Does the best offer on a house need to be accepted?

SpannerMonkey78

My Dad is a beneficiary in his father's will, and has five siblings, all of whom are equal beneficiaries in the estate. Dad's youngest brother would like to buy the house and he has made an offer, but has not sold his house. My cousin has made a higher offer and she can buy the house straight away.
The brother who wants to buy the house has a very cosy relationship with the executor who is also a beneficiary (the oldest sister), but has few dealings with my Dad or the others. The higher offer has been rejected, even though the majority of the beneficiaries want to accept it (not just because it is higher, but because it can be completed quickly). It's already been almost nine months since Grandad died. The executor says that the solicitor dealing with the estate thinks it fairest if by Dad's brother is given six months to sell his house.
- Is the solicitor likely give a decision on what is fairest, or is the executor just saying this?
- Is the solicitor likely to advise that it's OK to accept a lower offer, and to wait up to six month for the sale of a house to fund the offer?
- Can the executor ignore the other beneficiaries wishes?
- Can the executor take a lower offer? Surely this isn't in the best interests of the other beneficiaries.
- If the sale goes ahead to the lower bidder and the other beneficiaries lose out compared to the higher offer, where do they stand? Is anyone liable for the theoretical shortfall?
Dad's not computer literate and doesn't want to cause a fuss, but equally he and the majority of the beneficiaries don't want to get walked all over. Can they do anything to stop the executor taking the lower offer? They've made it clear to the executor that they don't want to wait for a lower offer, but the executor has become uncommunicative and almost hostile. Help!

Linton

The executor is free to choose any offer he/she believes is in the interests of the beneficiaries.  The views of the beneficiaries have no legal weight, though to avoid unnecessary friction it may well be prudent for an executor to get their opinions. There are circumstances where the highest offer is not in the interests of the beneficiaries. When I was an executor we accepted a lower offer for the house.  When the amount of money was divided by the number of beneficiaries it was clear that the difference per beneficiary would be minimal and that speed was more important.   

Ultimately the only way of stopping executors doing what they want to do is to get the courts to replace them which could be a difficult, lengthy and expensive process.  Also, the beneficiaries can sue the executors if they have evidence that they have acted improperly and the courts could hold the executors  personally liable for the losses.  However this may not be easy, quick or cheap either. In any case I cant see a dispute about which offer for a house to accept being something the courts would be that interested in, unless fraud was alleged. Perhaps a solicitors letter or some form of mediation may achieve the desired objective without the need to do something too drastic.

In your situation is the difference for each beneficiary significant?  Are they prepared to split the family to get their way?  If so I suggest they consult their own solicitor.  Otherwise I an afraid they will just have to accept the situation.

If you google for things like "executor disputes" you will get a lot of useful info from a large number of solicitors. 

One thought - do either of the people wanting to buy the house live there at the moment?  One could see that being a good reason for the executor giving them the opportunity to buy the house.

And another thought - since it seems that Dad is the beneficiary rather than yourself perhaps he should be left to handle things in the way he sees fit.

Marcon

SpannerMonkey78 said:

- Is the solicitor likely give a decision on what is fairest, or is the executor just saying this?
- Is the solicitor likely to advise that it's OK to accept a lower offer, and to wait up to six month for the sale of a house to fund the offer?

Very unlikely that a solicitor would be daft enough to put themselves in the position of referee. Very unlikely that they would advise pursuing a course of action which is unlikely to be in the best interests of the beneficiaries.

I'd be tempted to make the above points to the executor, albeit as tactfully as you can rather than head-on, and ask if you could see the solicitor's reasoning in writing so you (or rather your dad) can relax, secure in the knowledge all is going to plan.

When you get a negative response to the above, as you almost certainly will, time for a spot of independent legal advice and a solicitor to solicitor letter asking for the explanation.

Mojisola

Marcon said:

I'd be tempted to make the above points to the executor, albeit as tactfully as you can rather than head-on, and ask if you could see the solicitor's reasoning in writing so you (or rather your dad) can relax, secure in the knowledge all is going to plan.
When you get a negative response to the above, as you almost certainly will, time for a spot of independent legal advice and a solicitor to solicitor letter asking for the explanation.

Neither the executor nor their solicitor has to show anything to the beneficiaries, so expect that request to be rejected.

If the beneficiaries are willing to talk to a solicitor about the executor's refusal to accept the higher offer, go for that.  If the executor realises that she could be held financially liable for not accepting the higher offer, she may change her mind.

Before that, though, decide if it's worth it from a financial as well as a family relations viewpoint.

My uncle's house was sold to a neighbour's daughter at a reduce price because that's what he had told his siblings he wanted to happen in recognition of how good the neighbour had been to him - all the beneficiaries agreed.

The problem here is that the executor isn't keeping the beneficiaries onside.  If she is manipulating the sale of the property, can you be sure that she is dealing with the rest of the estate properly?

xylophone

As the youngest sibling already has an interest in one sixth of the property and is the direct descendant of the deceased ( and assuming that he is offering at least fair market value), it seems reasonable to allow him  a certain amount of time to find a buyer for his existing property. 

How long is the cousin prepared to wait? 

Dox

xylophone said:

As the youngest sibling already has an interest in one sixth of the property and is the direct descendant of the deceased ( and assuming that he is offering at least fair market value), it seems reasonable to allow him  a certain amount of time to find a buyer for his existing property. 

How long is the cousin prepared to wait? 

Why? This isn't about sentiment. There's a better offer on the table and executors need to act in the best interests of all beneficiaries, not just one.

TBagpuss

The executors have to act in the best interests of the estate / beneficiaries. They should not be preferring one benficiary over others. 

So normally, you would expect them to accept the higher offer, unless there is a good reason not to (e.g. there is reason to think that the person making the offer is likely to withdraw / fail to come up with the money) 

What is the difference between the two offers? Is the brother ( or the executor) offering to make up the difference from their own share so that the other beneficiaries don't lose out?  
If all other things were equal, it might be reasonable to allow the brother a bit of time, especially if there were going to be some savings (e.g. because it was a private sale rather than having to use agents)  but in this instance you have the cousin who is also a family member and is willing to proceed straight away, and who is offering more, so it is difficult to see that it is in the interests of the estate to refuse that offer.
I think it depends on how much difference it is going to make to the other beneficiaries and what effect it will have on family relationships. Would the other beneficiaries be willing to agree a short delay (maybe 3 months) if the brother paid the full amount which the cousin has offered>?  Might that be an acceptable compromise to suggest? It gives the brother a fair opportunity to buy without delaying things too much for everyone else. If not, put in writing to the executor and that solicitor that yu do not think it is in your r he other beneficiaries interests to accept the lower offer and agree to a delay, and ask that they confirm that the property will be sold to the highest bidder unless of course they are offering to reimburse you for any short fall from their own share and pay interest for the extra period during which the dale is delayed. 

AnotherJoe

OP I think the executor would clearly be liable for the losses of the other 4 executors and they would be a slam dunk to  win in court, which might only be small claims court since whatever sum it is is divisible by 4 so presumably under the limit ? So cheap for them to take action. 

I would sell to the cousin unless at the very least the sibling makes up the difference as it will be harder for them to claim losses if it's delay rather than a specific amount of money they are complaining about. 

I'm surprised the executor evens think it's a reasonable position taking a lower offer that's less certain and will take far longer.

i think the siblings need to be sending letters before action now. 

Linton

AnotherJoe said:

OP I think the executor would clearly be liable for the losses of the other 4 executors and they would be a slam dunk to  win in court, which might only be small claims court since whatever sum it is is divisible by 4 so presumably under the limit ? So cheap for them to take action. 

I would sell to the cousin unless at the very least the sibling makes up the difference as it will be harder for them to claim losses if it's delay rather than a specific amount of money they are complaining about. 

I'm surprised the executor evens think it's a reasonable position taking a lower offer that's less certain and will take far longer.

i think the siblings need to be sending letters before action now. 

Err, how can the beneficiaries sue the executor if the executor has not actually sold the house and distributed the estate?

xylophone

Does the will direct the executor to sell the property?

This isn't about sentiment.

I think it would be reasonable to give the brother a chance to find a buyer for his property, even if only another couple of months - it is not impossible that the proceeds would enable him to make an offer that matched his cousin's.

Of course, the proceeds might be less than fair value for the parental home so that would settle the matter.

theoretica

The thing about measuring the best interest of beneficiaries is it isn't necessarily just by numbers who benefit, but also by how much - sell to grandchild for a bit more money, some beneficiaries happy to have a little more and maybe a bit sooner.  But the son not getting to buy the house and live in the family home as he hoped is quite a large negative to one beneficiary to balance against the smaller positives to other beneficiaries of selling to the grandchild. 

Did the deceased ever say he hoped one of his children would have the house?