Question to the Ministry of Justice:

To ask the Secretary of State for Justice, what plans he has to bring forward legislative proposals to (a) resolve conflicts which arise between contract and probate law when the nominated completion date for sale of a property postdates the vendor's death but precedes probate being granted to their beneficiaries and (b) provide for affected contracts to be automatically extended or nullified on the death of the vendor.

There are no current plans to bring forward legislation as these cases are exceptional, and the existing law provides for the means of resolving disputes arising in such circumstances. Nevertheless, the Government will keep this area of law under review and would welcome any examples of problems that have arisen.

Generally, where one of the contracting parties to the sale of a property dies before the completion of the sale, their legal responsibilities transfer to their personal representatives. They are able to enter into discussions with the other party to vary the contract (for example extend it) by mutual agreement.

If no such agreement can be reached, the Probate Registry can operate an emergency system to expedite the Grant of Probate or for a limited Grant of Probate to be issued. This may be used to enable the sale of the property to take place with minimum delay.

If probate is unlikely to be granted before a fixed completion date, the personal representatives may agree to allow the buyer into the property on licence pending formal completion.

In addition, Section 113 of the Senior Courts Act 1981 empowers a court to grant probate or administration in respect of any part of a deceased person’s estate, limited as a court feels is appropriate to the circumstances of the case.