If a person dies without a valid will but has legal heirs, what happens to their real property?

When a person dies intestate, meaning without a valid will, their real property is distributed according to the laws of descent and distribution established by the state. These laws determine how assets are allocated among the legal heirs, typically prioritizing spouses, children, and other relatives in a specified order.

In this scenario, because there are legal heirs, the property will not be taken by the state nor will it be sold at public auction. Instead, the probate process will occur, during which the court verifies the heirs and oversees the distribution of the decedent’s assets according to the predetermined legal framework. This ensures that the property is passed down fairly and legally to those who are entitled to it based on their relationship to the deceased.

Thus, choice C accurately reflects the legal process for distributing the deceased person's real property when there is no valid will in place.