Death mid contract - is it still valid?

[Break'n Out]

Hi,

My mother lives in her partners house for > 10 years. The contract has been signed as is subject to inspection. The house that they were to buy is subject to the sale of this property.

Unfortunately the partner dies.. Are both of the contracts still valid?? What happens to the deposits if not?

Note both properties were in the deceased name? Is the estate able to continue with one or both contracts?

 

[Propertunity]

Unfortunately the partner dies.. Are both of the contracts still valid??

No, if you read the contract you'll see that death of a party and/or going insane are both valid reasons for the contracts to be terminated.

What happens to the deposits if not?

They get returned to the purchaser/s.

Note both properties were in the deceased name? Is the estate able to continue with one or both contracts?

No, not right now. Probate will have to be granted to see if any other parties like the ATO, creditors, dependents, other hangers on, can make a valid claim on the estate. After this, the property can go back on the market.

 

[Terryw]

I think any contract entered into would be still binding on the personal representative of the deceased - the executor or administrator. But this is subject to the terms of the contract. It is also problematic as an executor/administrator does not have authority to act until appointed by the courts. If there is a will then probate needs to be applied for and this would take at least a month if everything goes smoothly, but more like 3 -12 months.

 

[Jindaro]

Deceased estate

We bought a property a few years ago and the vendor passed away 2 weeks after the cooling off period. Through the REA we found out that the family that were to inherit the property still wanted to sell so we waited the 6 months out and eventually bought it.

It turns out that there was no will even though the vendor knew he was very ill. Talk about crazy...

 

[Break'n Out]

Thank you for your contribution to my queries.