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Old 11-25-2018, 04:47 PM
 
1,654 posts, read 569,044 times
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A question for the OP: You say that you are adding the second floor to the garage and creating new living space. Does that mean you yourself are paying for the cost of the work?

If so, then my second question is whether your name will be added to the deed for the property as a co-owner.

Some states allow ownership of residential or other property to be divided into specific shares; don't know what the law is in your state but that's one of the things an attorney can tell you. For example if it can be agreed that the improvement you make (the addition) represents, say, 15% of the value of the property, perhaps your name can be added to the property deed as a 15% share owner. That would give you a say in any possible future changes such as divorce or an eventual sale of the property while you are still there.

If that isn't going to, or can't, happen then IMHO you should speak to an attorney about the concerns that you have. You will be investing in -- as you've said -- and improving that property and that should, in fairness, give you a stake in what eventually happens to it during your lifetime.

twinkletwinkle's comment about what can happen to a minority partner may not apply in your state. Also, corporate partnership agreements don't necessarily operate under the same rules as real estate ownership share agreements (at least not in my state.) Even landlord/tenant laws are different state to state.
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Old 11-25-2018, 04:54 PM
 
6,820 posts, read 3,867,159 times
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Quote:
Originally Posted by Clemencia53 View Post
I would be concerned about climbing stairs as I get older.

Agree. My first thought also.
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Old 11-25-2018, 05:00 PM
 
1,196 posts, read 354,710 times
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If something can go wrong it will. You can pretty much count on the stairs being a problem as you age. Financially this looks like a good deal for you son and daughter-in-law. Other than being near to your family I don't see it as a good deal for you. There are just so many things that can go wrong.

Do you have any other children? They might look at this as not being in their favor.

If you do it I hope it works out. But protect yourself and don't let hurt feelings (you don't trust us) influence your decision.
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Old 11-25-2018, 05:28 PM
 
2,103 posts, read 717,805 times
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Remember that even if you have some arrangement in which they agree to pay you back for your investment (say, X% of the proceeds), that might not be enough for you to settle elsewhere. You might be able to stay on and rent from a new owner but there's no guarantee. Finally, since improvements rarely add 100% of the cost in the form of value added to the new home, all of you may be in a losing position if they sel. Example with hypothetical numbers: The house is now worth $200,000. You pay $100,000 for the addition and they agree that you'll get 1/3 of the proceeds should they ever sell. If it sells, say, for $250,000, you get only about $75,000 from the sale.

You mentioned having "Little to no mortgage" but I doubt you'll be able to borrow at all since your name isn't on the title.

I'm a "what can go wrong" worrier, too!
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Old 11-25-2018, 06:53 PM
 
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"....want to plan for every contingency i can."

1. fire/flood/earthquake/hurricane...get your own individual insurance.
2. zoning/HOA/neighbors....everyone ok with this?
3. spell out every little thing on paper.

"What if what if WHAT IF??!"
what if they die and leave you everything?
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Old 11-25-2018, 07:21 PM
 
2,111 posts, read 2,092,718 times
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What if you have to go into a nursing home? Do you have insurance or enough money? If you go on Medicaid and the gov't picks up the bill, they may want your share of the house and your son and his family could be forced to sell.

Having the son put the addition on and you rent as one other poster suggested may be your best option if it's possible.
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Old 11-25-2018, 07:23 PM
 
Location: planet earth
4,826 posts, read 1,842,988 times
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Just talk to them and draw up a plan where if they move for any reason, that you would get some percent of any positive equity earned on the sale (whatever would be fair - to determine that, before you build, get an appraisal, then after the addition is done, get another appraisal).
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Old 11-26-2018, 04:04 AM
 
Location: Scottsdale, AZ
7,670 posts, read 4,712,277 times
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Your son and his wife, do they have minor children? Are they expecting you to be live-in child care? That would put a crimp in your expectations of fancy-free travel.

It is perhaps a great deal for you but I wonder what they hope to get out of it.
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Old 11-26-2018, 04:27 AM
 
404 posts, read 494,543 times
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Thanks so much for your thoughtful replies!
First, stairs. Yes they can be a huge deal, and with planning can be made easier/doable.

Second---Nothing happens without proper permits and zoning approval---I am very familiar with those and my late husband was a building inspector---not to worry on that end!
I'm also looking into park models (too small at 400ft max), granny pads, yurts, etc. May as well explore all of my options!

Third--the 'kids' are worried about my investment too, we'll be talking more of course, and will explore the options thoroughly as we go along.

They want me here because my home state is a 2 day drive (for me anyway) and I'm not the healthiest person around. Basically less worry for my son and dil if they can see me every day.

I'm headed to the town clerk today to continue the research.
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Old 11-26-2018, 04:30 AM
 
404 posts, read 494,543 times
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Quote:
Originally Posted by fluffythewondercat View Post
Your son and his wife, do they have minor children? Are they expecting you to be live-in child care? That would put a crimp in your expectations of fancy-free travel.

It is perhaps a great deal for you but I wonder what they hope to get out of it.

I would LOVE grandkids, but it may not happen for them.

When I die they get it all anyway.
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