I'm talking with a motivated seller in chattanooga tn and there are some terms on the quitclaim deed he showed me that I've never seen before. It says its a quitclaim from mom to her son and grandson with "a lifetime residency clause that prevents the sell of the home and the use as collateral or business transaction" can anyone shed light on this? Am I dead in the water? Its great deal so maybe too good to be true? Thanks in advance!!
It is usually a deed granting a Life Estate to the mother.....she gets to live there for free (she usually pays the property taxes) until her death..
Life estate, will remain so til the death of the beneficiary
@Joseph Bass , unfortunately, you may be out of luck. In Tennessee (I'm a TN-licensed lawyer -- in Chattanooga, actually), when a life estate (as @Russell Brazil aptly noted) is granted via deed or will to a descendant, that individual has the right to occupy the property until he or she dies. Not much can be done, I'm afraid. I'm sorry to be a bearer of bad news.
@Joseph Bass If I understand correctly, the mom quitclaim the property to be used as a residence by family only. It is not to be used for other purposes or the quitclaim in invalidated. Charities are often bequeathed property in like manner...to be parkland or a school only, etc. Is the mom still alive? If she is not, then the property may need to go through probate (I guess, not an attorney). Title should know.