Can I stop family members from purchasing a deceased estate - is there a conflict

[RIC84]

pretty much summed up-

estate with 5 beneficiaries
3 executors
1 of the executors sons wants to buy the old family home, knock it down (once in his name obviously) and build multiple homes.

Some of the family members are upset about the idea of this and others are not phased in the slightest.

from a purely legal stand point is there anything wrong if a executor refused to sign a sales agreement to people in the family - I see it as a conflict of interest as the seller is related to the executor and could potentially influence the sale & sale process for his child's benefit - ideally I would like to know if as a executor could one or both of the other two say we will not be selling to immediate & extended family (including spouses).

Thoughts???

 

[D.T.]

Some of the family members are upset about the idea of this and others are not phased in the slightest.

Why is it any of their business what the purchaser does with the property?

 

[Terry_w]

Executors have duties to the beneficiaries of the estate. There is nothign to stop a beneficiary from purchasing an estate asset as long as it is at market value. If the executor gives any discount or special considerationt his could be a breach of their duties.

If an executor refuses to sell to a beneficiary and later the property cannot be sold or sells at a lower amount the executor could be sued.

The executor should seek legal advice.

 

[DaveM]

Given they would have to sign the contract of sale, then they certainly can decide who they will or will not sell to

 

[Scott No Mates]

The important thing is to ensure that the executors undertake their role diligently in accordance with the wishes of the deceased.

If someone wants to purchase, then follow the directions of the will - what does it say about disposal of the properties? Are they to be sold and the money distributed or property gifted to one or the other? Is the person willing to pay market value or are they looking for it on the cheap? How have they established their price?

What is upsetting those who don't want to sell? Is it because they want more $$ or don't want to demolish the house? If someone else buys they'll have no control over what happens anyway.

 

[wylie]

Would it be sold to the family member at market rate? Perhaps to stop accusations of favouritism it should be auctioned and the family member has to bid with any other developers.

 

[marg4000]

As Wylie said.

Auction the property to avoid any perceived conflict of interests and what the buyer does is not the concern of the estate.
Marg

 

[battler]

estate with 5 beneficiaries
3 executors
1 of the executors sons wants to buy the old family home

Is the son an executor or beneficiary?

 

[skater]

Would it be sold to the family member at market rate? Perhaps to stop accusations of favouritism it should be auctioned and the family member has to bid with any other developers.

This is what we did when my MIL passed away. The home was auctioned off. We asked the rest of the family if they had an issue with us bidding & they said that if we were the highest bidders it only benefited everyone else, because we would have obviously paid more for it than anyone else.

We didn't end up getting it, but we did push the price up quite a bit higher than what the purchaser would have paid without us there.

 

[willair]

pretty much summed up-

estate with 5 beneficiaries
3 executors
1 of the executors sons wants to buy the old family home, knock it down (once in his name obviously) and build multiple homes.

Some of the family members are upset about the idea of this and others are not phased in the slightest.

from a purely legal stand point is there anything wrong if a executor refused to sign a sales agreement to people in the family - I see it as a conflict of interest as the seller is related to the executor and could potentially influence the sale & sale process for his child's benefit - ideally I would like to know if as a executor could one or both of the other two say we will not be selling to immediate & extended family (including spouses).

Thoughts???

I have been through this before,and I was the executor of my Fathers Estate,4 people all with a equal share,i had no problems with 4 in my family the problems started with who they were married too,i had the property valued 2 times,still had problems so we just put it up auction
never sold on the day,sold about 6 weeks later,my opinion put it for auction and what happens -happens..

 

[dabbler]

Property should be auctioned, that way it is open to whomever.

It is of no ones concern (personally) what the new owner does with the property.