My son wants to buy my home which is already paid for. We both agreed on a price and he is going to get a loan approval. What do I need to do next? Is this a good idea to do without the help of a realtor since it is family? He is a little irresponsible, but if he can get the loan and buy it then that's fine. I just don't want to be part of any problems in the future. Any suggestions?
2007-08-14 10:10:10 · 10 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
It would be a good idea to have a lawyer draw up the paperwork to be sure everything is in order, but you don't need a realtor.
2007-08-14 10:18:10 · answer #1 · answered by Judy 7 · 1⤊ 1⤋
As a Realtor, I agree with the above comments. A real estate attorney will make sure you have all the forms and disclosures necessary to sell property in your state. The attorney can also handle the closing, no need to pay a title company separately for the title search / title insurance/ document preparation. If tax consequences are an issue for you or your son, consider an equity gift to your son. Make sure he is the only one on the note/mortgage and deed so that if he messes up in the future, its his problem and not yours. Set the deal up so he has the best opportunity to be successful in the long term with the house, but there is no reason to "give away the farm". If he is successful, then Thanksgiving and Christmas dinner will always taste good.
2007-08-14 10:45:10 · answer #2 · answered by aka_brian_1040 3 · 1⤊ 0⤋
Having a Realtor (r) help with your sale is the best route. Realtors are here to help make sure your transaction goes smoothly. They do a lot of work so you don't have to.
I highly suggest you sit down with one, and talk to them about your situation.
There is paperwork that needs to be filled out; a transaction coordinator to make sure all the papers are correct; title company to contact to make sure the title is clear (that's part of what a title company does); and inspectors to deal with, just name a few things to be done.
What if your son doesn't have enough credit to buy the home?
What if the price you came up with isn't considered fair market value?
What if you actually owe more than the home is worth?
Would you be willing to deal with your lender, if it is?
In California, a buyer can sue the seller up to two years after purchase of a home for defects the appear.
A Home Warranty is usually only good for about a year, and is meant to help the buyer of a home against appliance defects.
A plus when working with a Realtor (r), when your son isn't able to get a loan, you don't have to pay us.
Real Estate Professionals are only paid when escrow closes.
2007-08-14 10:46:15 · answer #3 · answered by the_kitten_trouble 2 · 0⤊ 2⤋
I agree with the posters who recommended a real estate attorney. In my area, he or she can be obtained through the title company and the title company can reassure you both that there won't be any problems with the title at a later time.
I'm surprised no one recommended you and your son, at closing, purchase a policy to ensures all systems in the house are operating properly. If you're interested, these policies generally cost under 500 bux.
Also, since your son is, as you put it a little irresponsible, you might want to ensure that he has socked away some of the essentials including property taxes and the insurance (yadda, yadda, yadda)
I'm sure you don't want to just unload the property, you also want to ensure that your son is in the best position possible not only to acquire property but to also maintain it.
So, yes, make sure he has the appraisal done, the termite inspection, the title work and everything that accompanies his being in the position to maintain his homeownership interest.
Best wishes to you both!
2007-08-14 10:36:20 · answer #4 · answered by TygerLily 4 · 1⤊ 1⤋
In this situation you and your son need to have attorneys not realtors.
If each of you is represented by legal council for the purchase and sale, there is no legal conflict now or later (or less of a chance there will be).
Lawyers are considered qualified legally to write real estate contracts and represent their clients, without a formal real estate license.
Many attorneys will wait to be paid at closing, and their fee can become part of the closing expense paid from the proceeds of the sale.
If your son doesn't get the loan or doesn't close, you will be expected to pay your attorney's fee.
2007-08-14 10:27:21 · answer #5 · answered by LadyB!™ 4 · 0⤊ 1⤋
Do not waste money on a realtor or real estate attorney. A title company will do everything that needs to be done for a flat rate usually in the hundreds of dollars range.
2007-08-14 10:20:55 · answer #6 · answered by S B 1 · 0⤊ 2⤋
So long as you get your selling price at closing, with an attourny. Should cost between 3 and 4 hundred for an attourny. Any nonpayment on his loan is every bit his responsibility. Unless you co-sign. Then you would be part of it..
2007-08-14 10:19:48 · answer #7 · answered by gayannboxing 2 · 0⤊ 1⤋
I agree with the above comments. One thing I would add is that you should find a good title insurance company to close the transaction. The title company prepares most of the documents for your closing and will assist you greatly. Check with several in the area to find out about fees etc. as they can vary.
Good luck to you.
2007-08-14 10:20:21 · answer #8 · answered by Anonymous · 1⤊ 1⤋
I would use a title company. They will draw up all of the paperwork for about $300. Well worth the money. You will probably need to use a title company in CA, but they can fax and fedex you anything that needs to be signed.
2016-05-17 22:43:05 · answer #9 · answered by devona 3 · 0⤊ 0⤋
You definitely do not need a realtor, however you should get a Real Estate Attorney to handle your affairs.
2007-08-14 10:18:28 · answer #10 · answered by Irish 7 · 1⤊ 1⤋