montgomery, AL · Member since 2009 · 2 posts · 0 votes
hello and any advice would be wonderful, I am computer illiterate and have never posted before so please pardon any flaws on my side.
my parents got divorced a while back, house is in both names, mother is in mental hospital but I don't think institutionalized as of yet anyway. need to find the best way to put house in my name and both are ok with it. also in the divorce papers it states my mother must sell house for appraised value but both are fine with giving house to me.
Is there a loan on the house? If so, who will pay off that loan?
I agree with Mark, you must get an attorney to handle this transaction for you. In addition, you will want to consult with a CPA about tax implications, especially if your parents have other assets.
Let me echo Jon and Mark that a competent attorney and accountant are the way to figure out the details on this deal.
They will probably steer you towards a gift deed. There shouldn't be any tax consequences because there's no profit, but you should still check with an accountant.
If your mom is still mentally fit to sign off on it herself then that would probably work or possibly someone will have to get a power of attorney for her.
And if the property still has a loan on it, then being fully aware of the implications of the Due On Sale Clause will be paramount for you too. The Due On Sale gives the lender the right to accelerate the note and foreclose on the property if title is transferred. Its not likely that the lender would enforce it, especially in this market, but it is absolutely a possibility that you need to be aware of. If the lender does accelerate the note then you would need to get it refinanced quickly.
i`m sorry in a hurry to get info i left out the fact that this house is paid in full, and in mont. alabama. father lives in florida, mother here in montgomery. if any other info is needed please let me know. I figured a lawyer would be invovled but wondering if legal zoom or something of that sort could be used.
stay away from legal zoom for this type of matter.
You want an actual real estate attorney in your neck of the woods handling this matter.
ps. I would probably also get a power of attorney for your mother regardless, if she's going to institutionalized then you want someone to be able to make decisions for her regarding this matter, that I would do quickly
No legal zoom. You want to be sure its done correctly. In the west, you could do it with just a title company. Back there closings are done with lawyers. It will cost you a few hundred, though if you buy title insurance (you should), that will be more.