QLD Death during property transfer.

[Donmac]

Quirky question came up during a discussion the other night. Hope this is the right forum.

A person signs a contract to sell a property. One week before settlement that person dies. Does the executor have to complete the sale, or does the property now become part of the estate to be processed? Ditto, if the person is buying not selling. No need to complicate these scenarios with a mortgage.

 

[Tim W]

For Queensland, have a read of this.

@Rob Legat - SBPL practices mostly in Queensland,
and may also provide some insight.

 

[Rob Legat - SBPL]

This exact scenario happened late last year. A client signed a contract, it went unconditional, and he passed away. We had to seek an extension of the settlement date, and get the property transferred.

In Queensland, you can get the property transferred to the personal representatives without obtaining Probate - but you must deposit the will with the Titles Office together with a death certificate. I then had it uplifted form the Registrar and sent directly to the Supreme Court so we could obtain Probate. The contract was settled in the meantime and the net proceeds held in trust pending distribution of the estate.

From the buyer’s point of view, time is of the essence in Queensland so they could terminate the contract for failure to settle in the completion date if they wanted to and assuming the property isn’t registered to the personal representatives in time. We managed to just sneak in with a great deal of luck, but our buyer was keen t proceed anyway.

 

[Donmac]

Thanks for your response Rob.

Not the expected outcome most of us thought. Another example of how complex the law can be and why we need lawyers.

 

[Rob Legat - SBPL]

It's an unusual case. In the 20 something years I've been engaged in legal work, it was the first time I (or any of my colleagues I spoke to) had heard of it happening.