Inheriting a property through probate is complex on its own. Add tenants into the mix, and things get even trickier. Whether it’s a family member, a long-term renter, or someone who moved in without a lease, you can’t just change the locks and move on.
If you're an executor, heir, or fiduciary dealing with a tenant-occupied probate property, here's what you need to know to handle it legally and strategically.
Step 1: Identify the Type of Tenancy
Before you take any action, clarify who’s living in the property and why. Common scenarios include:
-
A formal tenant with a signed lease
-
A month-to-month tenant
-
A family member or friend living rent-free
-
A holdover occupant with no legal agreement
This determines your next legal steps. California law strongly protects tenants, even in probate cases.
Step 2: Understand Tenant Rights Under California Law
In California, tenants have rights even if:
-
The owner has passed away
-
The property is now part of an estate
-
The tenancy was informal or undocumented
Key points to know:
-
You cannot evict a tenant without due process
-
A probate sale does not automatically terminate a lease
-
Tenants are entitled to proper notice, and in many cases, relocation assistance
If the occupant is a family member living rent-free, you may still need to go through formal eviction or unlawful detainer proceedings if they refuse to vacate.
Step 3: Review Lease Terms and Rent Status
If there’s a lease in place, review:
-
The end date
-
Rent amount and payment history
-
Any clauses about sale or transfer of ownership
If it’s month-to-month, you may be able to terminate the lease with a 30- or 60-day notice, depending on how long they’ve lived there and local rent control laws.
Keep records of all communication. You may need this if disputes arise.
Step 4: Decide Whether to Sell With or Without the Tenant
As the estate’s representative, you have two main options:
-
Sell the property with tenants in place
-
Vacate the property before selling
Selling with tenants can:
-
Attract investors looking for rental income
-
Limit your buyer pool if the home is in poor condition or needs showings
-
Require disclosure of lease terms and tenant rights
Selling vacant typically:
-
Appeals more to traditional buyers
-
Increases the sale price in many markets
-
May require legal action to remove tenants, which takes time and money
Step 5: Work With Professionals Who Know the Law
Tenant issues in probate aren’t just frustrating, they can delay the sale or even trigger lawsuits if mishandled.
Work with:
-
A probate attorney familiar with landlord-tenant law
-
A real estate agent experienced in tenant-occupied probate sales
-
Property management or relocation consultants if buyouts or notices are needed
The right team will help you comply with legal timelines, protect the estate from liability, and keep the transaction on track.
Final Thought: Patience and Precision Matter
Dealing with tenants during probate is rarely simple. But with a clear understanding of the law, strong communication, and the right support, you can navigate it without drama—and still get the property sold.
