It sounds like the "auction" just wants to make sure there are no loop holes that will get you out of buying this property... especially since your son is the one that won the bid. If he is the purchase agreement you can count on his name being on the Title. Best bet is to have it removed, like everyone else said, to avoid any confusion at closing.
The term "first-time home buyer" doesn't always mean someone who hasn't purchased a home prior.
Example: According to the IRS, if you owned a property, but have not lived in it (aka your principle residence) in the past three yearsâ€¦ you still qualify.
hope everyones advice has helped..
all the best,
ULTIMA Real Estate
The reason I bring this up is because you immediately buy a home, and then your son will immediately be buying it from you, and that situation is called a "property flip", which if it's done properly can be just fine - for example if you aren't selling it to your son at a price above what you paid for it, then that situation would be a lot more comfortable to a lender than if you were selling it to your son at a higher price than you paid.
So if part of your plan *HAS* to be that your son can purchase it from you right away, you'll want to make sure his situation is fully pre-approved before you close on the home with cash.
If your son is not going to be on Title, why even have him on the purchase agreement? If he's on the purchase agreement, when the deal closes, he will be on Title. Take him off the purchase agreement and you won't have to 'worry' about any possible confusion in the future.
Either way, if there is a first time home buyer program he would like to qualify for, you would need to read the details to figure out how to qualify. The definition of first time buyer is not universal and I could see your situation being very grey.