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Pre-emptive agreement confusion
Bloomfieldlady
Posts: 7 Forumite
Hi, I’m not sure where to post this but hoping there maybe some legal expertise out there?!
Recently, due to the intestate death of my MIL, we inherited a third of an estate alongside my BIL and SIL. As part of the distribution, there was a pre-emptive agreement put in place, meaning that each party has to offer any property/land to the other parties should they decide to sell.
Recently, due to the intestate death of my MIL, we inherited a third of an estate alongside my BIL and SIL. As part of the distribution, there was a pre-emptive agreement put in place, meaning that each party has to offer any property/land to the other parties should they decide to sell.
One of the parties is planning on demolishing one of the buildings in order to facilitate development of another building. We know that they will have to offer the developed building to the other parties to purchase once consent is granted, under the terms of the pre-emp, but what is the status of the building they are planning on demolishing?
Clearly they are “disposing” of it, not “selling” it, but are they obliged to offer it to the other parties under the terms of the Pre-emotive agreement, and will they be in breach of that agreement if they demolish it without offering it first?
Clearly they are “disposing” of it, not “selling” it, but are they obliged to offer it to the other parties under the terms of the Pre-emotive agreement, and will they be in breach of that agreement if they demolish it without offering it first?
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Comments
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Was this agreement drawn up by a solicitor, or was it a DIY thing that may have no legal standing.Sounds like a potential nightmare which will require professional advice.1
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Will depend on the precise wording of the PEA.
I personally would argue that "demolition" is not a disposal as the land on which the building stood is not being sold.If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales1 -
Beware, CGT may be liable if value between death and disposal increases enough... (I've been there and paid it)1
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it was drawn up by the family solicitors so is fully legal and above board.Keep_pedalling said:Was this agreement drawn up by a solicitor, or was it a DIY thing that may have no legal standing.Sounds like a potential nightmare which will require professional advice.
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None of us can advise without seeing the pre-emption (not "pre-emptive") agreement.1
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What are the penalties if one of the parties choses to ignore the PEA?Bloomfieldlady said:
it was drawn up by the family solicitors so is fully legal and above board.Keep_pedalling said:Was this agreement drawn up by a solicitor, or was it a DIY thing that may have no legal standing.Sounds like a potential nightmare which will require professional advice.If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales0 -
Just because it was drawn up by the family solicitors does not mean that it is both fully legal and above board. Just probably....Bloomfieldlady said:
it was drawn up by the family solicitors so is fully legal and above board.Keep_pedalling said:Was this agreement drawn up by a solicitor, or was it a DIY thing that may have no legal standing.Sounds like a potential nightmare which will require professional advice.2 -
How far down the line of 'serious dispute and family fall out' has this situation travelled?0
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