HOUSE SALE

[dosset]

if there are two executors of a will and one wishes to sell the property at a knock down price for a quick sale can the other executor object by wishing to sell for market value

[dzug2]

Yes he can.

But remember market value is what it will sell for, not someone's wishful thinking of what they would like it to sell for.

What do the beneficiaries think? It's they who will be beneficially/badly affected by the decision.

Can it be sold by auction? By definition that's market value.

[dosset]

Both beneficiaries are the executors of will

[twix123]

If IHT is involved I think that HMRC would expect a market value not a 'knock down price' in order that they can get their maximum revenue!

[Peter Pedant]

are there no valuers who can give a value ?

a judge I think would order sale at auction wouldnt he?
any judges out there ?

......are the executors of opposite gender - and are the two speaking to each other ?

fr instance suppose the knock down price is 100k and there are others not selling at 120k in the same street, and have been on the market for a year......then I dont think its knock down


and yes I think HMRC will tax at a market value
but that of course is also open to negotiation

[dzug2]

The executors could come to an agreement to sell now at whatever it sells for and to split the proceeds unevenly. If one is desperate for the cash then that might work

I would guess that a judge would - eventually - order an auction - but it might depend on how long the situation has been going on for. A few months - no. A year or more maybe

[tonywiltshire]

There can be up to four Executors and If the Executors do not agree, it may cause problems. For example, if one Executor wants to the sell the house and the other disagrees, there will be no sale. If you have serious disagreements with other Executors, you may each need to appoint an Attorney who will complete the arrangements. Disputes may have to be settled in court.

[Barmaid]

Ultimately this could end up in Court - you have to consider whether the costs of obtaining an order for sale are going to be worth it. It really depends on the actual difference between the "knock down" price and the sale price.

Furthermore, whilst the property stands empty, there are costs of insuring it and looking after it.

If the executors disagree, they can seek the directions of the Court. What the Judge will do will depend on the evidence. Both sides will undoubtedly put in evidence of valuations. But such evidence is only an opinion as to the value. The true value can only really be ascertained by offering the property on the open market and seeing if it sells. The Court could order a period of offering on the open market, with a long stop date of an auction. It could also order an auction (but remember for standard properties, auctions often result in a reduced value).

Would it be possible for the executors to agree the property be marketed for, say, 4 months and if no realistic offers are forthcoming, then it be auctioned or sold by sealed bids?

As for HMRC, the sale price can be substitued for the probate valuation. It is only if the sale is at a significant undervalue to a connected party that the District Valuer is likely to get involved.

[dosset]

Thanks for all your answers