SECTIONS 9940-9948 - California Statutes

PROBATE CODE

SECTION 9940-9948

9940. For the purpose of this chapter:
(a) "Lease" includes, without limitation, a lease that includes an
option to purchase real propery of the estate.
(b) If a lease gives the lessee the right to extend the term of
the lease, the length of the term shall be considered as though the
right to extend had been exercised.

9941. If it is to the advantage of the estate, the personal
representative may lease, as lessor, real property of the estate
without authorization of the court in either of the following cases:
(a) Where the rental does not exceed five thousand dollars
($5,000) a month and the term does not exceed one year.
(b) Where the lease is from month to month, regardless of the
amount of the rental.

9942. (a) The personal representative may lease, as lessor, real
property of the estate after authorization by order of court obtained
under this chapter upon a showing that the proposed lease is to the
advantage of the estate.
(b) If the proposed lease includes an option to purchase real
property of the estate, a petition for an order authorizing the lease
shall be filed under this chapter but the applicable provisions for
court approval both in this chapter and in Chapter 16 (commencing
with Section 9960) apply to the execution of the lease.

9943. (a) To obtain an order under this chapter, the personal
representative or any interested person shall file a petition
containing all of the following:
(1) A general description of the real property proposed to be
leased.
(2) The term, rental, and general conditions of the proposed
lease.
(3) A showing that the proposed lease is to the advantage of the
estate.
(b) If the lease is proposed to be for a term longer than 10
years, the petition shall also state facts showing the need for the
longer lease and its advantage to the estate and its benefit to the
interested persons.

9944. (a) Notice of the hearing on the petition shall be given as
provided in Section 1220 and posted as provided in Section 1230.
(b) Notice of the hearing on the petition also shall be given as
provided in Section 10300, but this notice is not required if the
will authorizes or directs the personal representative to lease or
sell property.
(c) If the lease is proposed to be for a term longer than 10
years, in addition to the notice required by subdivision (a), notice
of the hearing shall be given as provided in Section 1220 to all of
the following persons:
(1) Each known heir whose interest in the estate would be affected
by the proposed lease.
(2) Each known devisee whose interest in the estate would be
affected by the proposed lease.

9945. (a) At the hearing, the court shall entertain and consider
any other offer made in good faith at the hearing to lease the same
property on more favorable terms.
(b) If the court is satisfied that it will be to the advantage of
the estate, and, if the lease is for more than 10 years, that it is
to the benefit of interested persons, the court shall make an order
authorizing the personal representative to make the lease to the
person on the terms and conditions stated in the order. The court
shall not make an order authorizing the personal representative to
make the lease to any person other than the lessee named in the
petition unless the offer made at the hearing is acceptable to the
personal representative.

9946. (a) Subject to Section 9947, an order authorizing the
execution of a lease shall set forth the minimum rental or royalty or
both and the period of the lease.
(b) The order may authorize other terms and conditions of the
lease, including, with respect to a lease for the purpose of
exploration for or production or removal of minerals, oil, gas, or
other hydrocarbon substances, or geothermal energy, any one or more
of the following provisions:
(1) A provision for the payment of rental and royalty to a
depositary.
(2) A provision for the appointment of a common agent to represent
the interests of all the lessors.
(3) A provision for the payment of a compensatory royalty in lieu
of rental and in lieu of drilling and producing operations on the
land covered by the lease.
(4) A provision empowering the lessee to enter into any agreement
authorized by Section 3301 of the Public Resources Code with respect
to the land covered by the lease.
(5) A provision for a community oil lease or a pooling or
unitization by the lessee.
(c) If the lease covers additional property owned by other persons
or an undivided or other interest of the decedent less than the
entire ownership in the property, the order may authorize the lease
to provide for division of rental and royalty in the proportion that
the land or interest of each owner bears to the total area of the
land or total interests covered by the lease.

9947. (a) Except as provided in this section, the term of the lease
shall be for such period as the court may authorize.
(b) Except as provided in subdivision (c), the court shall not
authorize a lease for longer than 10 years if any heir or devisee who
has an interest in the property to be leased objects at the hearing.
(c) If the lease is for the purpose of exploration for or
production or removal of minerals, oil, gas, or other hydrocarbon
substances, or geothermal energy, the court may authorize that the
lease be for a fixed period and any of the following:
(1) So long thereafter as minerals, oil, gas, or other hydrocarbon
substances or geothermal energy are produced in paying quantities
from the property leased or mining or drilling operations are
conducted thereon.
(2) If the lease provides for the payment of a compensatory
royalty, so long thereafter as such compensatory royalty is paid.
(3) If the land covered by the lease is included in an agreement
authorized by Section 3301 of the Public Resources Code, so long
thereafter as oil, gas, or other hydrocarbon substances are produced
in paying quantities from any of the lands included in any such
agreement or drilling operations are conducted thereon.

9948. (a) The personal representative shall execute, acknowledge,
and deliver the lease as directed, setting forth therein that it is
made by authority of the order, giving the date of the order.
(b) A lease made pursuant to an order obtained under this chapter
is effectual to lease the premises described in the order at the
rent, for the term, and upon the terms and conditions prescribed in
the order.
(c) Jurisdiction of the court in proceedings under this code
concerning the administration of the estate of the decedent vests the
court with jurisdiction to make the order for the lease. This
jurisdiction shall conclusively inure to the benefit of the lessee
and the lessee's heirs and assigns.
(d) No omission, error, or irregularity in the proceedings under
this chapter shall impair or invalidate the proceedings or the lease
made pursuant to an order made under this chapter.