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We know real estate can feel complicated.
Below are some of the most common questions we get about specialized situations like Probate Sales, 1031 Exchanges, and Prop 19.
FREQUENTLY ASKED QUESTIONS
PROBATE SALES
What is a probate sale?
A probate sale happens when a homeowner passes away and the property is part of their estate. If the home wasn’t already placed in a trust, the court may require the sale of the property to distribute the proceeds to heirs or pay debts.
Who decides how the property is sold in probate?
The probate court oversees the process, but the executor (or administrator) of the estate is usually responsible for working with a real estate professional to sell the property. The court must approve the sale to ensure it’s fair and in the best interest of the heirs.
Can I buy a probate property like a normal home?
Yes, but probate sales often involve extra steps like court approval, potential overbids, and longer timelines. Working with a probate-certified agent ensures you understand the process and don’t risk losing the property or your deposit.
1031 EXCHANGES
What is a 1031 exchange?
A 1031 exchange allows real estate investors to sell one investment property and reinvest the profits into another “like-kind” property — while deferring capital gains taxes. It’s a strategy for growing wealth without taking an immediate tax hit.
Do I have to buy the same type of property I sold?
Not exactly. “Like-kind” simply means the new property must also be held for investment or business purposes. For example, you could sell a rental house and purchase a small apartment building, or exchange land for a commercial property.
Are there deadlines I need to know about?
Yes. You must identify potential replacement properties within 45 days of selling your original property, and you must close on one of them within 180 days. Missing these deadlines can disqualify your exchange.
PROP 19
What is Prop 19?
California’s Proposition 19 is a law that allows certain homeowners — mainly those over 55, people with disabilities, or victims of wildfires/natural disasters — to transfer their property tax base to a new home, potentially saving thousands in taxes.
Who benefits from Prop 19?
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Homeowners 55 or older
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People with severe disabilities
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Victims of wildfires or natural disasters
These groups can move to a new home anywhere in California and keep (or even lower) their previous property tax base.
Does Prop 19 affect inherited property?
Yes. Prop 19 also changed the rules for children inheriting property from parents. In most cases, the inherited property must be the child’s primary residence to keep the low property tax base. If it’s turned into a rental or second home, property taxes will usually be reassessed.
