Is estate agent's contract void?

jerrypf

Hello

A contract was signed with an estate agent to sell a family house through probate. At the time only one proving executor was named. Since, the other two executors have obtained full rights. Is the contract now null and void? This is especially important, as the contract is for sole selling rights, which wouldn't have previously been agreed by all parties.

Thank you in advance for your help.

davidmcn

I would say it's a valid contract between the EA and the estate. Not everything necessarily requires all executors to sign (or indeed a signature at all).

jerrypf

The other executors (with powers reserved) weren't given sight of the contract prior to signing. The implications of 'sole selling rights' weren't made clear to the estate.

davidmcn

jerrypf wrote: »

The other executors (with powers reserved) weren't given sight of the contract prior to signing. The implications of 'sole selling rights' weren't made clear to the estate.

I think that's something the executors need to sort out amongst themselves, rather than a concern of the other party.

jerrypf

As three executors are now responsible for the sale of the house, does the original contract still stand?

davidmcn

jerrypf wrote: »

As three executors are now responsible for the sale of the house, does the original contract still stand?

I can't see why it wouldn't just because there are now additional executors. As far as I'm aware, third parties are entitled to assume that any executor has the right to act on behalf of the estate.

m0t

At the time of the agreement one executor was acting and the other two had been served a notice of power reserved.

The acting executor had the legal right to make the agreement, and the decision of the two other executors to become involved doesn't reverse that.

If you are concerned that the agreement doesn't represent the best interest of the estate then you need to examine the options in the contract for cancellation or take action against the executor who made the agreement (note this wouldn't cancel the contract as the action is against the other executor).

G_M

You have raised 2 separate issues:


The first has been answered. If the contract was clearly entered into properly at the time, it stands. If I sign a contract, and then get married, is the contract negared because my new wife has not signed? Of course not.

The implications of 'sole selling rights' weren't made clear to the estate.

Did the Executer who signed read what he was signing? Was the contract ambiguous? The agent does not have to 'make clear' every aspect of the contract - it is for the party who signs to check and query anything he does not understand.

pphillips

jerrypf wrote: »

As three executors are now responsible for the sale of the house, does the original contract still stand?

I believe the original executor remains bound by the contract but I think it would be a grey area as to whether the contract was still valid if the original executor decided to resign.

davidmcn

pphillips wrote: »

I think it would be a grey area as to whether the contract was still valid if the original executor decided to resign.

Can you explain why you think it might not be valid? As far as the EA is concerned, they've entered into a contract with the estate of the late Mr/s X, not with an individual executor.

notbritishgas

In my opinion at the time the contract was signed there was only one executor as 2 others had power reserved, ie no power.
they can of course change their mind later (how I do not know) but surely that only applies to decisions going forward.
So I think the contract stands.