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  • FIRST POST
    • Trebormint
    • By Trebormint 7th Jul 18, 1:23 PM
    • 25Posts
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    Trebormint
    Modern form of Auction
    • #1
    • 7th Jul 18, 1:23 PM
    Modern form of Auction 7th Jul 18 at 1:23 PM
    Hi,

    After loosing my parents last year, my brother (who is the will executor) has chosen to sell their property via the 'modern' method of auction. After doing some research on this approach, the only advantage to selling the property this way seems to be for the agent and auction house, as the fee associated with this process is imposed on the buyer and is putting off potential purchasers. I have been approached separately by 2 potential buyers both offering the asking price if the property was sold via a conventional sales process which seems reasonable to me.

    The odd thing is that despite telling the solicitors acting for my brother (we are not speaking) concerning these offers and despite having firm offers on the table according to the solicitors even higher offers than the asking price, my brother has subsequently lowered the asking price twice!!!

    I am concerned that he is therefore not acting in the best interests of the estate and whether this alone would be grounds to have him removed as the executor?

    He seems to be wasting estate money on fees, expenses etc that could be resolved given that offers above the asking price have been made and has also chosen not accepted offers over the asking price, it's crazy!!

    Any comments most welcome
Page 1
    • agrinnall
    • By agrinnall 7th Jul 18, 3:49 PM
    • 20,458 Posts
    • 16,245 Thanks
    agrinnall
    • #2
    • 7th Jul 18, 3:49 PM
    • #2
    • 7th Jul 18, 3:49 PM
    I am concerned that he is therefore not acting in the best interests of the estate and whether this alone would be grounds to have him removed as the executor?
    Originally posted by Trebormint

    Possibly, but you need to take legal advice (and I suspect that you might need legal representation if you choose to go ahead with an attempt to have him removed).
    • Trebormint
    • By Trebormint 8th Jul 18, 7:28 AM
    • 25 Posts
    • 0 Thanks
    Trebormint
    • #3
    • 8th Jul 18, 7:28 AM
    • #3
    • 8th Jul 18, 7:28 AM
    i was rather hoping that someone on here may have a legal back ground that could help as i think but am not sure if this justifies action against my brother.
    • agrinnall
    • By agrinnall 8th Jul 18, 8:05 AM
    • 20,458 Posts
    • 16,245 Thanks
    agrinnall
    • #4
    • 8th Jul 18, 8:05 AM
    • #4
    • 8th Jul 18, 8:05 AM
    How can you possibly know whether anyone on here really has a legal background, whatever they say? If you want legal advice (and I think you do) then you have to pay to see a qualifieed professional.
    • avacapri
    • By avacapri 8th Jul 18, 8:14 AM
    • 30 Posts
    • 8 Thanks
    avacapri
    • #5
    • 8th Jul 18, 8:14 AM
    • #5
    • 8th Jul 18, 8:14 AM
    get professional help, you need to know where you stand, if you are concerned about price to speak to a few firms and see if they either do a fixed fee interview or maybe fee 30 min, an alternative is the local CAB they run legal clinics, find the times and if you have to book.
    • middleclassbutpoor
    • By middleclassbutpoor 8th Jul 18, 8:52 AM
    • 126 Posts
    • 137 Thanks
    middleclassbutpoor
    • #6
    • 8th Jul 18, 8:52 AM
    • #6
    • 8th Jul 18, 8:52 AM
    I would get the offers submitted in writing with proof that these people have the funds to proceed on this basis and then retain copies for your records and send onto the Solicitor. This then stops any 'nonsense' about the offers not being known or there being offers which had no validity as such.

    I would also as others have recommended, go an seek the advice of a solicitor. I would ask them for advice but personally I would be asking for your share to be based on the offers you have received (net of fees) should your brother and solicitor choose to go down a different route which results in a lower price being achieved.

    Not sure if the above is possible but as a minimum I would be hoping if not, they will at least advise you on how to ensure that the estate is distributed correctly and your interests are protected in all of this.
    • eddddy
    • By eddddy 8th Jul 18, 10:22 AM
    • 6,604 Posts
    • 6,474 Thanks
    eddddy
    • #7
    • 8th Jul 18, 10:22 AM
    • #7
    • 8th Jul 18, 10:22 AM
    After loosing my parents last year, my brother (who is the will executor) has chosen to sell their property via the 'modern' method of auction.
    ...
    I have been approached separately by 2 potential buyers both offering the asking price if the property was sold via a conventional sales process which seems reasonable to me.
    Originally posted by Trebormint
    Just to clarify one aspect of how this almost certainly works...

    Your brother will have given the auctioneer sole selling rights.

    So if either of these offers are accepted outside the auction, the auctioneer will still have to be paid 3.5% +vat (minimum 5000+vat).

    The contract that your brother signed will say that if the buyer doesn't pay the fee (which they probably won't in this case), then the seller agrees to pay the fee instead.
    • Trebormint
    • By Trebormint 8th Jul 18, 1:13 PM
    • 25 Posts
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    Trebormint
    • #8
    • 8th Jul 18, 1:13 PM
    • #8
    • 8th Jul 18, 1:13 PM
    I think that applies to a standard auction process but the 'modern' form of auction seems to differ slightly and I fully understand why a prospective buyer would be put off from purchasing a property in this way. Why though good money away (in this case 18,000) for auction/agent fees when this is not actually part of the properties value. It certainly doesn't make sense to me, and has clearly been designed by a group of estate agents to ensure they have a more secure revenue stream from house sales vis this method of auction.

    My biggest concern is that offers of or over the asking price have been discussed yet declined, and subsequently my brother has then further reduced the asking price. This just doesn't make sense and with additional solicitors fees which will keep building and the auction fees we (as beneficiaries) are now loosing money which is not in the best interests of the estate.

    I think I will seek legal advice now, as there just isn't a logical explanation for this and I am growing tired of my brothers ignorance.
    • eddddy
    • By eddddy 8th Jul 18, 2:03 PM
    • 6,604 Posts
    • 6,474 Thanks
    eddddy
    • #9
    • 8th Jul 18, 2:03 PM
    • #9
    • 8th Jul 18, 2:03 PM
    I think that applies to a standard auction process but the 'modern' form of auction seems to differ slightly...
    Originally posted by Trebormint
    No - what I describe in the post above specifically relates to the 'modern' method of auction.

    A conventional auction is very different.

    So if one of your private offers is accepted, it sounds like the estate (or your brother) becomes liable for a 18k fee - which may be part of the problem.


    If the auctioneer's contract didn't work that way, all potential buyers would just make offers direct to the seller, instead of bidding in the auction - in order to avoid an 18k fee.

    You could try asking your brother for a copy of the contract he signed, to see the full details.
    Last edited by eddddy; 08-07-2018 at 2:06 PM.
    • steampowered
    • By steampowered 8th Jul 18, 2:45 PM
    • 2,669 Posts
    • 2,603 Thanks
    steampowered
    Why did these 2 offers come into you, rather than through the estate agent?

    As you talk about 'lowering the asking price' it sounds like the property is already on the market?
    • davidmcn
    • By davidmcn 8th Jul 18, 10:00 PM
    • 8,022 Posts
    • 8,271 Thanks
    davidmcn
    Changing the executor without your brother's agreement means court action - so costs (incurred by you and/or the estate) and further delay in the house being sold.


    I suppose another option might be to pursue him after the event for the shortfall caused by his actions (if you can prove those and if he's likely to be able to afford to pay out for the difference).
    • Trebormint
    • By Trebormint 10th Jul 18, 12:57 PM
    • 25 Posts
    • 0 Thanks
    Trebormint
    Hi, I will pursue my brother after the event as I have emails making the offer of the full asking price.

    Steampower - i am not sure what the relevance of your question is concerning why individuals have approached me directly. They did and that is that!
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