How to transfer title

2 Replies

My dad has owned a property for 10+ years, and he hasn’t done anything with it. So it needs to be torn down completely, and I want to buy it from him. He paid $35,000 for it, and it’s worth around $100k today. When I write the contract out, I was planning on saying I bought it from him for $35,000 so he can avoid capital gains. Because the purchase price is pretty far under market value, will that attract attention from the IRS, or should I be fine? Sorry if this post is confusing.

It depends on how you plan to do the deal. Do you plan on going to a bank and get a mortgage? In that case, they'll have an appraisal done, and your sales contract would have to mirror something close to market.

If on the other hand, you give him a note, or take it on "Subject to" if there's a small mortgage, then I think you'll be OK.

Another way is for him to deed you half the property, add you to the deed, you now own half. then wait a while, you buy his other half. When he does this, he may choose to report gifting you the half. Many people doing it does not report the gift.