Purchasing a property from a deceased estate is often fraught with problems. The question before the panel this week relates to a transfer that appears to have hit a dead end.
Some time ago, a reader signed an offer to purchase on a property that formed part of a deceased estate. The previous owner had passed away two years before and the deceased’s sister appeared to be dealing with the property.
The reader explains that the sister was in fact the beneficiary of the property, but decided to sell it out of the estate.
Although the reader understands that this transaction may be slightly different from a normal property transfer, she feels there are certain aspects that are cause for concern.
Firstly, she asks whether she is entitled to a copy of the offer to purchase.
Secondly, the reader would like to know what her daughter’s legal position would be should anything happen to her before the transfer is completed.
According to her, she has already paid the full purchase price and all related costs to the transferring attorney.
Lastly, the reader questions whether the attorney is allowed to “hold back double his fee and that of the agent”.
Rian du Toit from DTS Attorneys in Port Elizabeth says a purchaser is most certainly entitled to a copy of the offer to purchase. “The agent or transferring attorney should be in possession of the documents.”
The purchaser is, after all, a party to the agreement, says Du Toit, and there is nothing untoward about supplying him or her with the relevant document.
“Without more detailed information regarding the transaction, it’s difficult to determine why the transfer has taken such a long time to be finalised.”
Regardless of the circumstances, Du Toit says an offer to purchase has been signed and presumably accepted, because a conveyancer was appointed and the purchase price paid.
If anything were to happen to the reader, and assuming that the sale agreement was final and binding at the time, Du Toit says the executor of her estate would be obliged to complete the transaction and take transfer.
Typically, the property would form one of the assets in the deceased estate of the reader and her heirs would eventually become owners of the property, says Charlotte Vermaak from Chas Everitt in PE.
“If her daughter is her only heir, she will become the sole owner.”
Vermaak says the final matter of the monies being held back by the attorney does seem strange.
“If the purchaser has paid the transfer costs and agent’s commission, there seems to be no logical explanation for the attorney wanting to secure further funds.”
According to Vermaak, the purchaser is entitled to a statement of account regarding the monies paid by her and any unorthodox actions by the transferring attorney should be questioned.
“It may be wise to address formal correspondence to the firm concerned, requesting a full explanation for the transaction and the appropriation of funds.”
