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Trust Administration Issues

Whether you are a trustee or a beneficiary of a California trust it’s important to be familiar with the relevant rules laid out in the California Probate Code. In particular section 10160 et seq has a ton of important things to consider including access to documents, accountings, etc….  Check them out here and let me know of any questions.   -John

CALIFORNIA CODES
PROBATE CODE
SECTION 10160-10168
10160.  The estate is not liable to an agent, broker, or auctioneer
under a contract for the sale of property or for any fee, commission,
or other compensation or expenses in connection with a sale of
property unless the following requirements are satisfied:
(a) An actual sale is made.
(b) If court confirmation or approval is required, the sale is
confirmed or approved by the court as required.
(c) The sale is consummated.

10160.5.  The estate is not liable to an agent or broker under a
contract for the sale of property or for any fee, commission, or
other compensation or expenses in connection with sale of the
property in either of the following cases:
(a) Where the agent or broker, directly or indirectly, is the
purchaser of the property.
(b) Where the agent or broker representing the purchaser to whom
the sale is confirmed has any interest in the purchaser.

10161.  (a) Subject to the provisions of this article, whether or
not the agent or broker has a contract with the personal
representative, the fee, commission, or other compensation of an
agent or broker in connection with a sale of property shall be the
amount the court, in its discretion, determines to be a reasonable
compensation for the services of the agent or broker to the estate.
(b) Unless the agent or broker holds a contract granting an
exclusive right to sell the property, an agent or broker is not
entitled to any fee, commission, or other compensation for services
to the estate in connection with a sale except in the following
cases:
(1) Where the agent or broker produces the original bid which is
returned to the court for confirmation.
(2) Where the property is sold on an increased bid, made at the
time of the hearing on the petition for confirmation, to a purchaser
procured by the agent or broker.
(c) If the agent or broker has a contract with the personal
representative, the amount of the compensation of the agent or broker
in connection with the sale of property shall not exceed the amount
provided for in the contract.

 

10162.  (a) Subject to subdivision (b), where the bid returned to
the court for confirmation is made by a person who is not represented
by an agent or broker and the successful bidder is represented by an
agent or broker, the compensation of the agent or broker who
procured the purchaser to whom the sale is confirmed shall not exceed
one-half of the difference between the amount of the bid in the
original return and the amount of the successful bid.
(b) This section does not limit the compensation of the agent or
broker who holds a contract under Section 10150 granting him or her
the exclusive right to sell the property.

10162.3.  (a) This section applies if all of the following
circumstances exist:
(1) There is no agent or broker holding a contract under Section
10150 granting the exclusive right to sell the property.
(2) The bid returned to court for confirmation is made by a
purchaser represented by an agent or broker.
(3) The court confirms the sale to that purchaser either on the
bid returned to court for confirmation or on an increased bid made at
the time of the hearing on the petition for confirmation.
(b) If all the circumstances described in subdivision (a) exist,
the court shall allow the agent or broker who procured the purchaser
to whom the sale is confirmed the compensation determined under
Section 10161 on the full amount for which the sale is confirmed.

10162.5.  Subject to Section 10162.6, where an agent or broker holds
a contract under Section 10150 granting the exclusive right to sell
the property, the court shall allow to the agent or broker holding
the contract the compensation determined under Section 10161 on:
(a) The full amount for which the sale is confirmed in either of
the following circumstances:
(1) The bid returned to the court for confirmation is made by a
purchaser who is not represented by an agent or broker and the court
confirms the sale to that purchaser on that bid.
(2) The bid returned to the court for confirmation is made by a
purchaser who is represented by the agent or broker holding the
contract and the court confirms the sale to that purchaser on an
increased bid made at the time of the hearing on the petition for
confirmation.
(b) The amount of the original bid if both of the following
circumstances exist:
(1) The bid returned to court for confirmation is made by a
purchaser who is not represented by an agent or broker or who is
represented by the agent or broker holding a contract under Section
10150 granting the exclusive right to sell the property.
(2) The court confirms the sale on an increased bid, made at the
time of the hearing on the petition for confirmation, to a purchaser
who was not procured by a bona fide agent or broker.

10162.6.  (a) This section applies if both of the following
circumstances exist:
(1) An agent or broker holds a contract under Section 10150
granting the exclusive right to sell the property.
(2) The contract provides that no compensation is payable to the
agent or broker holding the contract if sale is confirmed to a
particular purchaser named in the contract.
(b) If the court confirms the sale to the purchaser named in the
contract, whether on an original bid returned to the court or on an
increased bid made at the time of the hearing on the petition for
confirmation, the compensation of any agents or brokers involved in
the sale is determined as provided in this article, except that no
compensation is payable to the agent or broker holding the contract.
(c) If the court confirms the sale to a purchaser other than the
person named in the contract, whether on an original bid returned to
the court or on an increased bid made at the time of the hearing on
the petition for confirmation, the compensation of the agent or
broker holding the contract, and of any other agents or brokers
involved in the sale, is determined under this article as if the
limitation in the contract did not exist.

10162.7.  (a) Subject to Section 10162.6, this section applies if
all of the following circumstances exist:
(1) There is an agent or broker holding a contract under Section
10150 granting the exclusive right to sell the property.
(2) The bid returned to court for confirmation is made by a
purchaser procured by another agent or broker.
(3) The court confirms the sale to that purchaser either on the
bid returned to court for confirmation or on an increased bid made at
the time of the hearing on the petition for confirmation.
(b) If all the circumstances described in subdivision (a) exist,
the court shall allow the compensation determined under Section 10161
on the full amount for which the sale is confirmed. The compensation
allowed by the court shall be divided between the agent or broker
holding the contract and the other agent or broker as is provided in
any agreement between the agent or broker holding the contract and
the other agent or broker. If there is no agreement, the compensation
on the amount of the original bid returned to the court shall be
divided equally between the agent or broker holding the contract and
the other agent or broker and, if the sale is confirmed on an
increased bid, the other agent or broker shall be paid all of the
compensation on the difference between the original bid and the
amount for which the sale is confirmed.

10163.  Subject to Sections 10162 and 10162.6, where the original
bid returned to the court for confirmation was made by a purchaser
who was not procured by an agent or broker, the court shall allow the
compensation determined under Section 10161 on the full amount for
which the sale is confirmed to the agent or broker who procured the
purchaser to whom the sale is confirmed if either of the following
conditions is satisfied:
(a) The court confirms a sale on an increased bid, made at the
time of the hearing on the petition for confirmation, to a purchaser
procured by an agent or broker holding a contract under Section 10150
granting the exclusive right to sell the property.
(b) There is no agent or broker holding a contract under Section
10150 granting the exclusive right to sell the property and the court
confirms a sale on an increased bid, made at the time of the hearing
on the petition for confirmation, to a purchaser procured by a bona
fide agent or broker.

10164.  (a) This section applies only where the court confirms a
sale on an increased bid, made at the time of the hearing on the
petition for confirmation, to a purchaser who was not procured by a
bona fide agent or broker.
(b) Except as provided in subdivision (c), the court shall allow
the compensation determined under Section 10161 on the amount of the
original bid to the agent or broker whose original bid was returned
to the court.
(c) If an agent or broker holds a contract under Section 10150
granting the exclusive right to sell the property and the original
bid returned to the court is made by a purchaser who was procured by
another agent or broker, the compensation determined under Section
10161 on the amount of the original bid shall be divided between the
agent or broker holding the contract and the other agent or broker as
is provided in any agreement between the agent or broker holding the
contract and the other agent or broker. If there is no agreement,
the compensation shall be divided equally between the agent or broker
holding the contract and the other agent or broker.

10165.  (a)  Subject to Section 10162.6, where the court confirms a
sale on an increased bid, made at the time of the hearing on the
petition for confirmation, to a purchaser procured by a bona fide
agent or broker, the court shall allow the compensation determined
under Section 10161 on the full amount for which the sale is
confirmed, as provided in this section, if either of the following
conditions is satisfied:
(1) The original bid returned to the court for confirmation was
made by a purchaser who was procured by another agent or broker.
(2)  The original bid returned to the court for confirmation was
made by a purchaser who was not represented by an agent or broker,
and another agent or broker holds a contract under Section 10150
granting the exclusive right to sell the property.
(b) The agent or broker who procured the purchaser to whom the
sale is confirmed shall be paid one-half of the compensation on the
amount of the original bid and all of the compensation on the
difference between the original bid and the amount for which the sale
is confirmed.
(c) The other one-half of the compensation on the amount of the
original bid shall be paid as follows:
(1) If the original bid returned to the court is made by a
purchaser who was procured by the agent or broker holding a contract
under Section 10150 granting the exclusive right to sell the
property, the entire one-half of the compensation on the original bid
shall be paid to that agent or broker.
(2) If the original bid returned to the court is made by a
purchaser who was procured by a bona fide agent or broker and there
is no agent or broker holding a contract under Section 10150 granting
the exclusive right to sell the property, the entire one-half of the
compensation on the original bid shall be paid to that agent or
broker.
(3) If there is an agent or broker who holds a contract under
Section 10150 granting the exclusive right to sell the property and
the original bid returned to the court is made by a purchaser who was
procured by another agent or broker, the one-half of the
compensation on the amount of the original bid shall be divided
between the agent or broker holding the contract granting the
exclusive right to sell the property and the other agent or broker
whose original bid was returned to the court for confirmation as is
provided in any agreement between the agent or broker holding the
contract and the other agent or broker. If there is no agreement, the
one-half of the compensation on the amount of the original bid shall
be divided equally between the agent or broker holding the contract
and the other agent or broker whose original bid was returned to the
court for confirmation.
(4) If there is an agent or broker who holds a contract under
Section 10150 granting the exclusive right to sell the property and
the original bid returned to the court is made by a purchaser who is
not represented by an agent or broker and the court confirms the sale
on an increased bid, made at the time of the hearing on the petition
for confirmation, to a purchaser procured by another agent or
broker, the entire one-half of the compensation on the original bid
shall be paid to the agent or broker holding the contract.
(5) If the agent or broker compensated under subdivision (b) holds
a contract under Section 10150 granting the exclusive right to sell
the property, the entire one-half of the compensation on the original
bid shall be paid to the other agent or broker who procured the
original bid returned to the court.

10166.  Notwithstanding that a bid contains a condition that a
certain amount of the bid shall be paid to an agent or broker by the
personal representative, only such compensation as is proper under
this article shall be allowed. Acceptance of the bid by the court
binds the bidder even though the compensation allowed by the court is
less than that specified by the condition.

10167.  (a) Subject to subdivision (b), whether or not the
auctioneer has a contract with the personal representative, the fees,
compensation, and expenses of an auctioneer in connection with a
sale of property shall be the amount the court, in its discretion,
determines to be a reasonable compensation for the services of the
auctioneer to the estate.
(b) If the auctioneer has a contract with the personal
representative, the amount of the compensation of the auctioneer in
connection with the sale of property shall not exceed the amount
provided for in the contract.

10168.  This article does not supersede any agreement cooperating
agents or brokers may have among themselves to divide the
compensation payable under this article.