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Old 08-24-2009, 12:45 PM
 
87 posts, read 308,446 times
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Hi everyone,

I have a friend who's considering buying a house from his brother. I guess a real estate agent is not needed, right? Does anyone know the proper steps for such a transaction? Thanks a lot.
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Old 08-24-2009, 12:53 PM
 
469 posts, read 877,005 times
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Arrow Mortgage?

If your friend is getting a mortgage, the lender may require things to safeguard their loan, such as an appraisal, title search, and home inspection. If the sale price is far below market value, there may be tax issues too.
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Old 08-24-2009, 12:59 PM
 
87 posts, read 308,446 times
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Quote:
Originally Posted by Oldsmobile View Post
If your friend is getting a mortgage, the lender may require things to safeguard their loan, such as an appraisal, title search, and home inspection. If the sale price is far below market value, there may be tax issues too.
Thanks Oldsmobile. Do you know who to contact to get an appraisal, title research done? What kind of tax issues if the house is sold below market value, can you please explain? Thanks!
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Old 08-24-2009, 01:02 PM
 
Location: South Charlotte
1,435 posts, read 5,222,785 times
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The appraisal is ordered by the mortgage company or loan officer if its a FHA loan program.
The title work is normally ordered and reviewed by an attorney in NC or SC then sent on to the lender for final review.

They need a lender and a real estate attorney to get the transaction closed. Each one will need the other's information as well to communicate back and forth.
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Old 08-24-2009, 01:08 PM
 
Location: NE Charlotte, NC (University City)
1,894 posts, read 5,728,509 times
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As I understand it (and I'll tell you real estate is not my strong suit, but I did just buy a house a year and a half ago and became as well versed as I could since I went realtor-less), NC law says an attorney must be involved in all real estate transaction closings. I'm 99% sure this is true, as long as they haven't changed it since Feb '08. In this case, I'd call a few real estate attorneys and ask how much they charge for a closing. Mine was $400, just for a reference point.

And to directly answer your question, no, they don't need an agent on either side...as long as they're willing to do the legwork themselves. For saving 3-6%, I'll make phone calls all day!
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Old 08-24-2009, 01:10 PM
 
87 posts, read 308,446 times
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Thanks everyone for your input. I'll pass this along to my friend.
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Old 08-24-2009, 08:34 PM
 
Location: Mostly in my head
19,817 posts, read 55,828,607 times
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Another choice would be an agent who would be willing to do it for a flat fee, say $3K, as it does involve a lot of work.
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Old 08-25-2009, 07:04 AM
 
Location: Charlotte, NC
7,041 posts, read 13,110,264 times
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Quote:
Originally Posted by Metallisteve View Post
As I understand it (and I'll tell you real estate is not my strong suit, but I did just buy a house a year and a half ago and became as well versed as I could since I went realtor-less), NC law says an attorney must be involved in all real estate transaction closings. I'm 99% sure this is true, as long as they haven't changed it since Feb '08. In this case, I'd call a few real estate attorneys and ask how much they charge for a closing. Mine was $400, just for a reference point.

And to directly answer your question, no, they don't need an agent on either side...as long as they're willing to do the legwork themselves. For saving 3-6%, I'll make phone calls all day!
Actually, Steve, you are partially correct. A real estate atty must be involved in all purchase money transactions. Refinances are able to use a notary closer.
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Old 08-25-2009, 06:41 PM
 
7,106 posts, read 9,705,958 times
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Quote:
Originally Posted by phugia View Post
What kind of tax issues if the house is sold below market value, can you please explain? Thanks!
Not on a public forum board. . . I wouldn't think.
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Old 08-25-2009, 07:08 PM
 
Location: Charlotte, NC
7,041 posts, read 13,110,264 times
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actually, there are less tax issues (well, maybe the doc stamps paid for) but more issues with the future values of the homes in the neighbourhood (including your own)
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