December 29th, 2009
What pertinent information do I need to sell property to a family member?
I am offering owner financing to a relative for property I own out of state. The interest rate will be set at 3% for 5 years. I was planning to print out an amortization chart for us both to follow, but I need help determining what legal paperwork I need for the actual transaction showing the payback agreement. Also, do I need to file this in the state it’s being sold, and do I need to notarize it?
What exactly do I need to know to make this a legal transaction?
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Filed under: Sell Property
You need to part with some money to hire a real estate lawyer to make sure you do this right.
You need a real estate lawyer. Also, you are not charging enough interest – the IRS could charge you additional tax based on what you should have earned and view the difference in earning as a gift back to your family member.
If you the property is in WA State, there are some LPO forms that you can get online to help you fill out the forms. It’s best that you hire a real estate attorney to do this as they will identify some ‘what if’s’ in the paperwork to make sure you have this discussion with everyone before hand. You don’t want to be caught in a sticky situation.