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tdlawyer
tdlawyer, Lawyer
Category: Law
Satisfied Customers: 1096
Experience:  11 years experience of general practice.
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Hi there, I am need some legal advice on a property I bought

Resolved Question:

Hi there, I am need some legal advice on a property I bought with my brother but he has since gone bankrupt. I agreed to sell the property as i could not purchase my brothers share, but I have been given some poor advice and I am now in a situation where the trustee wishes to accept the first offer we have received which is over 50k lower than marketed price and 150k lower than the estate agents initial valuation.
I need to know what my rights are and I am confused due to misinformation I have been given.
Submitted: 2 years ago.
Category: Law
Expert:  tdlawyer replied 2 years ago.
tdlawyer :

Hi thanks for your question. My name is***** can help answer your question.

tdlawyer :

How long ago was the bankruptcy order made?

Customer:

For the sale of the house 21st October of this year.

Customer:

My brother filed for bankruptcy 2 years ago I believe. Without discussing it with myself first.

tdlawyer :

Okay, and I guess the Trustee is seeking an Order for sale of the property to release his interest in it, is this correct?

Customer:

yes that is correct.

tdlawyer :

OKay. After a year from the bankruptcy order, this becomes easier for them to do, unless you can buy out your brother's interest.

tdlawyer :

As for the right valuation.

tdlawyer :

The trustee obviously needs to make reasonable efforts to get the highest sum possible.

Customer:

We have had an offer on the property for 700k, its now on at 750k ad the trustee's solicitor says they wish to accept

Customer:

they simply say to me it is their right of refusal not mine.

tdlawyer :

Do they have a Court order already?

Customer:

Its only been on the market 6 weeks and over christmas. The buyer is clearly a developer and an opportunist as he has been made aware of the need for a 'quick sale'

Customer:

I have an order of sale

Customer:

if confidential i can attach?

tdlawyer :

This site is not confidential.

Customer:

thanks for the warning.

tdlawyer :

Did the Court set a reserve on the sale price?

Customer:

yes. this is 25k lower than we have been offered.

tdlawyer :

Okay, so that doesn't help to have such a low reserve. Then you have to fall back on the line of "You can reasonably do better". Whether you can, if fact dependant, of course. You could, if you wished, make an application to the Court for an increased reserve, but to do that, you're going to have to show that it's reasonable for the Court to adjust it upwards to protect against an overly keen Trustee. You'd have to show evidence of previous offers at higher figures, and that there is a reaosnable prospect of securing a sale at that higher price.

Customer:

Thank you. This is however the highest offer to date, so without evidence will the court listen to us? Could evidence/comment from our estate agent be proof enough for this?

tdlawyer :

It's difficult at 6 weeks, it's a fairly short space of time, but I would have said 12 weeks is more than enough to get a good feel. You're in a difficult position. Unless you can get an estate agent to say "It's easily worth more than ...." and a "minimum of ....." then you might not get the Court to increase the reserve. The Court would have considered valuation evidence presumably when it set the initial reserve too.

tdlawyer :

From what you're telling me, you might find it difficult to avoid the sale as per the offered price of £700k.

Customer:

and I assume what they are saying about it being there decision is entirely true and unless i go to court I have no rights to contest unless I can buy out my brother's share

tdlawyer :

Depends what the Court order says ... normally, you should all agree, and if not possible, the Court can order the sale to proceed at the offered amount.

tdlawyer :

Do you have the Order and you want to ask me about it, or does this answer your question?

Customer:
Not really but Im not prepared to send the order over if its not confidential. Thanks anyway.
tdlawyer :

No, I understand that and appreciate it.

tdlawyer :

Okay, can I ask if you're happy with my service this afternoon for you please?

tdlawyer :

Are you there still?

Customer:

Well I appreciate you've tried to assist, but I am none the wiser and still going to have to seek further legal advice.

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