Whether they buy it or it was inherited or a gift, is it possible for a minor to own a house? Does it matter if they are emancipated or not? I've always been curious about this.
2006-11-30 13:55:11 · 8 answers · asked by Nick V 2 in Business & Finance ➔ Renting & Real Estate
I'm aware that minors can't enter into contracts, but if you are emancipated you can. Also, if it is a gift or inheritance, or if bought outright...then there is no contract.
2006-11-30 13:59:57 · update #1
They can if they're emancipated but they can't otherwise. You have to sign certain contracts to assume ownership of a home even if you're not paying a mortgage, and a minor can't legally enter into any contract. But the home can be owned by a trust with the child as the sole beneficiary of the trust. If you want to do that, you'll have to have a lawyer and a tax lawyer help you.
2006-11-30 13:59:27 · answer #1 · answered by dcgirl 7 · 1⤊ 0⤋
Wow! That's a good question. I know that a minor cannot enter into a purchase agreement to buy a house. A minor cannot enter into a contract. The only way that I can think that a minor might be able to own a house would be if it were set up in a trust with an adult as the administrator until the minor turned 18. You would want to do it this way because if it were titled in the minor's name alone, then the minor would not be able to sell it because, again, he could not legally enter into a contract to sell the house.
Are there any lawyers out there who can help with this answer? I'd be interested in knowing if I'm on target with this one or not.
2006-11-30 14:06:15 · answer #2 · answered by Realtor Jim 2 · 1⤊ 0⤋
No, a minor cannot own real property. If they inherited it, or it was a gift, it would be placed in a trust until they became an adult.
If they were emancipated, I believe they could.
The key is that a minor cannot sign a valid contract. They can sign one but can't be held to its enforcement, so you're taking a big risk in selling contracted goods to a minor, such as a car, time payments or real property (house or land).
2006-11-30 14:00:49 · answer #3 · answered by Aggie80 5 · 1⤊ 0⤋
I see two ways. Your mother could purchase the house for cash and gift it to you. However, your mother would have to pay gift tax on the value of the property that exceeds the $13,000 exemption for the year the gift was made. If your mother is married, her spouse, whether he is your father or not, can also get a $13,000 exemption as long as they buy the house in both names and gift it to you jointly. They would need to find out how much of a gift tax hit there will be. If your mother needs to take out a loan, she can neither gift the house to you nor transfer the deed while there is a lien against the property. This is a big NO to lenders. HOWEVER - and this is important. You may be the owner of the house. But until you can legally enter into contracts, no legitimate contractor will deal with you for needed repairs, replacements, add-ons, anything. Not even landscaping and snow removal. You would have to go cash-only, under the table to fly-by-night contractors. That's not smart. The other way requires a trust be set up for you. The trustee can enter into any contract on your behalf. You are the owner in name only; the trust manages it until the time, under its terms, it distributes assets to your full control. This generally requires substantial assets in the first place. You would not be able to buy a house if a loan was needed. While the trustee would be allowed to sign loan documents, no bank will lend to a trust without that trust's demonstrated ability to repay the loan. Trusts don't hold jobs. Their only income is produced by assets in the trust, like a ton of cash, stocks, bonds etc. It's a very complicated thing. But if you have a lot of money and other assets at age 16, a trust is a good idea anyway.
2016-05-23 06:40:39 · answer #4 · answered by ? 4 · 0⤊ 0⤋
You cannot legally own real estate, in most states, unless you are of legal age. The reason is that you are not old enough to enter into a legal contract. I doubt whether it make a difference if you have been emancipated or not. When you are emancipated, it only means that you are responsible for yourself. It doesn't mean that you are of legal age to enter into a contract.
2006-11-30 14:01:01 · answer #5 · answered by Flyby 6 · 0⤊ 0⤋
No.....minors can not enter into legally binding contracts.
2006-11-30 13:58:44 · answer #6 · answered by Best DJ 4 · 0⤊ 0⤋
Well, I can tell you, you cant apply for a loan. You must be at least 18 to apply for a home loan. That I KNOW!
2006-11-30 16:14:14 · answer #7 · answered by ALEGNA 3 · 0⤊ 0⤋
yes but u mut have a co signer who will promise to pay if you do not
2006-11-30 15:39:41 · answer #8 · answered by ekleinert 3 · 0⤊ 0⤋