Property sold between siblings with agreement of lifetime occupancy

[Newmanmv]

Hello I’m not quite sure this is where to post this but hopefully I’m in the right area. My husband sold our 5 acres to his sister this last year after we found out he terminal with cancer. The property is part of a 600 acre family farm and their parents has instructed that if one of their children decided to sell part of land that they must first offer to siblings. Which is what we did, my sister in law offered husband price he was asking No problem there, they also set up agreement to where he continues to live on land has complete control on how land is handled so on and so forth. It was more a hand written document that they both signed without witness or if I’m to understand no filing at court house. Now his son is talking to sister in law wants to buy part of that acreage from her. Now here’s my question we live in Arkansas but can she sell property or partial acreage with this agreement intact or will they have to wait til my husband passes to perform transaction. If she did sell part of the land she bought from husband does or can that bull and void the original living trust if you will between them or does that agreement carry over with whomever purchases it

 

[Zigner]

Hello I’m not quite sure this is where to post this but hopefully I’m in the right area. My husband sold our 5 acres to his sister this last year after we found out he terminal with cancer. The property is part of a 600 acre family farm and their parents has instructed that if one of their children decided to sell part of land that they must first offer to siblings. Which is what we did, my sister in law offered husband price he was asking No problem there, they also set up agreement to where he continues to live on land has complete control on how land is handled so on and so forth. It was more a hand written document that they both signed without witness or if I’m to understand no filing at court house. Now his son is talking to sister in law wants to buy part of that acreage from her. Now here’s my question we live in Arkansas but can she sell property or partial acreage with this agreement intact or will they have to wait til my husband passes to perform transaction. If she did sell part of the land she bought from husband does or can that bull and void the original living trust if you will between them or does that agreement carry over with whomever purchases it

There is no way that any of us could answer any questions about the title, ownership, etc., of the property. Your husband should take all his information to an attorney for review.

 

[zddoodah]

can she sell property or partial acreage with this agreement intact or will they have to wait til my husband passes to perform transaction.

Aside from the fact that I can't really tell what the antecedent is of any of these pronouns, this question is unanswerable by anyone who hasn't reviewed the relevant agreements, deeds, etc.

If she did sell part of the land she bought from husband does or can that bull and void the original living trust if you will between them

Huh? What does "the original living trust if you will" mean?

Bottom line: I'm not sure that the potential transactions between people who are not you or your husband are legally any of your concern, but if you want informed information about the current state of affairs, you'll need to take the relevant documents to a local attorney for review and advice.

 

[LdiJ]

Hello I’m not quite sure this is where to post this but hopefully I’m in the right area. My husband sold our 5 acres to his sister this last year after we found out he terminal with cancer. The property is part of a 600 acre family farm and their parents has instructed that if one of their children decided to sell part of land that they must first offer to siblings. Which is what we did, my sister in law offered husband price he was asking No problem there, they also set up agreement to where he continues to live on land has complete control on how land is handled so on and so forth. It was more a hand written document that they both signed without witness or if I’m to understand no filing at court house. Now his son is talking to sister in law wants to buy part of that acreage from her. Now here’s my question we live in Arkansas but can she sell property or partial acreage with this agreement intact or will they have to wait til my husband passes to perform transaction. If she did sell part of the land she bought from husband does or can that bull and void the original living trust if you will between them or does that agreement carry over with whomever purchases it

Ok, what happened is that she bought the land subject to a life estate for your husband. That means that he can manage the land until such time as he passes away. There is nothing stopping his sister from selling part of her interest in the land. However if she has not registered the deed that will get complicated. I would advise his son to hire an attorney (or a title company if appropriate in your state) to make sure that all of the deed are properly recorded so that the ownership is clear.

 

[Newmanmv]

Ok, what happened is that she bought the land subject to a life estate for your husband. That means that he can manage the land until such time as he passes away. There is nothing stopping his sister from selling part of her interest in the land. However if she has not registered the deed that will get complicated. I would advise his son to hire an attorney (or a title company if appropriate in your state) to make sure that all of the deed are properly recorded so that the ownership is clear.

Thank you for your response. I kinda figure that they will iron out I’m was just trying to find a straight up answer for husband who kinda worry that the original agreement would be null and void with sale between his son and sister. As far as I know no paperwork has actually been filed I believe she is holding signed deed for safe keeping for time being. Either way thank you kindly for your time.

Ok, what happened is that she bought the land subject to a life estate for your husband. That means that he can manage the land until such time as he passes away. There is nothing stopping his sister from selling part of her interest in the land. However if she has not registered the deed that will get complicated. I would advise his son to hire an attorney (or a title company if appropriate in your state) to make sure that all of the deed are properly recorded so that the ownership is clear.

thank you LDiJ I appreciate your response. Yes, the main issue is that there is possible sale of land between her and his son. Which we have no issue with, it’s just whether the original life estate agreement would rollover and be included with the new sale or would there have to be a new agreement drawn up between my husband and his son. I am simply trying to find answer to his questions to ease his mind. But I understand I will try to look it up on the Arkansas sight. Thank you sharing for sharing your input.

 

[Zigner]

... I will try to look it up on the Arkansas sight.

To what end? Your hubby NEEDS an attorney to make sure this is done correctly.

 

[Litigator22]

Hello I’m not quite sure this is where to post this but hopefully I’m in the right area. My husband sold our 5 acres to his sister this last year after we found out he terminal with cancer. The property is part of a 600 acre family farm and their parents has instructed that if one of their children decided to sell part of land that they must first offer to siblings. Which is what we did, my sister in law offered husband price he was asking No problem there, they also set up agreement to where he continues to live on land has complete control on how land is handled so on and so forth. It was more a hand written document that they both signed without witness or if I’m to understand no filing at court house. Now his son is talking to sister in law wants to buy part of that acreage from her. Now here’s my question we live in Arkansas but can she sell property or partial acreage with this agreement intact or will they have to wait til my husband passes to perform transaction. If she did sell part of the land she bought from husband does or can that bull and void the original living trust (?) if you will between them or does that agreement carry over with whomever purchases it.

Sorry to learn of your husband's health issues

Turning to your questions we need to begin by disposing of this suggestion of yours of the presence of some sort of a "living trust" existing between your husband and his sister. I'm going to assume that where you mention it you are simply referring to the unrecorded ''hand written document that both signed". A writing I gather was for the sole purpose of providing a means of selling sister the 5-acres tract and reserving unto him a life estate. And that nothing has been entrusted to either or to any other person or entity for the benefit of either; and neither are bound by any trust document.

Proceeding on that premise then the answers to your questions obviously rest with the validity or efficacy of the hand written document. Did or does it serve to accomplish the desired effect?

If the document can legally suffice for the purpose for which it was created, then sister and her heirs and successors are free to sell the whole or any portion of the acreage, provided however, that any such sale occurring during the life of your husband would be subject to and preserve the life estate. Moreover, no such sale or attempt to sell would in any way, per se, void the terms of the hand written document. As you suggest the life estate would carry over binding whomsoever should purchase the property.

What can't be solved here has to do with the consequence or the effect of the hand written agreement. What you wish to do with respect to the issue of its validity depends upon your intentions and that of your husband. If you wish to challenge the document as a legal vehicle adequately transferring legal title to the acreage (and thus void the transaction), then you must consult with a local attorney versed in real property law. Bearing in mind that the result could require reimbursing sister with what she paid.

If you do not desire to disturb the status quo, then it would be best and certainly behoove the interest of sister that you have an attorney prepare and have your husband executed and deliver to sister a "beneficiary deed". Which is a deed that conveys an ownership interest in real property, but does not take effect until the death of the owner. (See: Arkansas Code Section 18-12-608) https://codes.findlaw.com/ar/title-18-property/ar-code-sect-18-12-608.html (Whether you as spouse would need to join in that conveyance is something to be left to the attorney. Here it would be required.)

What perplexes me is your seeming indifference to the imminent likelihood that you will be displaced from what I assume is the family home. Would you care to comment?.