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Public Trust - Sale of Real Estate to Trustee's Child

K
Kim@spadylaw.com
Tue, Jan 25, 2022 10:29 PM

Public trust holds real estate that is platted and lots are offered for sale
to the general public.  Can a trustee’s child purchase one of the lots?

I was certain that the rule was clear that the child cannot enter into a
contract with the trust while parent is a trustee.

I’m not finding that provision today, though.  Now I’m thinking I must’ve
been thinking of Const. Art. 10, § 11, which would prohibit the trustee from
purchasing from the trust but doesn’t extend to the trustee’s child.

If that’s the case, so long as the contract is secured by competitive
bidding following a public invitation to bid (60 O.S. § 178.8(A)), the
transaction is permissible. Right?

I would appreciate your confirming this is correct or reminding me of the
prohibition that is escaping me this afternoon.

Thank you,

Kim Spady

Public trust holds real estate that is platted and lots are offered for sale to the general public. Can a trustee’s child purchase one of the lots? I was certain that the rule was clear that the child cannot enter into a contract with the trust while parent is a trustee. I’m not finding that provision today, though. Now I’m thinking I must’ve been thinking of Const. Art. 10, § 11, which would prohibit the trustee from purchasing from the trust but doesn’t extend to the trustee’s child. If that’s the case, so long as the contract is secured by competitive bidding following a public invitation to bid (60 O.S. § 178.8(A)), the transaction is permissible. Right? I would appreciate your confirming this is correct or reminding me of the prohibition that is escaping me this afternoon. Thank you, Kim Spady