Trulia Fort…, Other/Just Looking in Fort Lauderdale, FL

Can a property be sold at a discount to a family member?

Asked by Trulia Fort Lauderdale, Fort Lauderdale, FL Mon Feb 11, 2013

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5
Chad Gray’s answer
Trulia,

Thanks for the opportunity to help you understand real estate better!

When it comes to a traditional sale (not a short sale or foreclosure), where the seller either owns the home outright or is not in default on their mortgage, their home can be sold at any price to anyone willing to pay the price. This rings true to the property being sold at a discount to a family member as well.

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Chad Gray PA | Realtor
Luxury Living Fort Lauderdale
Coldwell Banker Residential Real Estate
754-300-6040

100% of clients rated our service as "EXCELLENT"!
http://luxurylivingfortlauderdale.com/what-clients-are-saying/

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0 votes Thank Flag Link Mon Feb 18, 2013
I agree with all 3 agents below me. And there is one more situation they did not describe.

A. If you own out right (does not owe anything), you can sell it at any price you want...make money or lose money, its your choice.
B. If bank owed, and you are making a short-sale it must sale for the amount the lender determines they need to break even and let you off the hook. In this case it must be sold to someone you have no relation to (arms lenght transaction)
C. If bank owed, but you have some equity on it, then you can sell at any price you want to any family or friend as long as it is enought to pay of your debt/mortgage at closing.
Hope this information was helpful.

Tony Vega
La Rosa Realty of Kissimmee
0 votes Thank Flag Link Mon Feb 11, 2013
Hi,

A property can be sold to a family member any amount both feel is a fair price.

The only time I can think of that there would be a problem is if the house is a "short sale". With a "short sale", there are documents that must be signed by all parties saying that the buyer and seller have no connection/relationship to one another. This is called an arm's length transaction.

If you sell to a family member for a very low dollar amount, just make sure you check with an attorney and a financial advisor to be sure that there are no tax issues that may come up.

Good luck, I haop it all works out well.
0 votes Thank Flag Link Mon Feb 11, 2013
IF you are talking about Short Sale: the sale has to be at arm length...
0 votes Thank Flag Link Mon Feb 11, 2013
If you own the place you can sell it to your family member for whatever you want! A lot of homes are sold this way - basically off the market sales.
0 votes Thank Flag Link Mon Feb 11, 2013
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