Real estate attorneys are advised because they would ask you the though questions to insure the peace is kept in the family in the event something goes sideways. Who owns the houses, what is your son's roll in the home, will there be a note and deed of trust between your son, and the family members, if it were to be sold later who gets the money and if equity how will that be split, or if no equity how will that be absorbed, who will be responsible for property taxes and maintenance? Just to name a few.
Getting these things in writing now verse later is always advisable.
Your son is very lucky to have such trusting and loving family members to help him buy a home.
At your service,
Certified Distressed Property Expert
So, gift the money early to avoid any issues with seasoning. If you don't, then you have to identify the sources of the fund by Gift letters and establishing relationships.
Ownership structure is also important. Since half of the purchase money is coming from you and half from his aunt, who will own the property? Make sure that you and his aunt have thought everything through completely. Seek professional advice as needed for legal, accounting and, of course, real estate advice.
This should not be a problem in terms of purchasing.
However, you need to check with the CPA on gift taxes, and with a real estate attorney about
title holding - because there are different types of title holding, and some might be more suitable than others in your situation. Also, estate advisor could help you in terms how to structure the funding - whether it is better to use your pension funds, IRAs or 401K, or a combination.
Finding the best way first is the way to go - and you are on your way by asking questions!
Best of luck,
Beachfront Realty, Inc.
You should also know the real estate market here is crazy. Paying cash is a nice option but your success is more about your price range and flexibility in your housing options than paying cash.
What's nice is I, like most Realtors can help you no matter where you live.
Contact me if you'd like my assistance.
Coldwell Banker Residential Brokerage
With an all cash offer, no problem at all. If the cash you are using will be used as downpayment and all the downpayment will be coming from you and his aunt, then he probably will not approved for a conventional loan. With FHA he can get approved.
Hope this helps
Suzanne said it best. This is not a problem, uness a mortgage is involved.
My question is whether or not the money from his aunt is really considered a gift or a loan.
Also, is the money from you considered a gift, or a loan?
You may consider whether you want to have the documents drawn up to have some or all of this money as a loan or whether or not you should have some ownership interest, and whether or not you and the aunt should also be on title with your son.
I recommend that you talk with a Real Estate Attorney and a Certified Public Accountant with respect to these issues, alothough there is no requirement that you do so..
When you consider the amount of money involved, the advice from a Real Estate Attorney and a Certified Public Accountant is cheap, in comparison.
Charles Butterfield MBA
Real Estate Broker/REALTOR
Cell Phone: (408)509-6218
Email Address: firstname.lastname@example.org