Executors and self-dealing

Jennex

The pickle continues. I am joint executor and beneficiary of a property with a sibling. Sibling fervently wants to buy my half of the property. I am okay to sell since I don't want to live there, but we have a clear conflict of interest and not a good relationship.

I've only just learned about the self-dealing law so that's been a bit reassuring. I've arranged estate agent viewings for the property. Sibling insists on being there, fair enough I thought. But look, they also weight the estate agent's pricing by being there - going on about the extensive work that the house will need according to an architect they say they've consulted, plus handing over a couple of outdated RICS survey reports to the estate agents. At least one of those reports I find a bit dodgy because it was commissioned by sibling, and the surveyor put the value of the house just under the IHT threshold like he was doing us a favour.

They also keep bringing up how it's a valuation because they want to buy me out to the estate agent, so making it clear there'll be no business from us. In private, they say repeatedly to me the RICS survey is the 'real price' in their opinion, so I will have to fight not to get that value again put into the final average we draw for the sale price.

Is what they're doing illegal? Should I just deal with the estate agent myself and put the property out on market? Private buyers in the past have offered 2 - 3x almost the surveyor's valuation for the plot, that's why I'm trying to steer away from RICS and to the estate agents.

I have a feeling we're about to retreat behind a wall of respective solicitors and just want to be well-informed before I meet mine.

DE_612183

Regardless of what the Estate Agent says or anyone else, the property is worth what you want to sell for and what your sibling is prepared to pay.

He can't force you to sell to him - you could of course put the property on the open market and he can then buy it from there - at least then you will get the best price - whether it's his or someone elses.

p00hsticks

If you can both agree to accept it, get a RICS 'Red Book' proper valuation paid for by the estate. 
(and have it so that either neither or both of you are there and you leave the surveyor alone to do his job). 

Keep_pedalling

p00hsticks said:

If you can both agree to accept it, get a RICS 'Red Book' proper valuation paid for by the estate. 
(and have it so that either neither or both of you are there and you leave the surveyor alone to do his job). 

Agree this is the best option.

Jennex

p00hsticks said:

If you can both agree to accept it, get a RICS 'Red Book' proper valuation paid for by the estate. 
(and have it so that either neither or both of you are there and you leave the surveyor alone to do his job). 

Well, I was going to, but the private (market price) is so vastly bigger than the survey prices we currently have that I wonder... is that really the right way to go? I mean if both of us wanted to sell the place, we certainly wouldn't be offering it at the survey price.

mattojgb

Your sibling does not appear to be acting in the best interests of the estate. They are clearly conflicted in wanting to buy the property for the lowest amount whilst their duty as executor is to maximise the value of the estate for beneficiaries. Both of you will need to agree a way forward or you would need to go to court. The self-dealing rule applies even if your sibling pays a fair price.

Perhaps you could agree on selling the property by auction.

WYSPECIAL

Why not simply tell him what you want for your half?
If he doesn't want to pay that it goes on the open market and finds its own value.

Jennex

WYSPECIAL said:

Why not simply tell him what you want for your half?
If he doesn't want to pay that it goes on the open market and finds its own value.

Well, I did and he spouted a load of angry insults and said it would be the end of any family relationship.

As co-owner I don't think I can put the house on the open market without asking the court to intervene.

Savvy_Sue

Jennex said:

WYSPECIAL said:

Why not simply tell him what you want for your half?
If he doesn't want to pay that it goes on the open market and finds its own value.

Well, I did and he spouted a load of angry insults and said it would be the end of any family relationship.

As co-owner I don't think I can put the house on the open market without asking the court to intervene.

How much of a family relationship do you want (with someone who spouts angry insults when you attempt to start negotiations)?

Jennex

Savvy_Sue said:

Jennex said:

WYSPECIAL said:

Why not simply tell him what you want for your half?
If he doesn't want to pay that it goes on the open market and finds its own value.

Well, I did and he spouted a load of angry insults and said it would be the end of any family relationship.

As co-owner I don't think I can put the house on the open market without asking the court to intervene.

How much of a family relationship do you want (with someone who spouts angry insults when you attempt to start negotiations)?

Sadly he's the only family member I have left, and I'm used to having to accept abuse until he decides he likes me again.

Savvy_Sue

Jennex said:

Savvy_Sue said:

Jennex said:

WYSPECIAL said:

Why not simply tell him what you want for your half?
If he doesn't want to pay that it goes on the open market and finds its own value.

Well, I did and he spouted a load of angry insults and said it would be the end of any family relationship.

As co-owner I don't think I can put the house on the open market without asking the court to intervene.

How much of a family relationship do you want (with someone who spouts angry insults when you attempt to start negotiations)?

Sadly he's the only family member I have left, and I'm used to having to accept abuse until he decides he likes me again.

Well you may be used to it, but IMO you don't HAVE to accept it. It's not as if you're trying to keep the peace to enable others to maintain a relationship, is it?

You can't do anything without him, but equally he cannot do anything without you. He wants to buy your half of the property, but does he intend to live there long term? It may be difficult to stop him moving in and remodelling the place (which his conversations with architects etc indicates he may wish to do), but he won't be able to sell it on if you dig your heels in. 

I know you don't want to retreat behind a wall of solicitors, but that doesn't stop you having one conversation with a solicitor of your choosing, and asking them to send one letter setting out how the law applies to THEM and what steps you may take to ensure they comply with it. One conversation, one letter, then he decides how to respond, but you don't have to take it any further with a solicitor. 

What valuation was used for probate, and where did that come from? 

If it was a low valuation, and then he pays you a lot more than that, we may be in CGT territory. That's a point for negotiation between you. He may not understand how negotiation works, but doesn't stop you trying it.