We've already come to an agreement on terms for me to buyout my partner on a SFR. I just need to know how to LEGALLY make this happen. I'm guessing that
1) we'd need a purchase agreement.
2) maybe we'd need a quitclaim deed?
3) maybe we have to go through a title company?
I'd really appreciate basic instructions on what we should do.
Thank you so much!
Well done! If you have an agreement on the terms, put them on paper and sign it and you will have completed step one @Cameron Davis . Yes an attorney should look over the agreement and each should have an attorney. It may be as simple as a quitclaim deed, it depends; county laws vary. Who owns title to the property? An LLC, or are both your names on the title? If it is the LLC, the LLC operating agreement will tell you the breakdown of the ownership shares and the capitalization the company. Do you have a lump of money to return his capital and his percentage of profit? The 'how' you pay back his capital (and maybe profit) goes on the purchase agreement. I do not know enough about the loan, if you have one and if it is changing, to know if you need to use a title company or escrow officer. They record things with the county and move money around, but maybe you could do it yourselves. Let your attorney advise you since local rules apply.
@Kathy Henley Thank you! This is in Milwaukee County, Wisconsin. The title is in my partner's personal name and my trust. He is seller financing... I have a Purchase Agreement with the terms... $5k down, balance to be paid in 2 years at 7.5% interest. He has made me multiple loans over the years, so we don't have any hesitancy (or feel the need for an attorney).
So I'm not sure if he just signs the PA and the Quitclaim, or if there is more that needs to be done.
Originally posted by @Cameron Davis :
He has made me multiple loans over the years, so we don't have any hesitancy (or feel the need for an attorney).
Always get an attorney for any sort of legal paperwork. Even if you think you can trust the other party. Otherwise you risk getting burned.
Thank you for the advice @Dawn A. I know that's what everyone says. But what steps do I take to transfer title?
@Cameron Davis . Maybe the best approach is to go thru a title company They should be able to complete the transaction in a lawful manner. I would not attempt to do this without some sort of legal and profession
Guidance. The laws and the IRS are to intimidating for me.