Will item question

Dave2345

I’m a beneficiary in a will entitling myself and one other to a 50% share of the estate, part of which is a property.

It  states in the will that myself or the other benefactor gets first refusal on the property if we would like to purchase it so this would mean buying the other persons share which I intend to do.

I’d like to know how far the first refusal part goes as there are no specifics around it, if another potential buyer comes along but I am not proceed-able what does the first refusal mean.

We decided to put the property on the market as it’s a hard one to value in an attempt to gauge interest and find it’s level as estate agents don’t really know themselves, their stance was we’ll try it here and see, currently there has been no interest and already one price drop. 

There are two executors, a solicitor and a friend of the deceased. 

sheslookinhot

Does the other beneficiary wish to buy the property ?

If not,  can you simply make an offer for the property to the estate agent ? Maybe notifying the 3 other parties.

Hoenir

Are you in a position to purchase the property without undue delay? 

Dave2345

No the other beneficiary doesn’t want to buy the property, but if my sale isn’t  proceed-able but someone else is can I say hang on I get first refusal but what is the legal stance.

The executors have the power to decide who buys is my understanding. Also until we or I have an understanding of its value through market interest I’m not going to say I’ll pay this for it. 

Dave2345

@Hoenir yes I am, I have a buyer currently with no chain, it’s a double edged sword where they want as much as possible and I don’t. 

I can make an offer but it will be way below the asking price as we have nothing to gauge it on and I see it as being over priced. I’m just interested to know what the first refusal but really means if the executor says ok we’ll go with someone else for the purchase if I loose my buyer say. If another buyer makes an offer I’ll match it potentially because I get first refusal as there no need for bidding over them. 

AP3

My understanding, and that doesn't mean I'm right, is that the executor(s) have to offer the property to you before they can offer it for sale to anyone else. That said, they can also name the price, which may be above or below what it would actually sell for on the open market.

Get them to name a price, which you can then accept of refuse. If you refuse (because they high-ball you), you can still make an offer when the property goes on the market like anyone else.

sheslookinhot

Remember that the executors will try and gain maximum sale price. You would agree with this if you and the other beneficiary were to share the selling price of the house.

Can you talk with the other beneficiary and perhaps come to an agreement ?

At least there has been a price drop so you will be getting close to a selling price. 

Can you suggest getting an RICS valuation ?

Dave2345

Thanks for the reply. I have a feeling the high balling has happened with the starting price, we had discussions before going to market and I said I wasn’t happy with the agents valuations but there have been no offers or prices discussed. 

Agents always go high to get the instruction and then the waiting and reductions happen. They knew I was an interested party at the outset. I said I’ll risk going to market and am happy for it to find its level, wait and then make a decision, the other beneficiary is somewhat desperate to sell. 

I was just interested to know what the legal stance was on first refusal.

Hoenir

Dave2345 said:

I can make an offer but it will be way below the asking price as we have nothing to gauge it on and I see it as being over priced. 

The executors should continue to market the property and ascertain a fair value. You can then decide whether to match it or not

theoretica

Not a legal answer, but my understanding has been that it is like for like - we have an offer for X expected to complete in 4 months - would you like to/can you match this?  First dibs, but not better terms, so not a lower offer or longer time.

Dave2345

Thanks for all the answers. Went and talked to the other party at the weekend and we’ve agreed a very good price I would say. 

Downside now is the solicitor dealing with the estate wants to hold all of the money including proceeds from the sale of the house for a further 10 months in case any claimants come forward. Notices were placed last December in all relevant places inviting anyone who feels they may have a claim to come forward.

meeting with the solicitor this morning to discuss the way forward and see what they will release. Problem with this is the other person requires 100% of the house sale proceeds for their onward move. I also have a buyer who won’t wait 10 months……