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Buying a house from family estate.

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  • Buying a house from family estate.

    My sister has agreed to buy the family home (parents deceased) at an agreed sum, very close to the market price. An account for the estates assets has been opened and Administrators granted probate BTW.

    Firstly, does she have to pay the 'estate' the FULL sum? Or can she just pay the full sum, minus her share?

    Also, she has already loaned money to some of the family members. Can she legally pay the estate the agreed sum, minus what she has already paid others? And then have the estate pay out the owed amounts to each family member.

    Finally, if she has to pay the estate the full agreed sum, do the administrators have to pay each family member an equal share? Or can they pay each member their share, minus what she has already lent them? (I ask this as she is, unfortunately, unsure if some family members will pay her back!)

    She will, of course, be seeing a solicitor about this. But said the local solicitor she spoke to over the phone was unsure about what was the legal requirement.

    Thanks for your help

  • #2
    Re: Buying a house from family estate.

    I think your sister's best bet is to talk to the administrators/executors about whether she could pay the agreed sum for the house less her "share". It's not uncommon to do it this way and the administrators might agree.

    In terms of the loans to family members, it depends, I think, on the purpose of the loans. If the money was needed to pay costs directly associated with the estate (such as care home costs, funeral costs, utility or council tax bills relating to the family home, etc), then your sister could ask the administrators to settle these directly from the estate. She would have to provide documentary proof, of course. However, if the loans were not at all related to the estate, then I think that this would be regarded as a private matter between your sister and the family members in question.

    Hope this helps and hope that the estate is settled smoothly and painlessly.

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    • #3
      Re: Buying a house from family estate.

      Thanks Jeannie D.

      That sounds like some good news for her. Especially as the rates for short-term/bridging loans look a bit steep - so this should ease her burden.

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