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My grandmother is selling her beach house. My parents and I want to buy it 50/50. We have agreed on a price. Now we we have an inspection to see if there are any issues we aren't aware of. My parents are paying cash for their portion. My hubby and I will take out a mortgage for our half. So how do we do this? What are the next steps without using an agent?
My grandmother is selling her beach house. My parents and I want to buy it 50/50. We have agreed on a price. Now we we have an inspection to see if there are any issues we aren't aware of. My parents are paying cash for their portion. My hubby and I will take out a mortgage for our half. So how do we do this? What are the next steps without using an agent?
What do you mean "grandmother IS selling her beach house"???
If this property is listed with a real estate agent odds are the agent is owed a commission regardless of whether you want to buy granny's place or some random stranger that knows granny materializes wanting to buy it.
If it is not listed for sale and granny has merely expressed a desire to sell I would recommend not getting a real estate agent involved.
It would be wise to consult with an experienced real estate attorney and probably with attorney(s) experienced in dealing with generational wealth / personal estate planning so that there is no problem with how the deed is recorded.
If you and parents are open to a range of options it may make signficant sense for them to purchase outright and then sell a 50% share to you,OR for you and parents to "team up" first, OR set up various kinds of 'equity sharing' arrangements OR something else depending on a range of issues including the tax situations that face both you and parents...
I would think a 'regular' bank would have a difficult time underwriting your portion of the loan because in case of default, what happens? I would think the bank would find it more palatable to have both parties go in on the loan and have your parents put half down toward the DP.
Also... if you have siblings make sure to discuss this and be open with them. When it comes time to settle your parent's estate (hopefully far down the road), who gets their half? How are other siblings compensated for the portion of the estate that you will inherit?
Work it out now... you don't want things to get ugly down the road. Money does some strange things to families.
Don't forget to think about grannies estate as well.
The suiggestion that you speak with an estate attorney is very good advice. There may be more than one way to skin this cat, especially since you will be making payments.
I don't know the details, but i am thinking along the lines that your parents are perhaps going to get the house when granny dies. Maybe there is a better way to do this transfer now with payments flowing to granny in exchange for a transfer of title. Some gift ( i think she can give $1 MM during her lifetime in addition to the $13K per year) arrangement is where i am coming from, but i am NOT an Attorney, and you should make sure to vet every angle with an attorney and have a solid contract.
Make sure whatever deal you do is rock solid and written down. Doing deals with family members brings emotions into a business transaction. People get bent out of shape over the simplest of thigs...and they don't let go.
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What do you mean "grandmother IS selling her beach house"???
