QUESTION
Can an executor sell real property if one of three equal heirs doesn't agree with the sale or sale price?
Asked on May 19th, 2013 on Estate Planning - Michigan
More details to this question:
Situation is the executor entered into a sales contract without the knowledge of the other heirs. Before finding out there was a contract in place, another heir received a formal written offer on the house that is substantially higher than the amount the executor previously agreed to. Once the uninformed heir received the offer, it was presented to the executor who said, the house is already under contract for some lesser amount. Does the uninformed heir have any rights to stop the sale or receive damages equal to the difference in the offers? Thank you very much.
15 ANSWERS
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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The uninformed heir has no rights.
Answered on May 20th, 2013 at 10:11 PM
Probate Attorney serving Newport, OR
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Minor, Bandonis & Haggerty P.C.
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Since you use the term "executor," I wonder if probate has been opened. In Oregon, the term is "personal representative." But if someone was named personal representative (appointed by the court) then that person has the power to sell. Petition the court immediately; if the sale has not closed, it might still be stopped. If it has closed, then you may be able to surcharge the PR for not getting the best price on the property.
Answered on May 20th, 2013 at 9:35 PM
3 Awards
Much depends upon whether the Will gave the executor the authority to sell the property. In Nevada, most sales need to be confirmed by the court so the other purchaser could come in and bid. You should meet with an attorney who can review the Will and field documents in the probate matter to provide you with specific alternatives.
Answered on May 20th, 2013 at 12:08 PM
Yes, the executor may sell the property.
Answered on May 20th, 2013 at 12:07 PM
Sanford M. Martin
If the estate is in probate, any beneficiary may object to such an action by the executor. If the action is not in probate, a beneficiary may file in probate court an action regarding the matter. Generally, an executor will obtain a written agreement in such situation whereby the beneficiaries agree on the division of property, sale of property for a certain amount, and other issues depending on the nature of the estate. If the executor is following the provisions of the will or trust, the executor can do so without an agreement. An heir has a right to be treated as stated in the will. The facts in the question are not clear but one of the three equal heirs will not have a claim for damages or be able to stop the sale unless the heir is able to show in probate court that the executor did not follow the provisions of the will or failed to treat the heirs in an equal manner.
Answered on May 20th, 2013 at 12:07 PM
Taxation Law Attorney serving Glendale, CA
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Irsfeld, Irsfeld & Younger LLP
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Executor cannot sell unless executor first send Notice of Proposed Action to all potentially affected beneficiaries, and none of them object within 15 days; or executor gets court order, also with full notice. Be sure to let title company and/or real estate broker know that this property is in the estate and notice has not been sent. If it goes to court, essentially the court will conduct an auction, and any overbidders will get opportunity to buy. Consider consulting a lawyer.
Answered on May 20th, 2013 at 12:07 PM
Estate Planning Attorney serving Wilmington, DE
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Reger Rizzo & Darnall, LLP
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It is hard to stop a sale to a bona fide buyer, but you may be able to file a complaint and the Executor may be liable for the difference depending on all the facts of the situation.
Answered on May 20th, 2013 at 12:07 PM
Trusts Attorney serving Sacramento, CA
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Law Office of Victor Waid
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You should contact the attorney for the executor of the estate to see how you can contest the sale, and to get the new offer presented to the court. Sales of real property by executor require court approval and are subject to objection.
Answered on May 20th, 2013 at 12:06 PM
The administrator of the Will can not sell anything until they are appointed by the court to handle the estate and then can not sell any real property without notice to the Court and heirs. See the Nolo Press books on estates.
Answered on May 20th, 2013 at 12:06 PM
Estate Planning Attorney serving Torrance, CA
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The Law Office of Kelvin Green
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The heir should never be involved in this. The executor is there for an orderly proceeding. The heir makes this messy. The executor is required to the best for the estate not for the heir. Even if there is an offer at a higher amount it may not be the best for the estate. The executor is allowed to use judgment here
Answered on May 20th, 2013 at 12:05 PM
Under most state statutes, the executor has complete power to sell the assets at any reasonable price without prior approval of the heirs, unless the decedent's will states otherwise. However, if the executor fails to act responsibly to get a reasonable price on the property, the heirs may have a claim against him or her.
Answered on May 20th, 2013 at 12:05 PM
2 Awards
Generally not. If the executor entered into the contract in good faith and unaware of other heirs, there is a 3rd party (buyer) who would be harmed if the executor did not go through with the sale. As long as the executor is the court appointed representative and again acted in good faith, there will be no damages to the uninformed beneficiary.
Answered on May 20th, 2013 at 12:05 PM
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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Not likely. If there is a contract in place, there is not much that you can do. If there is a lawyer representing the PR, you can have the lawyer review the situation. The heirs normally do not need notice or consent of a sale of the property. It is unfortunate that this happened, but there may be little you can do about it.
Answered on May 20th, 2013 at 12:04 PM
Probate Attorney serving New Orleans, LA
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James G. Maguire
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It depends on whether or not the executor was designated as an "independent" executor in the will. If he was, then he can sell the property on his own terms, even if someone else comes up with a better offer. You can file an objection with the court, stating that the price at which the executor proposes to sell is too low. That would mean hiring an attorney to represent you, and paying fees and costs. That route would only be worth it if the price difference is big enough.
Answered on May 20th, 2013 at 12:03 PM
Business Law Attorney serving Livonia, MI
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Gerald A. Bagazinski
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It depends on they type of probate proceedings (formal v. informal) and whether there were any restrictions on the letter of authority issued by the court (ie. real property cannot be sold without approval of the court.)
Answered on May 20th, 2013 at 12:02 PM