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    • painted
    • By painted 1st Dec 17, 12:16 PM
    • 175Posts
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    painted
    Sister buying me out
    • #1
    • 1st Dec 17, 12:16 PM
    Sister buying me out 1st Dec 17 at 12:16 PM
    My mother died recently and left the house to my sister and myself. She wants to buy my share of the property. We have had it valued, settled on a price and everything seems to be going ok.
    The solicitors who sorted out some problems with the will, and land registry and who are also doing the conveyancing, are now saying they cannot act for me too.

    They can act for both of us as beneficiaries, but not for the transfer of the house into my sisters sole name. I can go down the road of not employing a solicitor for my bit, but what would I need to be aware of please? Are there any pitfalls?
Page 1
    • RedFraggle
    • By RedFraggle 2nd Dec 17, 7:45 AM
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    RedFraggle
    • #2
    • 2nd Dec 17, 7:45 AM
    • #2
    • 2nd Dec 17, 7:45 AM
    Don't do it. Get a different solicitor
    Officially in a clique of idiots
    • getmore4less
    • By getmore4less 2nd Dec 17, 7:57 AM
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    getmore4less
    • #3
    • 2nd Dec 17, 7:57 AM
    • #3
    • 2nd Dec 17, 7:57 AM
    If she had bought it off the estate there should have been no problem and should have been cheaper.

    As long as you get your cash and she gets title there is no problem, she has the bigger issues if she needs a mortgage.
    • painted
    • By painted 2nd Dec 17, 11:24 AM
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    painted
    • #4
    • 2nd Dec 17, 11:24 AM
    • #4
    • 2nd Dec 17, 11:24 AM
    Red Fraggle - Its ok saying 'dont do it' but it would be more useful to explain why. Which was my initial question!
    Getmore4less - not sure what you mean by 'if she bought it off the estate'? The house is mortgage free, my sister doesn't need a mortgage to buy me out, she has the cash ready and waiting. It is literally, she gives me the money, my name is taken off the deeds, I presume?
    • G_M
    • By G_M 2nd Dec 17, 11:28 AM
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    G_M
    • #5
    • 2nd Dec 17, 11:28 AM
    • #5
    • 2nd Dec 17, 11:28 AM
    Who is/are the Executor(s)? The solicitors?

    It is up to the Executors to deal with the Estate, including transferring the property into the relevant name. Easy to do without a solicitor if you and/or sister are Executors.

    Is there a mortgage on the property? this will need paying off first - but again, that is a standard part of the Executor's duty.

    edit: for the benefit of others reading this who are preparing their wills, do not appoint solicitors as Executors unless you have no other option. A friend/famiily who is appointed can always instruct a solicitor to assist them if they wish later, but solicitors managing an Estate is very expensive, and (as here?) can create unecessary issues.
    Last edited by G_M; 02-12-2017 at 11:32 AM.
    • painted
    • By painted 2nd Dec 17, 11:33 AM
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    painted
    • #6
    • 2nd Dec 17, 11:33 AM
    • #6
    • 2nd Dec 17, 11:33 AM
    See reply above, also we are both trustees and the solicitors are dealing with the estate and putting our joint names on the deeds.

    The only thing I am asking is - are there any unforseen problems with transfering the house into my sisters sole name and me getting the money for the 'sale'?
    • G_M
    • By G_M 2nd Dec 17, 11:55 AM
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    G_M
    • #7
    • 2nd Dec 17, 11:55 AM
    • #7
    • 2nd Dec 17, 11:55 AM
    See reply above, also we are both trustees and the solicitors are dealing with the estate and putting our joint names on the deeds.

    The only thing I am asking is - are there any unforseen problems with transfering the house into my sisters sole name and me getting the money for the 'sale'?
    Originally posted by painted
    You have not clarified who the Executor is?

    And I don't understand why "the solicitors are dealing with the estate and putting our joint names on the deeds." The property should be transferred, by The Executors, from your mother's name into your sister's name. Your sister passes you the agreed sum of money.Simple.

    Unless the solicitors are the Executors, sack them.
    • painted
    • By painted 2nd Dec 17, 11:56 AM
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    painted
    • #8
    • 2nd Dec 17, 11:56 AM
    • #8
    • 2nd Dec 17, 11:56 AM
    Yes the solicitors are the executers
    • Silvertabby
    • By Silvertabby 2nd Dec 17, 12:13 PM
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    Silvertabby
    • #9
    • 2nd Dec 17, 12:13 PM
    • #9
    • 2nd Dec 17, 12:13 PM
    It clearly isn't the case here, but there could be a similar case whereby someone defrauds a vulnerable sibling by forcing them to agree to a very low price.

    Your solicitor may be just covering his/her six by insisting that you have your own solicitor for the transfer.
    • Mojisola
    • By Mojisola 2nd Dec 17, 12:27 PM
    • 28,647 Posts
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    Mojisola
    It clearly isn't the case here, but there could be a similar case whereby someone defrauds a vulnerable sibling by forcing them to agree to a very low price.

    Your solicitor may be just covering his/her six by insisting that you have your own solicitor for the transfer.
    Originally posted by Silvertabby
    If a RICS surveyor is employed by the solicitors/executors to give a valuation, that avoids any such issue.
    • painted
    • By painted 2nd Dec 17, 12:29 PM
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    painted
    Im quite happy with the house valuation, I had three done. As it is my sister will have to put a lot of money into the house as it needs a lot of work doing on it. I didnt want to keep the house so I would never have thought of buying her out.
    • 00ec25
    • By 00ec25 2nd Dec 17, 12:47 PM
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    00ec25
    Im quite happy with the house valuation, I had three done. As it is my sister will have to put a lot of money into the house as it needs a lot of work doing on it. I didnt want to keep the house so I would never have thought of buying her out.
    Originally posted by painted
    then it sounds like the executors are making a right meal of this will because, as GM posted above, they should not be transferring the property into your name, they should do it direct to sister and sister gives you money instead.

    even if the will expressly states that the named property is to be left to named people, the will can be varied to say brother gets a half share, not the property itself
    • painted
    • By painted 2nd Dec 17, 1:10 PM
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    painted
    Its not quite that straight forward. Sister and I should have inherited my fathers 50% of the property when he died (my parents did not own the whole property jointly) Our names werent put on the deeds as an oversight. We now inherit Mothers 50%. Also original will has been lost but we have a draft copy. We are not being charged full price as the solicitors are taking responsibility for the loss. But all that is being sorted. There is a process we need to go through.
    But all that really does not have anything to do with the original question.
    • pinklady21
    • By pinklady21 2nd Dec 17, 1:54 PM
    • 297 Posts
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    pinklady21
    Why not contact another solicitor and ask them to advise you on your situation? The initial chat should be free. They can therefore advise you properly of any potential risks for you of not taking independent advice.
    Best of luck.
    • 00ec25
    • By 00ec25 2nd Dec 17, 2:07 PM
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    00ec25
    Its not quite that straight forward. Sister and I should have inherited my fathers 50% of the property when he died (my parents did not own the whole property jointly) Our names werent put on the deeds as an oversight. We now inherit Mothers 50%. Also original will has been lost but we have a draft copy. We are not being charged full price as the solicitors are taking responsibility for the loss. But all that is being sorted. There is a process we need to go through.
    But all that really does not have anything to do with the original question.
    Originally posted by painted
    OK, your original question asks for "pitfalls" so your additional info does open up a few extra issues ...

    - you inherited 25% of the property when father died "sometime ago"
    - you are now inheriting the other 25% from mother.
    - your sister has the same pattern of 25 & 25

    Have you personally lived in the property as your only/main home since father died and you became a legal co-owner with your mother?
    If not, then your "disposal" of your 50% share to your sister is subject to capital gains tax since at least half of your 50% share relates to a property which is not exempt from CGT as you have been its owner since father's death sometime ago

    You and sister have agreed a valuation. It appears that valuation is based on having had 3 independent valuations undertaken and therefore it can be used as the market value which is the figure required for CGT purposes when there is a disposal between siblings.
    • painted
    • By painted 2nd Dec 17, 3:04 PM
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    painted
    Thank you 00ec25, will look into that.
    • G_M
    • By G_M 2nd Dec 17, 3:09 PM
    • 42,316 Posts
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    G_M
    I'm off to fix the dripping tap in my kitchen.
    • 00ec25
    • By 00ec25 2nd Dec 17, 3:43 PM
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    00ec25
    I'm off to fix the dripping tap in my kitchen.
    Originally posted by G_M
    but without drips the mould will not grow, and without mould we will not get a harvest of fungi to digest
    • getmore4less
    • By getmore4less 2nd Dec 17, 3:58 PM
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    getmore4less
    Solicitors are over complicating probably to increase their fees.

    Let the solicitors do the transfer into joint names.

    Then sack them from the rest of the house process you don't need then.

    do the transfer to one name yourselves simple transaction if no mortgage.
    • getmore4less
    • By getmore4less 2nd Dec 17, 4:02 PM
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    getmore4less
    Did the origins transfer on fathers death involve a life interest?

    Critical information as it changes the tax position.
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