If the first thing that comes to mind was hiring a lawyer, you’d have a great thinking mind. Lawyers make so many situations much easier. This is one of those situations.
Selling a home is a complex matter but when you decide to sell the house to a family member, even more complications ensue. While selling a home to a family member is always a great way to help out the people closest to you, it is important to take the appropriate measures to protect yourself during the transaction. The five tips below are designed to help make this transaction easier and avoid the turmoil that could result. Be sure to put this information to use and follow all of the rules of Real Estate Law to ensure that your home selling process is simple.
Tip One: Get it in Writing
Never, ever sell a home or make any other major commitments without putting it in writing and getting the contract signed and dated by the other party. Getting it in writing is the easiest way to avoid legal hassles later. It also ensures that there is a meeting of the mind and that both parties are in agreement on the same terms and conditions of the sale, including the price.
Tip Two: Legal Does It
You may get yourself into a lot of hot water if you try to avoid paying tax liability on the home or otherwise try to mishandle the sale of the home to benefit yourself or your family member. Do not take this risk and find yourself in trouble. Keep things legal from the start so there are never any worries.
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Tip Three: Hire a Lawyer
A real estate lawyer knows how to handle any home sale, especially one that occurs with a family member. He’ll handle the matter like any other, providing peace of mind and assurance that things are handled correctly in the process.
Tip Four: Don’t Finance
If you are in a position to finance the home for a family member, it is a good idea to avoid doing so and let the traditional bank provide the family member with the cash. This simply avoids any financial headaches later on and helps you avoid getting stuck with another payment in the event they renege on the mortgage.
Tip Five: Come to an Agreement
It is advisable to hire a third-party inspector to determine any issues with the home before signing on the fitted line of a contract. If you know that there are problems with the home that need repaired, come to an agreement with the family member to determine who will cover the costs of the repairs. It is better to take care of this matter ahead of time than to endure hassles later.
Use the tips here to successfully complete a home sale to a family member and enjoy a smooth transaction from start to finish. People sell their homes to family members every day but it doesn’t go as planned in every situation. Make sure to avoid such obstacles and heed the advice.