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Asked by Cherry Liu, Shadyside, PA Fri Aug 10, 2012

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Answers

4
Jerry Kisaso…, Agent, Mckeesport, PA
Sat Aug 11, 2012
I would just have all three parties, you, your mother and the seller, sign an assignment of contract. Check with the seller first to see if they are okay with that. If it's a bank owned property, forget it. They will likely not agree to an assignment. If that's the case, I would just cancel the current contract by one of the contingencies in the sales agreement (out clauses, like inspection). Then I would submit another offer in my name. If you do this, it is possible to loose the deal by someone else putting in an offer higher than yours.

Plan B could be to just follow through with things as they are, then, once your mother closes, she can quit claim the deed over to you. If you are unfamiliar with what a quit claim deed is, just Google it.

There's always ways to get things done!
0 votes
Jeffrey Benn…, Agent, Pittsburgh, PA
Sat Aug 11, 2012
Since this is really a legal issue I'd consult the attorney at the title company (the one drawing up the deed), to see what they require. Short answer: the names should match; you'll need an addendum to the agreement.

(Side note: are you under agreement at all? Is it day 15 since the offer, or since the agreement was fully executed and you went under contract? If you're negotiating repairs, make sure you're within the inspection period, especially with no other contingencies, or you'll end up buying it as is.)

Is there a "human" seller, or is it a foreclosure? If it's bank-owned, the bank may have special provisions about assignments (generally frowned upon, since sometimes they're "flopping" schemes).

In any case you'll need an amendment to the agreement. I just did one of these recently to add a buyer's wife to the contract (since she was going to be on the deed as well).

The name on the deed does indicate ownership, but it might not be the whole story. For instance, in the example above where a buyer added his wife to the deed, she would have had a spousal interest in the property whether she'd been named on the deed or not, due to the marriage.

(Side note again: to avoid future title issues, I always recommend putting everyone who has an interest in the property on the deed. I had a case once where it was impractical to have the wife sign everything. The marriage was disclosed on the agreement (e.g., "John Smith, a married person"), and the husband got a power of attorney to sign for his wife. Contrary to popular belief, husbands and wives can't legally sign for each other just by virtue of being married.)

In practice, title companies aren't always too upset about married couples not dotting all the i's and crossing all the t's, since the legal marriage sort of makes it all come out in the wash anyway. But non-married family members (not to mention unrelated business partners) get more scrutiny, and really should be done correctly to avoid legal/tax issues later.

There are four separate things: the sales agreement (contract), the note (loan), the deed (ownership of the property), and the mortgage (securing the loan by the property). The note and deed can have different names (e.g., two can have ownership, but only one be responsible for the loan), but the contract should match the deed. Since you're cash buyers, in this case all you have is a contract and a deed.
0 votes
Blair W. Coh…, Agent, Monroeville, PA
Sat Aug 11, 2012
If you used the Pennsylvania Association of Realtors standard agreement for the sale of residential real estate (and you probably did) there is a provision that you must have Seller's permission to do an assigned sale. Since it is a cash sale (no mortgage) you are probably alright just having deed and all the closing documents put in your name but it would be clearer if you, your mother and the Seller agreed to the terms (naming you as Buyer) in writing. It is always a good idea to consult a good real estate/tax attorney.
0 votes
x, , Pittsburgh, PA
Sat Aug 11, 2012
If I were your agent, I would have you and your mother sign an addendum to the agreement of sale to identify you as the buyer to the sellers and not your mother. All the parties involved in the sale need to know this change. You should also present proof of your funds to the sellers with the addendum.
0 votes
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