# Executor wants to buy property in will



## Gabbo23 (16 Nov 2021)

Hi



Can someone let me know if the executor of a will can simply pay the valuation price of a property at time of death and buy it, irrespective of the current value? What if the current value if significantly higher?



Do the beneficiaries have a right to contest the transfer / sale?


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## Pinoy adventure (16 Nov 2021)

It would really depend on the wording of the will. 
If the will said ~the house should be sold but doesn’t state by who well yes they could buy it once a fair market value is met.
Perhaps get 3 separate valuations done on the property and go with the middle of all 3.


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## Johnno75 (16 Nov 2021)

The Executor should proceed with caution. S/he should get the three updated valuations (as alluded to by @Pinoyadventure) and then seek the consent of the beneficiaries as to his intentions. Otherwise the executor could leave him/herself open to subsequent allegations of conflict of interest and an action to have the transaction set aside.


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## elcato (16 Nov 2021)

Make sure the house is put on the open market. Then if he is the highest bidder let him buy. I wouldn't allow a private sale here.


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## Gabbo23 (16 Nov 2021)

Pinoy adventure said:


> It would really depend on the wording of the will.
> If the will said ~the house should be sold but doesn’t state by who well yes they could buy it once a fair market value is met.
> Perhaps get 3 separate valuations done on the property and go with the middle of all 3.


I've never seen the will though


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## jpd (16 Nov 2021)

If probate has been granted, then the will is public and can be accessed by anyone


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## Johnno75 (16 Nov 2021)

Gabbo23 said:


> valuation price of a property at time of death and buy it, irrespective of the current value? What if the current value if significantly higher?


The Executor is bound to obtain the best price possible. The valuation as date of death is irrelevant. It’s the valuation as at the date of sale that counts. (My above post has been amended to reflect this)


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## Pinoy adventure (16 Nov 2021)

Johnno75 said:


> The Executor is bound to obtain the best price possible. The valuation as date of death is irrelevant. It’s the valuation as at the date of sale that counts. (My above post has been amended to reflect this)


Couldn’t the Executor advise the estate agent doing the valuation of his intentions and perhaps get a lower valuation too suit his/her needs ?


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## mathepac (16 Nov 2021)

You mean fiddle the books and thereby lowering any taxable element of the inheritance and perhaps depriving other beneficiaries of their fair  share? Illegal and actionable but not unknown where properties change hands within families.


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## MOB (17 Nov 2021)

https://www.askaboutmoney.com/threa...ith-various-shareholdings.220235/post-1686615Similar issue addressed in this thread


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## Salvadore (19 Nov 2021)

Gabbo23 said:


> Do the beneficiaries have a right to contest the transfer / sale?



The beneficiaries have a right to ensure that the sale was for the full market value.


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## Gabbo23 (5 Jan 2022)

Just an addendum to this. The executors have decided to push on with a transfer at date of death value and not place property on the market. I've now engaged a solicitor and they're biding their time before intervening/injuncting


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## Pinoy adventure (5 Jan 2022)

Gabbo23 said:


> Just an addendum to this. The executors have decided to push on with a transfer at date of death value and not place property on the market. I've now engaged a solicitor and they're biding their time before intervening/injuncting



Could I ask would there be much of a price difference?? 
Would the difference be worth the hassle of perhaps falling out with siblings over ??


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## Gabbo23 (5 Jan 2022)

Maybe 100k?


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## Clamball (5 Jan 2022)

Can you organise a current valuation as a beneficiary?  So at least you would know current value versus value at date of death.


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## Gabbo23 (5 Jan 2022)

Going to force an open market process


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## Horatio (5 Jan 2022)

I'd record my objection with the executors officially before deploying the solicitor. It gives them the opportunity to do the right thing before going down a more contentious route. It may be in vain but if it works out everyone would be better off.


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## ClubMan (9 Jan 2022)

Salvadore said:


> The beneficiaries have a right to ensure that the sale was for the full market value.


And doesn't the executor have a duty to ensure that the value of assets in the estate is maximised? The executor buying at a potentially discounted value sounds, at the very least, like a conflict of interests. But I am not a lawyer.


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## Pinoy adventure (9 Jan 2022)

ClubMan said:


> And doesn't the executor have a duty to ensure that the value of assets in the estate is maximised? The executor buying at a potentially discounted value sounds, at the very least, like a conflict of interests. But I am not a lawyer.



Would any beneficiary buying it cause a conflict of interest if bought with a discounted value ?? 
I think it’s fairly common where a member of the family buys the property and gets some sort of discount,which could put the ex into a bit of bother if anybody objected


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## ClubMan (9 Jan 2022)

Well that approach obviously didn't work in the original poster's case.


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## Thirsty (9 Jan 2022)

If a family member buys property then there's no agent fees or advertising costs; so not unreasonable to allow for that when agreeing purchase price.


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