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Old 08-25-2017, 08:49 PM
 
Location: Georgia
4,451 posts, read 3,497,720 times
Reputation: 15229

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Quote:
Originally Posted by howard555 View Post
I like the idea of cash but want all the legal documents prepared by a real estate lawyer who handles closings to protect us against any future issues of all kinds including personal injury due to some structural failure. I won't be able to force them to buy home owner's insurance. I want to be protected. Similar to the standard bill of sale when you sell a car. Release of liability.
Please, for heaven's sake, talk to an attorney. You have a very warped idea of what is involved in the sale of a house.

1. An attorney will prepare the paperwork. Without a mortgage, it is minimal.
2. Most attorneys will require that funds be wired to their real estate account. Not too many show up with a cashier's check anymore.
3. A sale is a sale is a sale. Nothing you do, say or write is going to keep a buyer from suing you if they feel that you have lied to them or deliberately mislead them as to the condition of a house. As long as you aren't doing that, it's pretty much caveat emptor. Usually, the onus is on the buyer to inspect the house and satisfy themselves as to its material integrity. You are not an insurance company; it is not up to you to warrant a house. If they are worried, give them a home warranty plan that's good for a year. It's between $400-600, depending on the size of the house.

Having said that, if a seller came up to me waving a form that said, "You must sign this form to relieve me of any responsibility in case the house falls apart." Red flags will be flying wildly, as I would be immediately suspicious that the seller knows something is wrong, but isn't confessing it.
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Old 08-25-2017, 08:55 PM
 
Location: The sleepy part of New York City
1,830 posts, read 912,040 times
Reputation: 3952
I just reread your original post..

You're not even talking about yourself. It's the neighbors house that someone wants to pay cash for.
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Old 08-25-2017, 09:53 PM
 
7,902 posts, read 6,815,334 times
Reputation: 17058
OP. I spent from 1972 till I finally retired as an investment real estate broker. I have one question for you:

What is wrong with someone paying cash for a home. They just present a cashiers check at closing for the total amount of the property price, plus fees. A lot of people pay cash, and have no reason to get a loan. They don't want one.

When in the business, I had 2 open lines of credit, where I could pay up to $500,000 using either one to put a transaction together, and not have to take out a mortgage. I bought and sold a lot of property, when I was a principal buying and then selling for a profit.

A lot of people from foreign countries, do not take out mortgages and pay cash, and your potential buyer is a foreign national (the parents). In these situations, the odds are it will be a cash sale, without a mortgage involved. In fact it may be difficult for them to get a mortgage if they wanted one, as they are not known to the credit reporting agencies.

We have a luxury home, and it is free and clear. Our cars are a F150 Pickup, and an Explorer Limited SUV. Both without loans. In fact, we have not had anything but monthly bills. for the past 35 years. We don't need credit, and don't use it.

If we were buying your home, it would be for cash with a cashiers check from a local bank at time of closing. We would have our bank transfer the money to a local bank, and they would issue a cashiers check.

You don't need a Realtor when it is a private party buying from a private party. As to the paperwork, all you need to do is have a local attorney draw the papers, and I prefer to let the local Title Company handle the closing and they will be the ones that are guaranteeing the title.
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Old 08-25-2017, 09:55 PM
 
Location: Raleigh
6,029 posts, read 4,475,387 times
Reputation: 7956
Quote:
Originally Posted by howard555 View Post
All good points and we agreed before we asked the question.



We know such a lawyer that we have worked with 4 times.



We have one in mind



It's asking a price and the buyer agrees - negotiation.
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I know of a situation where a house was sold with a defect. The inspector missed it. This defect later helped start a fire. I want no liability for any injury to person or property on or after the closing date.
You pretty much never will have any liability...unless you lie, and they can prove it. If there was shoddy electrical work, even if you did it a hack wiring job yourself, you aren't liable unless you know you did a dangerous hack job, and lied about it.
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Old 08-25-2017, 10:53 PM
 
2,472 posts, read 871,116 times
Reputation: 2766
well a cash buyer may have funds that are not known about by the IRS, and may want some of the money "not seen" by the government. what occurs on paper gets some type of tax, and what is off is invisible. $100,000 un taxed is a good thing, in some peoples eyes.
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Old 08-26-2017, 01:17 AM
 
Location: Wasilla, AK
4,857 posts, read 2,481,279 times
Reputation: 9328
Quote:
Originally Posted by kapikap View Post
well a cash buyer may have funds that are not known about by the IRS, and may want some of the money "not seen" by the government. what occurs on paper gets some type of tax, and what is off is invisible. $100,000 un taxed is a good thing, in some peoples eyes.
Guess you've never heard of IRS Form 8300.
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Old 08-26-2017, 02:03 AM
 
6,289 posts, read 6,795,910 times
Reputation: 10641
Quote:
Originally Posted by howard555 View Post
An appraisal might be in the buyers favor so I might like to avoid an appraisal.
You don't seem to know what the property is worth so you need to either do your homework and investigate comparable sales or, for more confidence, pay for an appraisal. You don't need to share the results of the appraisal to a prospective purchaser.

Quote:
Originally Posted by howard555 View Post
It's asking a price and the buyer agrees - negotiation.
A negotiated price does NOT mean that the price is market value. If one or both parties have no clue as to market value it's easy for a negotiated price to be high or low in relation to market value. But...if you're comfortable with a price, it's certainly okay for you to sell at that price. No one else will really care.

Quote:
Originally Posted by howard555 View Post
I know of a situation where a house was sold with a defect. The inspector missed it. This defect later helped start a fire. I want no liability for any injury to person or property on or after the closing date.
You need to disclose all known defects. It's as simple as that. You still can't stop anyone for suing you if they feel that you deceived them.

Quote:
Originally Posted by howard555 View Post
What are all of the things to consider in this scenario and of course real estate agents are going to promote the need for an agent.
As long as you're aware of the market value, you certainly don't need an agent. If you know what you're doing, selling FSBO is perfectly fine and can save you money. So much for your theory.
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Old 08-26-2017, 04:37 AM
 
10,610 posts, read 12,719,823 times
Reputation: 17084
I knew this was gonna be a funny thread as soon as I saw the title.

OP you're mixing up all different complaints and theories and none of them has anything to do with a cash sale.

appraisals, fires, agents, titles, lawyers, comps

Did you literally say you'd "like to avoid an appraisal"?

You seriously don't know ANYONE who paid cash for their house.?

I did. I saw my condo on a Wed. and made a cash offer on Thurs.

I assume you've never actually SOLD a house or you'd understand the beauty of THAT sale.

I HIGHLY recommend you chose to be a renter.
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Old 08-26-2017, 06:13 AM
 
Location: Cary, NC
30,151 posts, read 52,876,845 times
Reputation: 28329
Quote:
Originally Posted by runswithscissors View Post
I knew this was gonna be a funny thread as soon as I saw the title.

OP you're mixing up all different complaints and theories and none of them has anything to do with a cash sale.

appraisals, fires, agents, titles, lawyers, comps

Did you literally say you'd "like to avoid an appraisal"?

You seriously don't know ANYONE who paid cash for their house.?

I did. I saw my condo on a Wed. and made a cash offer on Thurs.

I assume you've never actually SOLD a house or you'd understand the beauty of THAT sale.

I HIGHLY recommend you chose to be a renter.
LOL and

All I can think of is...
"In the land of the blind, the one-eyed man would be king."

Oh, and I don't care if the OP uses an attorney, real estate agent, car wash attendant, or brother-in-law Bob's cellmate at the Iron Bar Hotel.
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Old 08-26-2017, 09:59 AM
 
Location: Raleigh NC
6,586 posts, read 5,310,441 times
Reputation: 5705
...but for the love of Pete, use someone with a clue to the real estate sale process!
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