distribute assets, the court itself retains oversight in determining key aspects of the sale, especially when court confirmation is necessary.

Concepts Definitions

• Probate Sale: A sale of real property that occurs as part of the legal process of administering a deceased person's estate.

• Court Confirmation: A legal requirement in some probate sales where the court must approve the terms of the sale, which implies judicial oversight of all aspects, including commissions.

• Administrator: An individual appointed by the probate court to manage and distribute the assets of a deceased person's estate when no executor is named in a will or there is no will.

• Commission: Compensation, typically a percentage of the sales price, received by a broker for services rendered in a real estate transaction.