Home Buying in 94520>Question Details

Vanessa Arau…, Home Buyer in Tampa, FL

I am buying my step-brothers condo and both of our banks accepted the offer, should I proceed?

Asked by Vanessa Araujo, Tampa, FL Mon Apr 2, 2012

This will be an investment

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If you proceed make sure you review the HOA insurance coverage's and also get an H06 Condo insurance policy to protect your personal property and liability, if your going to rent the Condo to a tenant you will need a Landlord policy and have the tenant get a renter's policy and name you, as the owner, as an additional insured. This will give you a layer of liability and loss of rental income in the event of a claim.
0 votes Thank Flag Link Fri Oct 31, 2014
Totally agree with Christy Brock's answer, below. Again, assuming a short sale, all parties involved in this transaction - your stepbrothers and all agents - must sign disclosures that you have an "arms length" relationship. I would strongly encourage you to discuss this situation with your agent and your bank. Do not hold back on any details. No one, knowledgeable in short sale transactions, would allow you to proceed with this purchase without full disclosure of all motivations and relationships. There is too much at stake not to reveal all the facts.

Patricia Jewett
Trans-Action Realty 500
Reno Nevada

775-857-1225
realtor@teamjewett.com

http://www.shortsaleinformationcenter.info
Web Reference: http://www.teamjewett.com
0 votes Thank Flag Link Wed Apr 18, 2012
If this is a short sale (and it sounds like it is because you mentioned his bank accepting the offer) then you should read all paperwork very carefully. Generally speaking, the transaction you are describing is not allowed because of the arms length clause in 99% of short sale approval letters/processes. The arms length clause basically means that the parties are unknown to one another. In addition, if the thought is for your step-brother to "rent" from you after close of escrow, that too is generally not allowed. If you decide to proceed, and the approval letters or other documents contain clauses that prohibit your situation, then you are committing fraud.
0 votes Thank Flag Link Mon Apr 2, 2012
We live in two different states and the property is a vacation condo and someone else will be renting it out. I have spoken to a lot of people and the bank knows that we are step brothers. I would be buying his condo for $40,000 which would be paid out in less than 2 years. and if the banks know and they both accepted it how would it be fraud?
Flag Mon Apr 2, 2012
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