How to get court approval to sell real property and pay off the mortgage in California

Short answer: If the house is part of a probate estate or is owned by someone subject to a conservatorship, you generally must petition the probate or conservatorship court for authority to sell the home. If the home is held in a living trust and the trust grants the trustee sale authority, you often can sell without court involvement. The court process includes filing a petition, giving notice to interested parties, attending a hearing, and obtaining a court order authorizing the sale. Proceeds normally pay off the mortgage at closing, but the court may require a proposed distribution or accounting before final distribution.

Detailed answer — when the court’s approval is required and why

California courts supervise sales of real property when a third party manages someone else’s assets. Common situations that require court approval include:

Probate administration — the decedent’s estate includes the house and an executor or administrator (personal representative) must sell it to pay debts or distribute proceeds.
Conservatorship of the estate — a conservator has control of a conservatee’s assets and must obtain court permission to sell real property unless the order or statute already authorizes the sale.
Court-ordered sale in family law, bankruptcy, or partition actions — different courts and procedures may apply.

If the property sits in a valid revocable living trust and the trust instrument gives the trustee authority to sell, the trustee usually sells through the normal real estate process without going to court. When in doubt, ask whether the title shows ownership by a trust, by an individual, or by an estate/conservatorship.

Official general resources:

California Courts — Probate self-help: https://www.courts.ca.gov/selfhelp-probate.htm
California Courts — Conservatorships: https://www.courts.ca.gov/selfhelp-conservatorship.htm
California Probate Code (all divisions): https://leginfo.legislature.ca.gov/faces/codes.xhtml?lawCode=PROB

Step-by-step process you should expect in probate or conservatorship

Confirm the legal status of the property. Check title records and any trust documents. Determine whether the house is in probate, in trust, or subject to a conservatorship.
Consult the court file or local court clerk. If the estate or conservatorship already exists, review the file for prior orders that authorize sales. Call or visit the local probate clerk to learn local form requirements and filing fees.
Prepare and file a petition or application. For a probate sale, the personal representative files a petition for an order authorizing sale of real property. For a conservatorship sale, the conservator files a petition or an application for instructions or for authority to sell. The petition explains why the sale is in the estate’s or conservatee’s best interest and attaches supporting documents (property description, proposed buyer contract, broker’s listing agreement, preliminary title report, and mortgage payoff information).
Provide required notice. The court will require notice to interested persons: heirs, beneficiaries, creditors, and sometimes the public. Rules vary by county and by case type. The notice allows parties to object or request a hearing.
Attend the court hearing. The judge reviews the petition, any objections, and evidence that the sale is reasonable and in the best interest of the estate or conservatee. The judge may approve the sale, approve it with conditions (for example, minimum bid or overbid procedure), or deny it.
Follow any court-ordered sale procedures. In probate, the court may set an overbid period (a chance for a third party to outbid the buyer at hearing or over a set period). The court’s order will specify how to handle deposits, overbids, and confirmation of sale.
Close escrow and pay liens. Once the court signs the order, escrow can close. At closing, mortgage lenders provide a payoff statement and the mortgage is paid from sale proceeds. Make sure escrow receives any required court documents (the signed order and any court-issued certificate) before closing.
File a final accounting or status report as required. The court may require the personal representative or conservator to file an accounting showing how sale proceeds were used (mortgage payoff, costs of sale, creditor payments, distributions to beneficiaries). Receive court discharge if necessary.

Documents and information you will likely need

Death certificate (for probate) or letters of conservatorship/letters testamentary.
Recorded deed and title report or preliminary title report.
Mortgage statements and demand/payoff letter from the lender.
Purchase agreement or proposed listing agreement and broker information.
Property appraisal or broker price opinion to justify the sale price.
Court forms required by your county — the probate clerk or the court website lists them.

Typical timeline and likely costs

Expect several weeks to several months. Time varies with notice periods, court schedules, and whether anyone objects. Costs may include court filing fees, publication costs for notice, attorney fees, realtor commissions, escrow/title fees, and payoff of the mortgage and other liens.

What happens to the mortgage at closing

At escrow closing the lender will accept the payoff amount and release the mortgage lien once it receives the funds. The escrow officer or closing agent typically orders the payoff demand shortly before closing so the amount is accurate. If the sale price is not sufficient to pay the mortgage and other costs, you must address that shortfall before closing (possible options include lender approval of a short payoff, bringing funds to close, or withdrawing the sale if the court and buyer agree).

Special situations

Trust-owned property: If a trust instrument authorizes the trustee to sell, the trustee can usually sell without court approval. Keep a record of the trustee’s authority and provide title companies the trust documents and trustee certification.
Joint ownership or community property: If another co-owner or spouse holds title, their consent may be required or the court may need to join them.
Mortgage is underwater: If the mortgage balance exceeds market value, selling requires solutions (lender acceptance of short payoff, lender approval of a short sale, or additional funds to cover the lien). Lenders must agree to short sales, which adds time and negotiation.

Where to get forms and local requirements

Check your county superior court’s probate department for local rules and forms. The California Courts website has general probate and conservatorship guidance: https://www.courts.ca.gov/selfhelp-probate.htm and https://www.courts.ca.gov/selfhelp-conservatorship.htm. For statutes and code language see the Probate Code on the official legislative site: https://leginfo.legislature.ca.gov/faces/codes.xhtml?lawCode=PROB.

Helpful Hints

Start by confirming ownership: trust, individual, estate, or conservatorship. That determines the path.
Talk to the probate or conservatorship clerk in the county where the estate or conservatorship is filed to get local rules and fee details.
Get a current mortgage payoff demand early; payoffs change daily with interest.
Provide clear notice to heirs, beneficiaries, and creditors to reduce chances of objections that delay the sale.
Consider getting an appraisal or broker price opinion to support the sale price and to satisfy the court that you sought reasonable value.
If the sale will not cover the mortgage, contact the lender about a short payoff or short sale as soon as possible.
Keep detailed records of all steps, receipts, and communications; the court will want an accounting at some stage.
If you expect objections, prepare a clear factual record and consider seeking an informal pre-filing conference with the court or a short informational meeting with other interested parties.

Next practical step: Identify the property’s title status (trust vs. probate vs. conservatorship) and contact the local probate clerk for the list of required forms and timelines. If the situation involves conflicting parties, complicated liens, or an underwater mortgage, consider talking with a California attorney who handles probate or conservatorship sales.

Disclaimer: This article explains general California procedures and is for informational purposes only. It does not constitute legal advice. For advice about your specific facts, consult a licensed California attorney.