Posted by SedonaSam on December 07, 2009 at 09:43:14:
Yes there are tax implications as well as recording fees for a transfer of
deed. Just have them set up a land trust and make you a beneficiary. Be
SURE that you use a professional corporate trustee.
Tax implications for transfer of deed? - Posted by matt sabbe
Posted by matt sabbe on December 07, 2009 at 08:09:38:
I have relatives in financial trouble. They want to quit-claim the deed to their vacant land (paid off and worth about 100,000) over to me so that I can take a loan out against it for 40,000 which I will give to them. (They have credit troubles right now). So I’ll get control of the property and be responsible for the loan. They want me to “hold” the property for them until they can buy it back.
Is it as simple as that or are there tax implications and other scenarios I may not be aware of?
Thanks for the help.
Formalize deal to avoid trouble - Posted by John Merchant
Posted by John Merchant on January 12, 2010 at 24:08:50:
This deal sounds like trouble happening down the road if it’s not put in writing now with exactly what your and their obligations are, when they can buy it back and for how much, etc.
And I’d have a business lawyer do it so the agreement is done right and includes all that’s necessary.
Vacant land could be problematic.
Would you want to be stuck with this and owe $40k on it if they decide to walk and not redeem?