Rental Property Investor · Fort Myers, FL · Member since 2018 · 6 posts · 1 vote
Hello, I’m creatively purchasing my parents home. Originally we planned to sign a purchase agreement and have a promissory note, with no lien on the property. It’s been suggested that we can do a FL special warranty deed and transfer ownership for my parents home with a very minimal sales price. The warranty deed would have significantly less costs then full closing documents. And since there is no lender lien that will be filed on the property, there would be no need for the standard purchase agreement/closing. I’m all for paying less closing cost but I don’t want to have any tax or legal issues in the future. Thanks, Emily
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
7y
Since your parents own the property free and clear with no liens or mortgage ( I assume) you can transfer the deed with a simple Quit Claim Deed. I don't see why a special warranty, general warranty or QC deed is any difference in price.
I usually just type up my own deed and file it. I have had my attorney bless the QC deed I routinely use for myself.
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
7y
Two things to check out.....one is with your board certified real estate attorney and the other is with your parents CPA. Some attorneys and title companies don't like quit claim deeds, so have them prepare the deed they will insure in the future. You may also want title insurance to protect you from claims and faults prior to your parents purchase. Their title insurance does not protect you if there is an issue and a deed has been filed transferring to you in many cases, so check that out.
Your parents CPA may want to bless or advise you of another way to handle. There are limits on gifts each year, so you don't want to get hit with a big tax bill for doing it the wrong way.