CAN YOU SAFELY SELL A PROPERTY TO A FAMILY MEMBER?
Blood is thicker than water goes a popular maxim. The premise for this saying cannot be more accurate than when it comes to selling a home to a family member (extended or immediate). It is important to note that selling a home is often difficult when taking all involved factors into account. However, when the buyer is a relative, this may even make it more complicated. If the individual feels he or she should be provided some kind of undue considerations as a family member, then the dealing may fail before it begins. Naturally, close relatives often feel that they should be given special consideration because of the relationship they have with the seller. While this may be true if the property were a gift or being sold so the relative’s family may prosper, most of these transactions are for a pricing that assists the seller in either purchasing a new home or for other financial reasons. It is usually best to contact a real estate lawyer to assist with all the steps in selling the property.
Keeping the deal strictly on the legal side without emotional entanglements is important when selling to a relative. Additionally, it may be essential to work with the buyer the same as if he or she were just any customer. Giving him or her documents through a broker or real estate agent often cuts down on conversations about a lower price than the market would suggest. When the family member is from the extended portion of relatives, this is an easier manner in exchanges for the real estate deal. However, if the individual is a closer member of the seller’s family, some distance is usually recommended.
Legal Frameworks & Steps
There is no gainsaying that selling to family members is often complicated due to the existing relationship already in place. In a more complicated situation of selling a house or landed property, and the matter is often too difficult to pursue without assistance of professionals. This means that certain steps and tips should be used to avoid the issues that may arise if the transaction goes sour. Legal problems may arise when selling a house to relatives, and if for no other reason that the possibility of negative legal consequences, it is imperative the deal completes correctly. One step to accomplishing this is to ensure the deal is in writing through a contract or agreement (every detail must be well documented and formalized). This is the same as most other transactions of real estate sales. There are various documents that must be filled out, signed and filed to the appropriate officials (nothing must be overlooked or done in the “na we we” manner). These documents have certain terms that may prevent conflict in the future and prevent the possibility of trouble for the seller.
In order to ensure the deal is legal, various actions must be completed such as tax liabilities and other possible consequences of not disclosing issues with the house or land. All legal formalities should be strictly adhered to in order to prevent possible penalties. In most of these circumstances, a real estate lawyer should be hired to assist. A trusted lawyeris often better than an ordinary estate agent as they may require a greater amount through a commission of the sale. A lawyer would be able to do all due diligence. Other professionals that may be contracted to handle the transaction are Registered Estate Surveyors and Valuers.
Inspection &Third-Party Involvement
When selling a home, it is important to ensure the property is inspected even if it were to be bought by a relative who used to know the property very well. Things sometimes change very fast with landed properties. An inspection will provide a list of issues, what needs to be repaired and any possible complications with the house or land. Defects may be revealed in this manner to include possible other problems such flooding or physical damages. This also provides the relative with a list of information about the property to ease the worry over what could be wrong with the house. The conditions of the deal are clear as to what is provided in the sale. When the transactions are completed with full disclosure, this relieves the seller from liability of accidents andincidents in most situations or even false sales arising from non-full-disclosure. Once again, even if the property is to be bought by your child, let there be an inspection before the consummation of the transaction. It is also important to involve another family member. This family member should witness from start to finish the entire process of transaction. Beyond legal considerations; should issues arise from the sale of the property in the future, the witness may be the necessary arbitrator.