Beneficiary buying property

[Thirsty]

Haven't done this one before; wondering what the usual practice might be.

Property valued at (say) €300k. Three beneficiaries equal shares, say 100k each.
There's sufficent cash in deceased bank a/c which would cover probate & other costs with some left over.

Beneficiary A wishes to purchase property. B & C agree & price confirmed at 300k.

Does A pay 200k as purchase price, allowing for their share. Which makes sense to me.

Or do they pay 300k & wait for the 100k to come back to them, which seems convoluted.

Wondering what is the standard practice?

 

[mathepac]

Does A pay 200k as purchase price, allowing for their share. Which makes sense to me.

I've done this in the past as executor

 

[Pinoy adventure]

I would guess A pays both b & c €100k each for there share of the property,rather than A paying €200k too the estate for the property and b & c receive 50% each of value of the estate.

 

[Thirsty]

The property purchase and conveyancing has to be done via Solicitor.

Beneficiary A can't just write a cheque.

 

[Pinoy adventure]

The property purchase and conveyancing has to be done via Solicitor.

Beneficiary A can't just write a cheque.

If Beneficiary A has the cash s/he could just write a cheque assuming s/he knows the property inside out and is happy enough too buy it outright.

If Beneficiary A is obtaining a mortgage too buy the property they would need the conveyance done.

 

[ClubMan]

The title has to be transferred into the sole owner's name so legal conveyancing is still required as @Thirsty already pointed out. Suggesting anything else is simply erroneous advice.

 

[ClubMan]

Wouldn't this be two separate events?

1. Probate transfers the property into the names of the three beneficiaries and gives the beneficiaries ownership of the inherited asset(s?).
2. The three now own the property jointly, so if one wants to buy the other two out then that individual pays each of the other two €100k and conveyancing transfers the property into their sole name.

 

[Thirsty]

Property sale is done in a single step.

 

[Brendan Burgess]

I would guess A pays both b & c €100k each

Wouldn't this be two separate events?

With respect, there is no point in guessing. The solicitor advising the Executor who has probably practised law for 20 or 30 years should know the answer.

If the answer from the solicitor seems wrong, by all means come back here and ask for a second opinion.

Brendan

 

[NoRegretsCoyote]

Or do they pay 300k & wait for the 100k to come back to them, which seems convoluted.

I know very little about this stuff.

But the substance is that party 1 is paying parties 2 and 3 €100k each for the property.

I can't see how party 1 should have to raise another €100k as basically a loan to themselves.

 

[Thirsty]

Have you dealt with a similar case as executor @Brendan Burgess ?

 

[Brendan Burgess]

Have you dealt with a similar case as executor @Brendan Burgess ?

No. Not sure the relevance of that question?

 

[Billo]

A transfers 200k to the solicitor who then gives 100k each to B and C.

 

[mathepac]

Cheque is payable to the "Reps of John Doe", not the beneficiaries, and is lodged to the client / executor account by the solicitor. I've sold cars this way too, in simple, single-step transactions. It really is painless once all parties agree and no-one makes waves.