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Owner Financing (family)?

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StartingOver10
Moderator Emerita

Re: Owner Financing (family)?


@masscredit wrote:

Whichever way this goes, I hope that it is handled correctly.  I'm doing research to see if there is any way that I can purchase the home. On my aunt's side, I know that her plan is the sell it and then divide the money after all of the expenses have been taken care of. 


This is why you want a CPA and an attorney involved right away so this is taken care of properly. It is a good idea to research and learn; however, it is best to leave the entire process in the hands of a professional or two. Let them do their jobs. The purchase may sound easy from your side, but you don't know what you don't know. Hiring a professional to do the job allows you to handle the purchase without getting mired in the details.  

 

I have been an agent for a buyer where the seller was an estate and there were 6 grown 'kids' getting the proceeds. It happened, but not without an excellent real estate attorney. It didn't take long either. From contract to closing was 6 weeks and that was only due to a delay with all the sellers having to sign off (the six adult children). 

 

One of the posters above nailed it when s/he said you don't know if the prior transfer was done right nor what has happened in the intervening 20 years. This is the time to make sure that it is handled correctly. The right real estate attorney will keep you posted each step of the way too.

Message 21 of 23
masscredit
Valued Contributor

Re: Owner Financing (family)?

My aunt and the 5 other members are scattered over 3 states. I know my aunt will probably research things on her end. Should each of us speak with a CPA to see what will work best for each of us seperately and as a whole? As far as I know, she's just planning on selling the house then spitting the money. I don't know if she knows all of the details that should be considered. That is if I don't end up buying the house. 

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Message 22 of 23
coterotie
Established Contributor

Re: Owner Financing (family)?

I am going to point out that it really doesn't matter whether you buy the house or someone else, the issues are pretty much the same.

 

  1. Your aunt needs to be able to deliver clear title
  2. The income fromt the sale will be reported to the appropriate taxing authorities
  3. Whoever receives the proceeds will have to report those proceeds on their taxes
  4. A new person will own the property.

@masscredit wrote:

My aunt and the 5 other members are scattered over 3 states. I know my aunt will probably research things on her end. Should each of us speak with a CPA to see what will work best for each of us seperately and as a whole? As far as I know, she's just planning on selling the house then spitting the money. I don't know if she knows all of the details that should be considered. That is if I don't end up buying the house. 


 

Message 23 of 23
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