Legal Question in Wills and Trusts in New Jersey

Re: Can an Executor sell property in a will through a family member in real esta

A lawyer should not hire a spouse as a broker, especially where the lawyer represents an estate as the executor. It is a clear conflict of interest as the interests of the broker (usually to sell the house ASAP) may be in conflict with the interests of the beneficiaries. The lawyer/executor's judgment may also be 'clouded' by the fact that his spouse will be earning a commision on the sale...(e.g. did the lawyer/executor try to negotiate a commission below the typical 6%?...many brokers will take 5% or less).

Re: Can an Executor sell property in a will through a family member in real esta

The Executor has broad authority to buy or sell property. However he has to act in the best interest of the Estate and the Heirs. He has a fiduicuary duty toward the heirs. There may be a problem if he is selling property below market value or below what can be received from other, higher offers.

Re: Can an Executor sell property in a will through a family member in real esta

I concur with Mike and Jon, that the attorney/executor has a fiduciary duty to the estate to maximize the estate and at the least cost. There is no question that his activities are possibly violative of his responsibilities. If you are entitled to a share of the estate, you have a right to question the sale and hold the executor to his responsibilities. You will need proof that he acted improperly. You should get written statements from any broker who had a legitimate customer and the terms of any offers that were denied or rejected. The same goes for any commission arrangements that other brokers offered (such as reduced commissions). You may have a claim to surcharge the executor for any losses or excess expenses. Be mindful that this claim must be litigated and that costs can be high, although they might be recovered if your claim is approved by the Court. I suggest you review this entire situation with a good estate attorney to see if your possible claim can be supported.

Re: Can an Executor sell property in a will through a family member in real esta

If your suspicions are correct, the attorney/executor may have committed breach of fiduciary duty and fraud, as well as other legal wrongs, and could be both sued as well as disbarred from the practice of law. The realtor, the attorney's wife, could also be sued and have her license to sell real estate revoked.

If the offenses are serious enough, they may be deemed subject to criminal prosecution as well, if they are deemed to constitute theft or conversion (i.e. in effect, your lost profits are being put in their pockets), or perhaps criminal fraud.

The conduct you describe is very serious and must be dealt with at once. Please contact me if you wish to discuss retaining my services, see below, or at 973-605-8995.