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Grant deed & carry note

BayHouse Credit Forum: Real Estate: Grant deed & carry note
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Anonymous

Wednesday, February 23, 2000 - 12:03 pm Click here to edit this post
My parents and my Aunt are going to "grant deed" my grandparents house (which they co-own with a clear title) to my wife and I. They are also going to carry the note. We've had the home appraised at $125,000 and are going to negotiate an interest rate around 6%. We've got a very sweet deal, but we are not sure how to proceed in terms of required paperwork and legal documents. Any advice would be helpful

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Christine Baker (Admin)

Wednesday, February 23, 2000 - 03:34 pm Click here to edit this post
Real Estate is regulated by STATE and LOCAL laws.

You forgot to mention where you are. Sometimes legal or code requirements apply to EVERY sale.

Escrow might be able to do all the paperwork for you.

There is a potential TAX problem:

** There are minimum interest rate requirements for RELATED parties **

Be sure you talk to an accountant or read and UNDERSTAND the IRS PUB on that issue. Your parents COULD be subject to interest income that they won't get.


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