Agent

Home sale between family has benefits

Seller financing offers great investment, easy financing

DEAR BOB: I am buying my first home in the next couple of months from my aunt and mother. They're inheriting my grandmother's home, but neither of them wants to keep it. What is the best way to go about this family purchase? --James M. DEAR JAMES: Your aunt and mother first need to obtain marketable title from your grandmother's estate. This is very important. The reason is their adjusted cost basis is the home's market value on the date of grandmother's death. Purchase Bob Bruss reports online. If they sell the house to you shortly thereafter, for the same market value, they will owe zero capital gains tax. Of course, as a prudent buyer, be sure a reputable real estate attorney or title company handles your purchase and you obtain an owner's title insurance policy showing you acquired marketable title. If the house is free and clear with no mortgage to be paid off, you might ask your aunt and mother if they would like to finance your mortgage so you don't have to obtain a mortga...

Comments