how does selling a house to a relative work?

Question

my grandma died last year and left the house to me and my two uncles. my one uncle wants to buy it from us for $455, 000.00. if he buys it from us does that mean that he gets 1/3rd share of the money plus the house or does that mean that he just gets the house and my other uncle and i split the money? i am confused

Answer 1

That is a very good question. The answer would be found in the purchase agreement. If it is not specifically stated that this amount would be split to pay for your interest and your other uncles interest, it could be assumed that the remainder of the total purchase price after transfer expenses would be split 3 ways.

If you intend for the $455,000 to buy out 2/3 of the owners, the property should have a current value approximately $682,500.

If this were my family, I would insist on the transaction being supervised by an attorney specializing in real estate, and an independant professional appraisal. I would want to eliminate future recriminations when someone thinks they were taken advantage of.

Answer 2

Assume the house is worth $450,000 (easy math) Three of you own equal shares, which means you each have $150,000 worth of equity. Since the one uncle already owns his $150,000, he pays the remaining two of you $150,000 each. That way, each of you end up with $150,000 in either cash or equity in the house.

Answer 3

You are asking the wrong people. Ask your uncle what he intended. Or better yet, ask him to make a formal offer in writing.

Answer 4

o.k.
If 3 of you are on title ( have ownership in this property) , do as cash-out refinance, You will get 1/3 and sign in quit claim deed.
thanks

Answer 5

contact Kevin at [e-mail]. Or call your local bank. you will get the answers you need.