House Purchase by Executor or Beneficiary

S

SusieS

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I hope someone can offer advice.

I'm a beneficiary in a will with a house is to be shared between 7 other family members.

I got an email from the solicitor telling me that probate is granted and telling me that one of the executors (my uncle, who is not a beneficiary) has asked to buy the house and wants to know if I would agree to this.

Ive just be told by another beneficiary (a cousin) that he's also put in a bid to buy the house for themselves. The solicitor has not shared this other offer with the rest of the beneficaries yet even though the offer was made a few weeks ago!

From what I read from Google, it's not usual for executors to buy assets off the estate.

Can the executor continue to try and buy the house or would it to much of a conflict of interest?

Susie S
 
Put the house on the market with a local agent.

Anyone who wants to buy it can put in offers in the usual way.
 
If the house is to be shared jointly by 7 (or is it 8?) people, then if the 7 or 8 agree to sell the house, that is what is done. They will all have to agree on the price and the buyer

There is no problem with the executor buying the house - but obviously in the interest of openness and fairness the valuation needs to be verified. Whether it is necessary to go to market or auction, only the 7 or 8 can decide
 
I agree with the above. THe executor can buy the house once they get the best price for the beneficiaries
 
If the executor sells the house to someone for a price that is lower than the market price, he/she could leave herself open to legal action.

The executor duty includes administering and looking after the assets of the deceased - if he/she allows the asset to be disposed of cheaply, then the beneficiaries could bring a legal action saying that he/she did not do their duty
 
Premos said:
When and how was the valuation done?
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Tahnks for the reply.

The offer from executor is an average of two valuations from independent real estate companies.

Am told the benificiary has made a higher offer but this has not been confirmed yet.
 
SusieS said:
Tahnks for the reply.

The offer from executor is an average of two valuations from independent real estate companies.

Am told the benificiary has made a higher offer but this has not been confirmed yet.
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Did a solicitor get the valuation done or the executor ?? Who appointed the real estate company ??
 
Thanks for the replies everyone.#

I think as a new member there is a time limit on my posts.

I am not ignoring you helpfull peopole.

I should have said that the executor lives on same site or next door to house he is looking to buy and does not want it to go on general sale.

If the beneficiary offer is higher how will the executors decide who to sell to?
 
I would have thought the Executor duty is to get the highest price, unless something else is agreed between the beneficiaries.
 
SusieS said:
I hope someone can offer advice.

I'm a beneficiary in a will with a house is to be shared between 7 other family members.

I got an email from the solicitor telling me that probate is granted and telling me that one of the executors (my uncle, who is not a beneficiary) has asked to buy the house and wants to know if I would agree to this.

Ive just be told by another beneficiary (a cousin) that he's also put in a bid to buy the house for themselves. The solicitor has not shared this other offer with the rest of the beneficaries yet even though the offer was made a few weeks ago!

From what I read from Google, it's not usual for executors to buy assets off the estate.

Can the executor continue to try and buy the house or would it to much of a conflict of interest?

Susie S
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Starting with the question at the end of your e-mail, the executor should act in the best interests of the estate (beneficiaries), which would mean getting the highest possible price for the house, however as a buyer the executor will be looking for the lowest possible price. This is a conflict of interest. It's not insurmountable, nor is it wrong, but it is a conflict of interest and as such needs at the very least to have safeguards put in place.

Regarding the email from the solicitor, did the other 7 beneficiaries receive the same e-mail ?

Has the beneficiary who's put in a bid for the house said who he submitted the bid to, whether or not it was acknowledged, and whether or not he has queried with the solicitor why their interest in the property was not advised in the e-mail ?

It's difficult to form a view on this to be honest as we are only getting part of the story, but there are some alarm bells here. On the other hand, it may all work out well.
 
All beneficiaries should be told about all offers. You seem to be saying that the executor is a professional who is appointed and paid to act, namely a solicitor. He’s has a clear conflict of interest then as his desire to buy the property is not aligned with the executor obligation to get the best price for the property. Proceed very carefully. The other beneficiaries may be very annoyed to learn about the other offer after the fact, and the fact that you knew about it.
 
I think it is very straightforward. Your uncle seems to be doing everything above board, getting valuations, offering a fair price, saving the estate fees. In an ideal world you would reply to the email that you agree. But with a bid from your cousin it changes things. The estate may get a higher value if they took your cousins offer.

So I would reply to the solicitor with a no as you understand your cousin has made a higher offer and they both should be allowed to bid for the property or it should be sold on the open market to return the highest value for all the beneficiaries.

Who knows, perhaps your cousin placed the bid but was not able to prove they had the cash to buy etc., The solicitor may clarify the situation in a further email which you may be happy to agree to.

Best of luck.
 
Clamball said:
I think it is very straightforward. Your uncle seems to be doing everything above board, getting valuations, offering a fair price, saving the estate fees. In an ideal world you would reply to the email that you agree. But with a bid from your cousin it changes things. The estate may get a higher value if they took your cousins offer.

So I would reply to the solicitor with a no as you understand your cousin has made a higher offer and they both should be allowed to bid for the property or it should be sold on the open market to return the highest value for all the beneficiaries.

Who knows, perhaps your cousin placed the bid but was not able to prove they had the cash to buy etc., The solicitor may clarify the situation in a further email which you may be happy to agree to.

Best of luck.
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Thanks for your very clear reply
 
Freelance said:
Starting with the question at the end of your e-mail, the executor should act in the best interests of the estate (beneficiaries), which would mean getting the highest possible price for the house, however as a buyer the executor will be looking for the lowest possible price. This is a conflict of interest. It's not insurmountable, nor is it wrong, but it is a conflict of interest and as such needs at the very least to have safeguards put in place.

Regarding the email from the solicitor, did the other 7 beneficiaries receive the same e-mail ?

Has the beneficiary who's put in a bid for the house said who he submitted the bid to, whether or not it was acknowledged, and whether or not he has queried with the solicitor why their interest in the property was not advised in the e-mail ?

It's difficult to form a view on this to be honest as we are only getting part of the story, but there are some alarm bells here. On the other hand, it may all work out well.
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Thanks for you reply.

Everyone got email with uncle offer from solicitor.

No other received from solicitor about another offer

Cousin said solicitor had replied to say they received offer and now waiting for more instructions from executors.
 
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