I have not been able to sell my home in Michigan due to job losses. I need to know who would handle all the details since we are not using real estate agents.
2007-03-03 15:14:00 · 5 answers · asked by lilacpearls 1 in Business & Finance ➔ Renting & Real Estate
Purchase Agreement,
Insist she take out insurance and maintain it like she is the owner.
If she does not follow through with it it goes back to you.
If she makes repairs they have to be approved first, while technically she is the owner you have a right to make sure something isn't torn down.
2007-03-03 15:23:56 · answer #1 · answered by Carlene W 5 · 0⤊ 0⤋
No No No. First, you are not going to do a lease option. That is old school. A lease option gives anyone an equitable interest into the property. This means, you would have to foreclose on the person in the property, instead of evict. You want to do a Contract for Option with her, and a lease. The lease is a regular rental agreement. The contract for option is, if she does x, y, and z (maintain ontime payments, pay the tax, insurance, dont rip up the place and dont sell crack out of it, and much more) then she has the right to get an option and expercise it on such and such date. Most likely she will hae a problem. Lets face it, sis got low credit scores for a reason, and if she is working to get it back up, good for her, she is one of the 10% or 20% who will actually come through. Be prepared for it to not work out.
My thoughts~~and not legal advice
form a duel member LLC,
have the members of the LLC as trusts
*you can be the beneficiary of the trust, and say your husband*
Tell your sister the LLC is going to buy the house, but they agree to selling it to her at the same terms and conditions.
They will lease her the house
They will do a contract with her, if she fulfills the contract, she has the option to buy the house.
Then set up a bank account for the LLC, and dont let your sister find this out.
She makes the payments to the LLC.
You can do all the work and such for the LLC, but tell her once it is over, basically you are out. Then get a property manager, and have them be the person who she deals with if there are problems.
She will ahve a harder time NOT paying someone else then NOT paying you.
And the LLC will have an easier time kicking her out if it needs to then you would. Cause you love sis and yo know why she is having a hard time, so youj will give her millions of chances and let your credit die in the mean time.
Take care of sis
Take care of you
***If you want to be open with sis, still do a contract for option. Then if you must kick sis out, you only do an eviction, a lease option may make you go to court and foreclose her interest out.
Check out wendy patton, she has good material on this.
Good Luck
2007-03-03 15:40:04 · answer #2 · answered by batwanda 4 · 1⤊ 1⤋
First and foremost, before you go any further just know that family will fallout over money and property quicker than the word "go". So just make a pact now with your sister in writing that no matter what happens that you will not lose communication and sisterly love for each even if one gets mad at the other for whatever reason and also this pact should include the sister will pay her rent in a timely manner even if she feels she doesnt have the money. You never know what may happen.
Remember business is always business when it has to do with your money, dont ever forget it, even if it is family. So give your sister a big loving hug now!
Secondly, do your research, consult with a real estate attorney real estate management company or even a realtor. You will learn more this way about their legal system for real estate. since each state is different, it's better do check with your state real estate law before you move. Good luck!
okay again, give your sister a big hug for buying your home!
2007-03-03 15:38:14 · answer #3 · answered by Anonymous · 0⤊ 0⤋
batwanda gave you excellent advice. Have two contracts, one a regular lease and another for a purchase option.
The idea of using a trust and a LLC to hold the trust is also a great way to transfer the loan and the benefits of the loan to your sister without the lender enforcing the due on sale clause. Also, make provisions for death, divorce, disability and departure so you have exit strategies in place if needed.
Good luck.
Regards
2007-03-03 16:55:37 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Consult an R.E. Attorney.
2007-03-03 15:19:43 · answer #5 · answered by smiling_freds_biz_info 6 · 0⤊ 0⤋