So much for the old joke about "no one would buy from him except his family."Apparently Toll Brothers (NYSE: TOL) can't even get co-founder and vice chairman Bruce E. Toll's daughter to close on the home she agreed to buy from the company.
In a related-party transactions disclosure in the company's most recent proxy statement, Toll told investors that "prior to fiscal 2007, the company entered into an agreement of sale to build and sell a condominium to Wendy Topkis, Bruce E. Toll's daughter, and her husband for a purchase price of $2,468,075. In January 2008, the buyers informed the company that they did not intend to make settlement on the condominium. The company intends to pursue its rights under the agreement of sale."
Will the company go after the vice-chairman's daughter in court? Now, that could lead to some interesting related-party transactions disclosures in future proxy statements.
According (subscription required) to the Wall Street Journal, the company's general counsel said that Toll would not treat Ms. Topkis any different than any other customer. She probably left the company with a sizable down payment to ease the pain, something in the neighborhood of 7%, but Toll can't be too excited about finding another buyer in this market.
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