Buying property for In State tuition

11 Replies

Hey all,

I am buying a house outside of Waco TX in my daughters name so she can get in state tuition. The plan was to buy a cheap house and sell it and carry the paper so I wouldn’t have the headache of being an out of state land lord. The house must be in her name. Question is: when the house goes under contract is it then in the buyers name, thereby undoing what I need to do to gain residency?? Is there a way to avoid this? Any suggestions would be appreciated.

Dan

I believe your daughter will need to have lived there for at least 12 months and had utilities in her name before you can claim residency.  You can confirm with the school or a local attorney to verify if this is the case for your area.

I’ve already researched the residency part. She doesn’t need to live In The home, just own it for a year. I  Just wanted to know how the seller carry arrangement impacts her name on a deed? Thanks. 

@Dan Schalk

I believe you are mistaken that purely buying a property in Texas establishes residency for in state tuition.  Here is the guideline for establishing a domicile:

To establish domicile, you or your parent(s)/guardian(s) must meet the following criteria:

  1. Live in Texas for 12 consecutive months; and
  2. Establish and maintain domicile for 12 consecutive months by doing one of the following:
  • Be gainfully employed in Texas (student jobs do not qualify as gainful employment);
  • Have sole or joint marital ownership of residential real property in Texas by the person seeking to enroll or the dependent's parent, having established and maintained a domicile at the residence;
  • Own and operate a business in Texas;
  • Be married for one year to a person who has established domicile in Texas.

I’ve talked to the residency specialist at the school. The fifth criteria is to own a residential property for one year. You DO NOT have to live in the property but you do have to live in the state ( hold a valid drivers license and be registered to vote).  This post isn’t about establishing residency as I’m am completely confident that I have the correct answer to that (from the person at the school who reviews residency) It’s about carrying paper on a property and if my daughters name remains on the deed if she sells it and holds the paper. 

@Dan Schalk

While I am not on board with your logic on the residency, that is not your question

In many states, you could sell via rent to own or contract for deed.  In Texas, the qualifications to do so are so difficult that in reality no one does this at least in accordance with the law

Originally posted by @Dan Schalk :

Hey all,

I am buying a house outside of Waco TX in my daughters name so she can get in state tuition. The plan was to buy a cheap house and sell it and carry the paper so I wouldn’t have the headache of being an out of state land lord. The house must be in her name. Question is: when the house goes under contract is it then in the buyers name, thereby undoing what I need to do to gain residency?? Is there a way to avoid this? Any suggestions would be appreciated.

Dan

 Is your daughter over 18? Is this a new application or transfer? I'm not sure I follow your "headache" of out of state landlord. If you have a PM and a good house, good tenants paying below market rent. There are very few items that you would have to address on an annual basis.