Buying a house from parents

Guest 0.10 Dollars($)

Can parents sell their house(paid off mortage) to one of their children as little as they want? How can we initiate this process? Any help would be greatly appreaciated.

livinginnky · Posted: Sat Jan 26, 2008 11:05 am Post subject:

Absolutely!

Are you going to obtain a mortgage?

If so the lender/broker and title company/attorney should be able to help you with the purchase contract. You could get a real estate agent but I don't see the point if it is your parents and you trust them.

lisascherzer · Joined: 04 Jan 2008 Posts: 599 69.58 Dollars($)

Yes, they can sell the home for any amount to you. They can even give you the home for free if they wanted.

If you need a mortgage to purchase the home from them, I can suggest ways to do this without any down payment or out of pocket expense to you. Just let me know if this is the case and I can go over how to accomplish this.

jameswells · Posted: Sat Jan 26, 2008 11:49 pm Post subject:

You will likely want to talk with a tax consultant about this situation. Yes they can sell it to you for any amount and even give it to you, but there will be tax consequences for both those situations you should be aware of. The government doesn't want to give up their money easily!
Once you've talked with your CPA- a title company will be happy to help you with the transaction and will be the least expensive route- they should also be able to refer you to attorneys/mortgage brokers if you have those needs as well.

chrisburns · Posted: Sun Jan 27, 2008 5:12 pm Post subject:

This is called a gift of equity if your obtaining a mortgage.

If not they just transfer the title to you Smile

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