Seller death before aettlement

Seller death before settlement

We have enerted into a contract for buying a devy site in Brisbane. Seller is 93 years old lady and is frequently in and out of hospital. Our settlment is 90 days away.

What will happen to contract and settlement if seller dies before settlement ? What if her will says that she wants to give house to a relative and that relative does not want to sell ? What if her estate has debt and someone lays claim to property ?
 
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You should have had a special condition in the contract.

If she dies contracts she has entered into a still valid with her estate being bound to the terms. Sometimes contracts of sale have clauses allowing either party to terminate on the death of one of the parties. So you may no longer have a contract. If there is no clause then you will come to settlement time and be unable to settle. There will be no one who has the legal authority to sign transfers on behalf of a deceased until a court appoints either an executor or an administrator of the estate. This generally takes 6 to 12 months .
 
You should have had a special condition in the contract.

If she dies contracts she has entered into a still valid with her estate being bound to the terms. Sometimes contracts of sale have clauses allowing either party to terminate on the death of one of the parties. So you may no longer have a contract. If there is no clause then you will come to settlement time and be unable to settle. There will be no one who has the legal authority to sign transfers on behalf of a deceased until a court appoints either an executor or an administrator of the estate. This generally takes 6 to 12 months .

Thanks, Terry.
 
ha, gave me a chuckle. "Now I have just inserted this little clause here for, you know, if you drop your head into a pizza one day without warning. Always best to discuss these things, you're no spring chicken you know!!"
 
No reason for chuckle

ha, gave me a chuckle. "Now I have just inserted this little clause here for, you know, if you drop your head into a pizza one day without warning. Always best to discuss these things, you're no spring chicken you know!!"

Hi Ausprop,

We will be spending appx 30k or so betwwen now and settlement for getting DA on the site. If for some reason, settlement does not go ahead then we will be loosing whatever we spent. So i see no reason for chuckle here.

Normally i will not consider this scenario but seller is 93 year old and is in and out of hospital frequently.

Rooky.
 
This is no laughing matter:)

Even young people can die and this must be considered before every contract that you enter. It would even be troublesome to get your 10% deposit back if it doesn't settle because of death.
 
it's just wrong, but regardless of that, it's too late because....

We have enerted into a contract for buying a devy site in Brisbane.

however the answer to this....

What will happen to contract and settlement if seller dies before settlement ? ?

lies in the contract. IF the contract sticks, then it was her will that she sell you the property, so..

What if her will says that she wants to give house to a relative and that relative does not want to sell ?

relative can go whistle. Another whistler will be this bloke:

What if her estate has debt and someone lays claim to property ?

...who is free to lay claim on the estate for whatever assets and net proceeds of sale may be available.


You should caveat the land with your contract though.
 
This is no laughing matter:)

Even young people can die and this must be considered before every contract that you enter. It would even be troublesome to get your 10% deposit back if it doesn't settle because of death.

fair enough but don't target it at someone, look for the catch all provision and make sure it covers both buyer and seller
 
Most parties to a property transaction never meet each other. You would just add standard clauses to every contract you enter, whether as buyer or seller.
 
I know relatives who inherited grandmas house and sold it 2 weeks after her death when it hadn't even gone through probate. The new buyers are now living in the house and paying rent until probate happens. Could the vendors pull out of this contract?
 
I know relatives who inherited grandmas house and sold it 2 weeks after her death when it hadn't even gone through probate. The new buyers are now living in the house and paying rent until probate happens. Could the vendors pull out of this contract?

Yes. Whoever sold the house has no legal right to do so. The contract is probably conditional on them obtaining probate, but there is a chance it won't happen will could be invalid or there could be others who are appointed executors.
 
New clause added

Hi All,

An update from my side...

Luckily vendor had not signed contract. It was just verbal approval from her son. So we have now got following clause inserted into contract which was worked out by solicitors at both end. I think this clause adequately protects us in the event of vendor's death and settlement should go ahead without any issue.

"In the event of death of vendor - on or before the contract settlement for above mentioned property, the seller's real estate agent and seller's family shall honour this contract and shall fully assist with its terms and conditions as it stands. This contract must be awarded despite of any conditions noted in the Seller's will."

Rooky.
 
Hi All,

An update from my side...

Luckily vendor had not signed contract. It was just verbal approval from her son. So we have now got following clause inserted into contract which was worked out by solicitors at both end. I think this clause adequately protects us in the event of vendor's death and settlement should go ahead without any issue.

"In the event of death of vendor - on or before the contract settlement for above mentioned property, the seller's real estate agent and seller's family shall honour this contract and shall fully assist with its terms and conditions as it stands. This contract must be awarded despite of any conditions noted in the Seller's will."

Rooky.

Id also suggest to put the following clause in 'I the seller will not die before settlemetn' :D
 
I know relatives who inherited grandmas house and sold it 2 weeks after her death when it hadn't even gone through probate. The new buyers are now living in the house and paying rent until probate happens. Could the vendors pull out of this contract?

wow, her bed would still be warm
 
Currently have unconditional contract with 90 year old vendor. Was reluctant to extend settlement due to us being overseas because WE might die.
 
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