OfflineHi everyone,
I have a L/O that I'm working on. Here is the scenario. The house is owned by a woman who went to live with her son because of health reasons. Her son has POA. They (he and his mother) want to get the house out of her name and into her son's name. He (the son) was advised by his attorney to go ahead with the L/O and not the actual sale until 5 years is up (something to do with it being in her estate and Medicare). She is not in a nursing home. The 5 year timeline will be up in January 2014. Okay, here is the question. He wants to go ahead with the L/O. I have a very interested party that looked at it today and they are ready to lease. The son (POA) also gave me the above information today which leads me to the following question. If a L/O is done now, will it have to stay in his mother's name during the L/O period and be bought from the mother? Or is there a way to change ownership during the L/O period to get the house in the son's name?
Shirley
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
As long as the son is honoring the L/O then there shouldn't be a problem. I would guess that the deed will just be quit claimed from the mother to the son. The son cannot sell the house out from under the lessees, but I don't see an issue with it.
Cathy B
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Shirley,
I would consult with an attorney...
I don't believe you can change title of the property once the L/O is in place; even if the son has POA, it should be verified that the POA that is in place is a 'durable' POA, otherwise, the son may not be able to make any financial decisions, etc. for his mother if she was to become incapacitated.
Valerie
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Maybe a trust, change the beneficiary. Legal advice on here is worth what you pay for it. Consult your own attorney. Cheap insurance.
Hi Shirley,
I would write it in the contract. However I don'think there will be an issue. Let's us know the outcome.
"Don't tell me I can't, Tell me how I can."
Shirley, do not see an issue with whose name is on the title/deed. However, to be safe and legal, consult an attorney in your area. Some title companies have an attorney on staff-I would also ask that attorney. To me it is no different than me selling a turnkey property and financing the deal myself. Just because the owner of the property changes- the Lease option contract does not. My contracts have that clause in them, "I reserve the right to sell the property or the note at anytime with or without notice."
K. Michael Fishbaugh
Some of you will rebuild the deserted ruins of your cities. Then you will be known as a rebuilder of walls and a restorer of homes. Isaiah 58:12
Hi Shirely move forward ever thing looks good to me.Everone seems to be open and all know whats going on and thats great, thats how I did with my Mom we were and open book nothing hid every one knew what was going on all the time between her and I as well as the legal team, transparence( sp) all the way, its really nice.Jim
jbischoff