[ky] We Were Supposed To Close On A House, But An Heir Filed A Lawsuit The Day Before Closing. What Rights Do We Have As Buyers?

My wife and I have been under contract to purchase a home in Kentucky since late August. We’ve completed the inspections, secured financing, received an appraisal, and were scheduled to close in early November.

The property has a complicated ownership history. The previous husband and wife both passed away, and the grandfather was also reportedly listed on the deed. We understand that the grandfather helped finance the home’s construction and is currently involved in administering the estate.

The grandfather wants to sell us the property, and a probate court issued an order approving our purchase. However, the order included a 30-day period during which an interested party could challenge the sale.
One of the deceased owners’ adult children filed a lawsuit within that period, literally the day before our scheduled closing.

The lawsuit argues that the property is being sold for less than its value and challenges the estate administrator’s handling of the sale.

Here’s what makes this frustrating:
We have a signed purchase agreement for approximately $670,000.

Our lender’s independent appraisal came back at approximately $679,000.

The heir is relying on a real estate agent’s comparative market analysis estimating a substantially higher value.
The seller still wants to complete the sale.

A court had already approved the transaction, subject to the challenge period.

My wife and I were named as defendants in the lawsuit, even though we’re simply the buyers.

Neither of us has been formally served yet.

We genuinely want this house and would prefer to complete the purchase rather than walk away. We’re currently looking for a Kentucky attorney experienced in real estate and probate litigation.

My questions:
As buyers with a signed contract, what rights might we have when an heir challenges a court-approved estate sale?
Can the buyers’ independent appraisal help establish that the purchase price is reasonable?
Is it possible to request an expedited hearing so the purchase isn’t delayed for months?
If the grandfather was also named on the original deed, could that affect the heir’s ability to challenge the sale?
Has anyone experienced a similar situation where the buyers ultimately got to close?

I understand Reddit isn’t a substitute for an attorney. We’re seeking representation, but I’d appreciate hearing from anyone familiar with Kentucky real estate or probate litigation, particularly people who have experienced something similar.

location: Kentucky, USA.