QUESTION
New mortgage on inherited property
Asked on Oct 30th, 2013 on Estate Litigation - New Jersey
More details to this question:
I inherited property in New Jersey with two other siblings, one is Executrix. The Will states all property is given to three children "in equal parts". I offered to buyout their 2/3 share with my mortgage. My lender requires that Title be in my name, since it is in name of my deceased Mother. The Estate Attorney drafted a mortgage on the Estate naming the Executor,and other sibling as Lenders, in the amount of my buyout offer. I decided not to proceed with the buyout because siblings would not negotiate selling price or make concessions to repair property defects. I stated I would not sell my 1/3 share to outside buyers, and am waiting to negotiate. Executrix states she can sell without my approval or signature. My question is can this New Mortgage listing my two siblings as Lenders be used to sell without my signature. Husband of Executrix sibling states that he purchased the property. Doesn't the Probate Court have to approve of Sale, and I can make my purchase offer.
1 ANSWER
2 Awards
The Executor of the estate does have the right to sell the property and then equally divide the proceeds among the three beneficiaries. If you can negotiate a sale, you could buy out your siblings, but they do not have to accept less than they could have gotten if the property was sold on the open market. If the mortgage and the sale you tried to negotiate was not finalized, then the property can be sold. What you can do is challenge what the executor of the estate did by asking for an accounting and an appraisal of the property. If the executor agreed to sell, and sold the property for less than what you were offering, or less than fair market value, then you would be able to challenge the sale.
Answered on Nov 01st, 2013 at 3:21 PM
Diana L. Anderson, Certified Elder Law Attorney This response is not legal advice and does not establish any form of attorney/client relationship