I found a very motivated seller that inherited a home last year and needs to sell asap.  She doesn't want the home anymore and is willing to give it away at a great price.  She says she needs $6,000 in the next 20 days to put as a down payment for her attorney to fight charges of possession of cocaine.  She says it was her friends cocaine when they got stopped by the police.  

Should I forward the deposit straight to the attorney and if so what other stipulations can I put in the contract to make sure I'm protected and can still purchase the home at a great price?   

The numbers look like this: ARV of $160,000 in one of the best school districts. Purchase price $60,000 with a $40,000 renovation.

Thank you for your insight!

Not sure how the drug charges come in to play here. Sounds like they were "stopped by the police" which indicates the drugs were found in a car, not the house. If she's selling to get money to fight those charges, I'm not sure how the two are connected anymore than someone selling due to a divorce.  Would definitely be good to contact your attorney though.

I'm pretty new here, but it seems that everyone has their own motivations in becoming a motivated seller.... It's all business at the end of the day, as long as you protect your deal and do your homework. But again, I'm new! You know far more than I do! I've also heard many times that if a deal seems difficult in the beginning, it will only get worse from there. Good luck mate.

@Stephen Hundley

Do you have the ability to close within 20 days?  This way she can get her money before her deadline and much more.

If you can, use the ability to close fast as a bargaining chip and maybe beat her up on the price a little bit more.

@Stephen Hundley

The two have nothing to do with each other.  Apples and oranges.  Do your due diligence, check out the title, and then go into escrow if everything checks out.

Good Luck!

This deal sounds too good to be true. I suggest you engage your attorney before making any payouts, be they temporary or otherwise.

As you know, there are always two sides to a story.

I guess I'm really worried because the situation seems so unstable.  I'm leaning towards closing it in a week and letting the seller do what she wants with the money so I don't have to worry. 

@Stephen Hundley

I think you are correct.  If the numbers are accurate and the title is good I'd get the house under contract and close ASAP.  Don't mess with the drug issue.  

Hope it works out for you.

thank you to everyone for the help! I guess I needed to hear it from an outside voice but all clear now! I will negotiate final price tmrw and hopefully close in 1-2 weeks!

What matters is who has the ability to pass record title today.

Write up a contract, secure your deal with a performance trust deed (or mortgage). Record.

Put her money in escrow either title company. Release upon receiving all elements required to satisfy title.

Odds are, she's not on title yet. If only an heir, there are LOTS of things that can stand in the way of clearing title. Not to mention, other heirs. 

good news! I put the home under contract at an incredible price and scheduled to close June 22nd! Thanks for everyone's help!!