In the state of Missouri, a seller in the middle of a sales contract died. The closing time is not yet lapsed and all the contingencies on the buyer side is fulfilled. There is will in place and an executor named for the estate already. The son (named executor) can not legally sign for the deceased seller yet. The buyer's do not want to continue with the contract and wait further and possibly go into probate. What is the fastest way to get the buyers out of the contract? Does the contract die with the sellers death? 9the seller obviously can not sign to close and would be in default) At what point does the seller default on this contract in this scenario? Also, there is earnest monies in place. Will the buyer's have to wait until the son can legally sign to release this contract and the earnest monies or how can we get the earnest money back fast without a signature, or does it have to go to arbitration? If it goes to arbitration, at what point in the state of missouri does the third party company have to return the earnest money back to buyer?

excon

Hello kim:

All very good questions. I'd love to know the answers. I suggest they're too specific for a detailed examination of your case without knowing the contents of your purchase agreement. Your rights, if any, should be spelled out there.

In any case, and no matter who has the law on their side, you're going to need an attorney on the ground to straighten it out. I would absolutely see one TODAY.

excon

kimsells4u

thanks so much for the response. i so appreciate it. i am very aware of possible consequences etc. for the buyer and seller within the specific contract terms, it's the mixed up stuff after the death of the seller that is concerning me. thanks again for the response. k

excon

Hello again, k:

Even if a lawyer had prepared the purchase and sales agreement, I don't know if the death of the seller would have been contemplated.

This could get messy, although who owes who, how much and why isn't difficult to ascertain. That doesn't mean it will get handled quickly. Hopefully, your lawyer can cut through the chaff, release you from your agreement, and get them to send a check.

excon

kimsells4u

Hey there,
Yes, that is exactly what I am hoping...
K

ScottGem

First, unless the contract specifically makes provision for the death of the seller, then the seller's estate is responsible for fulfilling or cancelling the contract. The executor of the estate, once affirmed, will have the right to continue and execute the contract.

So the only real question is how to get the executor affirmed. Usually this is done by the probate court. But if there is no desire to probate the estate (its not large enough), then, if the will assigns and executor, then they can assume their duties almost immediately. The executoir would sign any documents as:

John Smith
Executor; Estate of Fred Smith
as per Will dated xx/xx/xxxx

JudyKayTee

I'd be interested in whether the house is specifically mentioned in the Will - it might not be the Executor's to sell.

I looked quickly at the law in several States and found that if the executor will not execute the Deed and complete the transaction you need to file a specific performance lawsuit requiring the Executor to do so. I realize this is not what you asked - you as the purchaser would like to rescind - but it appears that both parties appear bound by the Contract as the executrix simply takes the place of the Seller.

I did not specifically find anything about Missouri. As I said, other States simply put the Executor as sort of a power of attorney over the deceased seller and the transaction goes forward - the Executor is not allowed to back out.

(I'm surprised; I would have "guessed" that the contract died with the seller and I would have been wrong.)

I would think, however, that if the Estate cannot meet the closing date, particularly if it's a "time is of the essence" contract, that would get you out of the contract.

What does your real estate broker say?

kimsells4u

the house is mentioned in the will. the executor, if he is not able to close by the closing date would be in default. that however, is a a long time away. waiting until that time is not fast. we have since found out that for sure the heirs have to go through the process of assigning the representative of the estate which and that may take 30 days or so at minimum, even to sign anything.

thanks for the response... can you think of another way for the buyers to get out without the executor signing and or before the executor becomes the assigned representative of the estate, for fast timing purposes?
K

kimsells4u

and of course how long it takes to get that executor affirmed... anyway, thanks for the comments and response!
K

JudyKayTee

The house is mentioned in the Will? I meant is there a specific beneficiary for the house? How is it mentioned?

Now, I can't think of any way for the buyers to get out - unless you have a "time is of the essence" clause.