Can Executor purchase property from joint beneficiary?

Mickey666

Casciana said:

The brother has offered the average of all valuations obtained, but the sister wants the highest of the ‘initial marketing prices’ suggested by the estate agents who ‘smelled business’.

Not unusual.  The buyers wants the lowest price, the seller wants the highest price.  If the beneficiaries can't come to an agreement then the only practical way is to put the house on the market, perhaps with a deadline for highest offers.  Say 6 months, maybe 9, or whatever the beneficiaries agree.  When the deadline arrives the buying beneficiary must match the highest price if they want to buy out the other beneficiary, otherwise the house is sold to the open market and the proceeds divided equally.   Such an approach will incur additional estate costs of course - additional insurance, some ultility bills etc.

Also the 'selling beneficiary' should be prepared for a lower price than they might anticipate.  I know someone in a similar situation where the highest market offer received was way below expectation . . . but that's the problem with unrealistic expectations.  So not only could the two beneficiaries not agree on a price in the first place, the 'selling beneficiary' was still upset even after getting the market price.  Even simple wills so often cause family rifts

naedanger

If I was in the sister's position, I might not be happy that the brother gets to see what the others bid. (But perhaps that is because I am used to the Scottish system where sealed bids are fairly common practice.) And if the brother does get the option to up his bid I would have thought any other interested parties should be permitted to increase their offers in response.

Finally I am not commenting on the legal position. I have seen it said that if the other beneficiary disagrees (for any reason whatsoever, whether justified or not) the house cannot be sold by the executor to himself (because of self dealing), although I don't know if that is true. If it is then it would seem to put the sister in a good negotiating position.

Retiredwelshman

Casciana said:

The brother has offered the average of all valuations obtained, but the sister wants the highest of the ‘initial marketing prices’ suggested by the estate agents who ‘smelled business’.

Are you willing to put some figures on here? (Please can you also confirm you are not a Scottish resident).
Not being nosey just curious how much apart you are and what the options are.

Keep_pedalling

When it come to the family home, it is not always about the cash. The sister may actually feel she will only get closure once the house is sold and out of the family. 

Often one child wants to keep the family home for reasons of sentimentality rather than a practical common sense. There are millions of houses out there, why does the brother particularly want this one? Is he actually planning on living in it long term? Unless he really want it as a long term family home then I would advise they just sell and split the proceeds. Renting it out or doing it up to sell later at a profit is going to cause big problems with his sister.

Robert_McGeddon

Casciana said:

The brother has offered the average of all valuations obtained, but the sister wants the highest of the ‘initial marketing prices’ suggested by the estate agents who ‘smelled business’.

There are presumably ongoing costs for maintenance, etc. reducing the net value of the estate. Council tax may become payable.

There will be costs of disposal if sold to a 3rd party - legal, energy efficiency, estate agents, clearance and others. The headline selling price will not be the same as the value actually achieved on a sale.

Presumably the EA valuations are for marketing (as there was a RICS valuation for probate). A sale would not be based on an EA marketing quote but what the executor and purchaser agree - the highest EA figure is therefore not a hard number. Anyway, around my way at least, sales seem to be below initial EA listing.  Then there's covid and its economic impact to consider.

Having said all that it's in the best interests of both of you to proceed quickly. If you can agree, well and good. If not, then I would suggest you put it on the market and sell, having told your sister your offer was one time ony and will not be reinstated later. If you do sell then at least it's demonstrable that your sister got 50%.

Interesting to observe that (presumably) your legal costs come from the estate whilst she's paying hers personally.