Buying my Dad's house?

Question

Here is what we want to happen: We live in MN and my dad wants to transfer the house to me and have my name on the house deed and I will take over the payment and he will be still be living in the house. He is disabled and is not working.

We need to know how to make this happen as far as how to do this, who we need to talk to. Do I buy it from him? Just do a deed transfer? What type of deed? What are the tax complications for him and me?

Answer 1

He could sell it to you for 1 dollar and avoid any taxes. You may want to talk with a lawyer and an accountant to be sure.

Answer 2

If there is a mortgage on the property and he wants completely out than do an interfamily transfer refinance. Tax assessments on the house will not change (most of the time) check with your county recorder office.
Ok tricky part..most Loan officers/Brokers dont know how to do this so make sure you ask if they have ever done a interfamily transfer. Also make sure that the Lender they are dealing with has done one as well. Its a very simple process but people "F" this up and make it more complicated for some reason. If you father wants to still carry the note than go down to the tax assessors office and you can file there.

I would give you the assessors link but you didnt state what county you lived in.

Answer 3

Your dad should not sell the house to you nor place your name on the deed. He should make himself a living trust, putting you in charge of the trust. In the trust he should indicate that as long as he is alive he will be allowed to live in the house.

The trust should indicate who he want to leave the house to in the event he dies or how it should be divided. If he want to leave the house to you, it will happen automatically and you avoid probate this way saving probate attorney and court cost for the probate.

This will eliminate an legal problems if he want to do something with the property and your name is on the deed, but you don't want to do the same thing. He is still in control of his own property.

You will need to contact an attorney to complete a living trust. One thing you want to insure is that the attorney you select also fund the trust. Your dad can add bank accounts to the trust if he so desire or other items he deem valuable and who he want to leave the items to. You can get a kit and do it yourself if you are in the mind to. It cost anywhere from $250.00 to about $450.00 to have an attorney do it. Most estate attorneys advertise in your local paper that they do living trust. You might also check that if you don't have an attorney.

In my opinion this is the best possible way for you and you father to handle this. There might also be some tax advantages in doing it this way, please check with your tax advisor for any and all tax advice. Buying the house from your dad, there could be some negative tax advantages that don't work in your favor while your father is still alive that you can get upon his death. Nothing against pops and I hope he lives a long long life.

Now how you work out the payments would be up to you guys.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 4

First, I assume that the reason youR father is wanting to let you take over the mortgage is because you could not qualify to obtain a loan by yourself, otherwise you would just buy the house and he would get his equity out of the sale and you could let him live there if you wanted.

Therefore, if this is the case, here is what he should do.
He can put you on the deed as a joint tenant with right of survivorship. This is called a joint tenancy deed. To do this,a simple joint tenancy deed form is needed. ( find one on line or at stationary store). Using the form, he will then will grant title to himself and to you as joint tenants with right of survivorship. In other words he does not grant title to you alone but to himself and to you, but as joint tenants.

This does several things that are important.

First, as long as he is still on the deed, as an owner, the mortgage company will not "call" the loan i.e., require a new loan or refinancing. You can then make the payments directly to the loan company because, as long as you father's name is still on the deed, they do not care if you are also on the deed or that the payment is coming from you,

Secondly, upon your father's death the house is yours (that is what right of survivorship means).

But thirdly, and probably very important for your father, is the fact that he is still an owner and is entitled, as a matter of law, to continue living in the house so long as he is on title. In other words, the fact that you are making the payments will not give you the right to evict him. I know from the tone of your letter that that is not your plan and that you would not do that, but it has happened, and your father, as a disabled person, needs to have the certainty that he will be able to continue to live there even if the two of you had a disagreement or if you died. The deed needs to be recorded notarized and recorded at your county recorder.

One final thing: if you die while holding title as a joint tenant your father would then become the sole owner again. Therefore he needs to have a will so that when he dies he can leave the house to who ever he wants to have it. The two of you can talk that over and he can make his will the way the two of you decide but he will always be able to change his will if he choses. Once he puts you on title as a joint tenant, however, he can not take you off title as half owner without your consent, nor can you take him of title either without his consent.

There are no tax consequences of this type of transaction but you need to check with your county assessor's office to see if your state and county have any additional forms that need to be filled out to maintain certain exemptions that some states have regarding the assessment and taxation of real property. In California there are such forms and other states may have them also.

Answer 5

Well as another suggestion, you might try a sales contract where the father gets a life interest, the son gets title to the property. Any lawyer can do it.

The loan is a different issue. As long as he'd comfortable with you just making the payments, there is no need to refinance. If he's not, you're going to need to refinance to get his name off the loan.

Answer 6

First, obtain a real estate attorney. Not just an attorney, you want someone who handles real estate properties sales, etc. It sounds as though you have a complex situation (mortgage), which could be problematic. I'm a realtor and it's my best advise for your situation. Good Luck!

Answer 7

Get a lawyer to avoid big problems like a bargain sale issue.

Answer 8

Quick Claim Deed ,and then after it is in your name Homestead it