U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 03-18-2018, 12:39 AM
 
Location: Mendocino, CA
858 posts, read 476,200 times
Reputation: 561

Advertisements

New progress -- my wife mentioned this to her mother, and mother-in-law is interested in stepping in to do this deal for me. My mother-in-law is a real estate investor, and actually is hunting for a property in the 1~1.5 mil range (this is only moderate price level in SF bay area), so she can easily divert $300K to do this deal.

I don't know if this is apparent in my original post -- by having *relative* do this, there is implied trust and good will between the parties; even if one party yield some profit to the other party, or one party missed a profit opportunity because of this, it's not a big deal. I have done the same for other relatives. This is what family is about, at least for our family.

Even so I will not abuse that good will. I will have my mother-in-law buy the property and place it under her name. In this round of buying, we will do all the due diligence that comes with buying a house (title search, etc). Then when the time comes, I will buy it from her.

With this, going back to my original question, when the time comes for me to repay my mother in law and take the title, based on the suggestion here I can just contact a title company, maybe the one we use for this initial purchase, and pay the appropriate fee for the service. Is this correct?

And if so, any idea approx. how much I can expect to spend for this?
Reply With Quote Quick reply to this message

 
Old 03-18-2018, 04:57 AM
 
1,528 posts, read 724,410 times
Reputation: 2062
Quote:
Originally Posted by RoamingTX View Post
Incorrect. ILB advises the use of a professional - a title company.

Your soap box is worn out.
Quote:
Originally Posted by Steve McDonald View Post
This is something that should have been suggested earlier in this thread. When a real estate broker is not used for a property purchase, at least hire a title company to do a search on the deed and buy their insurance, to cover anything that might be missed and put the ownership in jeopardy.
Roaming...it doesn't matter. ILB definitively concluded that a lawyer isn't needed in the OP's transaction and advised him as such in her capacity as a licensed agent. That's irresponsible to definitively conclude at this point. Doesn't matter if instead she suggested that they get a priest to bless the transaction or indeed to hire an agent to oversee it. Same position as before.

Steve...I don't really have a comment other than that my understanding is that the use/role of title companies, escrow agencies, lawyers, real estate agents, etc in closings differs greatly across the states. In some states there are even differences within counties/regions in states in my understanding.

A title company is not a replacement for a lawyer, a real estate agent, an inspector, an escrow agency, an appraiser or anything else. It's advisable that some transactions have some of these things, none of these things or all of these things and the consumer's decisions as to which types of professionals they choose to hire or exclude are vital to the success of the transaction. Therefore, it's a type of advice that should not just be thrown around willy-nilly on an internet forum by licensed professionals as bad advice in this area can be very harmful.

Am I wrong?
Reply With Quote Quick reply to this message
 
Old 03-18-2018, 04:57 AM
 
10,608 posts, read 13,373,641 times
Reputation: 17153
It's never required to use a real estate agent.

Just like it's never required to use a car salesman to buy a car.
Reply With Quote Quick reply to this message
 
Old 03-18-2018, 05:00 AM
 
10,608 posts, read 13,373,641 times
Reputation: 17153
Quote:
Originally Posted by just_because View Post
Roaming...it doesn't matter. ILB definitively concluded that a lawyer isn't needed in the OP's transaction and advised him as such in her capacity as a licensed agent. That's irresponsible to definitively conclude at this point. Doesn't matter if instead she suggested that they get a priest to bless the transaction or indeed to hire an agent to oversee it. Same position as before.

Steve...I don't really have a comment other than that my understanding is that the use/role of title companies, escrow agencies, lawyers, real estate agents, etc in closings differs greatly across the states. In some states there are even differences within counties/regions in states in my understanding.

A title company is not a replacement for a lawyer, a real estate agent, an inspector, an escrow agency, an appraiser or anything else. It's advisable that some transactions have some of these things, none of these things or all of these things and the consumer's decisions as to which types of professionals they choose to hire or exclude are vital to the success of the transaction. Therefore, it's a type of advice that should not just be thrown around willy-nilly on an internet forum by licensed professionals as bad advice in this area can be very harmful.

Am I wrong?
The OP question was: "Can I buy/sell a house without a real estate agent?"

(even though for some reason, they muddied the waters by making it about family transactions)

The answer is irrefutably "Of course you can."
Reply With Quote Quick reply to this message
 
Old 03-18-2018, 05:30 AM
 
6,359 posts, read 7,321,320 times
Reputation: 10807
Quote:
Originally Posted by rhbj03 View Post
New progress -- my wife mentioned this to her mother, and mother-in-law is interested in stepping in to do this deal for me. My mother-in-law is a real estate investor, and actually is hunting for a property in the 1~1.5 mil range (this is only moderate price level in SF bay area), so she can easily divert $300K to do this deal.

I don't know if this is apparent in my original post -- by having *relative* do this, there is implied trust and good will between the parties; even if one party yield some profit to the other party, or one party missed a profit opportunity because of this, it's not a big deal. I have done the same for other relatives. This is what family is about, at least for our family.

Even so I will not abuse that good will. I will have my mother-in-law buy the property and place it under her name. In this round of buying, we will do all the due diligence that comes with buying a house (title search, etc). Then when the time comes, I will buy it from her.

With this, going back to my original question, when the time comes for me to repay my mother in law and take the title, based on the suggestion here I can just contact a title company, maybe the one we use for this initial purchase, and pay the appropriate fee for the service. Is this correct?

And if so, any idea approx. how much I can expect to spend for this?
It should be inexpensive--a few hundred dollars at most, depending on how it is done (e.g. title company, attorney).

As part of your due diligence, it's still important to know how California law would treat a transfer between relatives. In Michigan, a transfer between close relatives is exempt from transfer tax. A transfer between close relatives would also not affect the tax assessment here (which it does in other transfers). California law may be similar, which is likely...or it might be different. The answers may affect how title is best taken initially.
Reply With Quote Quick reply to this message
 
Old 03-18-2018, 06:28 AM
 
1,512 posts, read 563,734 times
Reputation: 2944
Quote:
Originally Posted by just_because View Post
Roaming...it doesn't matter. ILB definitively concluded that a lawyer isn't needed in the OP's transaction and advised him as such in her capacity as a licensed agent. That's irresponsible to definitively conclude at this point. Doesn't matter if instead she suggested that they get a priest to bless the transaction or indeed to hire an agent to oversee it. Same position as before.

Steve...I don't really have a comment other than that my understanding is that the use/role of title companies, escrow agencies, lawyers, real estate agents, etc in closings differs greatly across the states. In some states there are even differences within counties/regions in states in my understanding.

A title company is not a replacement for a lawyer, a real estate agent, an inspector, an escrow agency, an appraiser or anything else. It's advisable that some transactions have some of these things, none of these things or all of these things and the consumer's decisions as to which types of professionals they choose to hire or exclude are vital to the success of the transaction. Therefore, it's a type of advice that should not just be thrown around willy-nilly on an internet forum by licensed professionals as bad advice in this area can be very harmful.

Am I wrong?
You are indeed wrong. An attorney is not required, and you continue to confuse advice with opinion.

And a title company is a perfectly good substitute for an attorney in many situations.

What I canít figure out is where your lunacy on this topic stems from. Itís very strange.
Reply With Quote Quick reply to this message
 
Old 03-18-2018, 07:50 AM
 
10,608 posts, read 13,373,641 times
Reputation: 17153
Quote:
Originally Posted by RoamingTX View Post
You are indeed wrong. An attorney is not required, and you continue to confuse advice with opinion.

And a title company is a perfectly good substitute for an attorney in many situations.

What I can’t figure out is where your lunacy on this topic stems from. It’s very strange.
They didn't say an attorney is or is not required. They said NONE Of the occupations mentioned MAY or MAY NOT be "required" by the person involved. Or NONE of them ever if the people chose to wing it.

Including a priest to bless the title. (lol good one)

There is no lunacy, there's a reading problem or an ego problem with dogmatic readers.

Read the post again, I suggest.
Reply With Quote Quick reply to this message
 
Old 03-18-2018, 09:07 AM
 
1,528 posts, read 724,410 times
Reputation: 2062
Quote:
Originally Posted by RoamingTX View Post
and you continue to confuse advice with opinion.
The only confusion is on your part if you think all opinions are created equal - random personal/layman's opinions vs professional opinions given by experts on the topic who present themselves here as experts/professionals.

Professional opinion and professional advice are very close cousins.

A licensed, professional real estate agent posting here in their professional capacity as a real estate expert and giving opinion on matters related to real estate is giving a professional opinion and that will be understood by everyone to be a professional opinion. Not just some random layman's opinion. And a real professional does not throw around opinions willy-nilly when they are operating in their professional capacity.
Reply With Quote Quick reply to this message
 
Old 03-18-2018, 09:10 AM
 
9,291 posts, read 11,138,237 times
Reputation: 12464
Quote:
Originally Posted by just_because View Post
I

I don't know the tax laws related to gifts in detail but it's possible that sales to family members that are above or below market value attract scrutiny from the tax man and could be treated as gifts if they exceed the annual gift limit. For example, if he buys the property for 200k and it's worth 150k in a year, you have agreed to buy it back for 240k. The IRS may likely see 90k minus the gift allowance as taxable income to him! Plug in different numbers for the property increasing in value and it could mean tax liability for you.
With a lifetime exemption of 11 million I suspect it would fall under that if you fill out the paperwork and the IRS wont care. I would deduct the first 15K as a non taxable gift first though.
Reply With Quote Quick reply to this message
 
Old 03-18-2018, 09:11 AM
 
Location: North Fork, Long Island
38 posts, read 25,006 times
Reputation: 114
You wouldn't be able to use only a title company in NY or PA, at least in my experience as a real estate attorney licensed in both states. This does vary greatly from place to place. IMHO, OP needs to make calls where he is located to title companies AND to real estate attorneys to best be informed as to
how to handle this in OP's location. The rest of this is speculation, aside from not needing a real estate agent.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top