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NSW Inheritance - Family Can't Agree on Sale of Property

Discussion in 'Wills and Estate Planning Law Forum' started by HeavyD, 18 June 2015.

  1. HeavyD

    HeavyD Member

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    I recently inherited a property ( inheritance) with my brother and sister which we now need to sell. The problem is my brother is completely unrealistic with his valuation of the property. If my sister and I agree on a sale price, but my brother does not what can we do?

    We can't afford the maintenance, rates, power bills any longer. My brother has not been inside the property for over 15 years so has no idea of the value. Our grandfather passed away August 2014 so we only have another 12 months before capital gains tax rears its expensive head.

    Any help appreciated.
     
  2. Tracy B

    Tracy B Well-Known Member

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    Hi HeavyD,

    Have you tried:

    1. Getting a number of valuations to persuade your brother than the price is within range?
    2. Ask your brother to purchase your sister and your shares if he wishes to hold on to the property?
    3. Otherwise, you can apply to court for a sale order. Which state is the property?
     
    HeavyD likes this.
  3. HeavyD

    HeavyD Member

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    We have had valuations from 4 real estates and the property is in NSW. Thank you so much for your answer.
     
  4. HeavyD

    HeavyD Member

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    Also, although he talks the talk about how much money he has, I don't think he will buy us out. Do we need to wait for an official offer on the property before we apply to the court and can we do this ourselves or do we need to go through a solicitor? I am assumimg unfortunately majority (my sister & I) does not rule.
     
  5. Tracy B

    Tracy B Well-Known Member

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    Hi HeavyD,

    An application for sale or partition (splitting up of the land) is made when a co-owner no longer wishes to own property with its fellow co-owners. You (and your sister) can make an application (for an order to sell or partition) to the Supreme Court. If sale is granted, the land is temporarily given to a trustee to sell and the proceeds split between the co-owners. The court will hear your reasons for sale, and consider whether there is any substantial prejudice to the brother unwilling to sell (unlikely in your case). It will offer your brother an opportunity to purchase the house first, if he desires this. However, if he does not, the court will likely order sale over partition. There is a presumption at law that the court will unshackle an unwilling co-owner from their co-ownership.

    Given the property is inherited, the executor could also sell the property before distributing the shares to the beneficiaries.
     
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  6. HeavyD

    HeavyD Member

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    Thank you very much for the advice.
     
    Tracy B likes this.

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