Best way for trio to hold title

DEAR BENNY: I live in Iowa while my sister and her husband live in Florida. We want to buy a home together in Florida. They will pay for 50 percent of the home and I will pay for 50 percent. We will all be listed on the deed. What is the best way to hold title to the property? It is our intent that should any of the parties involved die, anyone left should have a right to live there for the balance of their life. What is the best way to designate how the property transfers upon the death of the last party involved? --Mickey

DEAR MICKEY: I don't practice law in Florida, so my answer has to be general in nature. You should consult with an attorney who practices in that state. Oversimplified, I recommend that title be held as follows: sister and her husband as tenants by the entirety as to half of the property and as tenants in common with you as to your half.

This way, if you die first, your last will and testament will provide guidance as to how you want your half to be distributed. You could make your sister and her husband the beneficiaries, or you could decide to give your share to a third party. If either your sister or her husband dies first, the survivor of that marriage will own the entire half.

As for allowing the last surviving party to remain in the house, under my approach that last survivor will still own half of the property, and will thus be allowed to remain in the house until death.

DEAR BENNY: I saw a property advertised as a short sale for $150,000. I submitted a contract to purchase the property at the asking price. My offer was then countered by the seller/lender with an increase of their price to $175,000. When I expressed surprise to the Realtor, the response was that I should consider the short-sale process as more of an auction, with the initial asking price just a means to get the bidding started. This runs contrary to my understanding of contract law. Please shed some light on this please. --Joseph

DEAR JOSEPH: The law is clear that an advertisement is not an offer, but merely an invitation to make a bid.

Contract law requires three elements: an offer, acceptance of the offer, and consideration.

You made the offer of $150,000. The bank/seller had three alternatives: accept, reject or counter your offer. The bank opted for the latter. Now you have the same three choices.

Once there is an offer that is accepted, there must be consideration to make it a binding, legal contract. Usually, the earnest money deposit, regardless of how small, is that consideration. But, for example, if the seller takes the property off the market, that could also be considered "consideration" even if there is no earnest money deposit. ...CONTINUED

All rights reserved. This article may not be used or reproduced in any manner whatsoever, in part or in whole, without written permission of Inman News. Use of this article without permission is a violation of federal copyright law.