OfflineHello everyone my name is James and this is my first post on here. I am new to the real estate investing community and am looking for a little guidance. I just signed a "Contract for Deed" to purchase a piece of lakefront property. (I'm actually buying this property from my mother.) I drew up the contract with the assistance of legal software and my mother is carrying the note. It is my responsibility to file all of the paperwork. We have already signed the contract and had it notorized, but I'm a little lost as to what my next steps include in order to make this all legal. I know that I have to take the signed contract to the county offices and file it, but do I need to take the deed to the property with me also? Also, what do I need to do to have the deed changed from my mother's name to mine?
I appreciate any assistance that anyone can give me. I have a couple other properties that I'm looking at and I already have a few buyers in line for some houses that I might buy, so I'm really trying to make sure that I know how to do all of this and be completely legal at the same time. Thank you.
I need help with my next steps - Please
Posted on: Tue, 12/27/2011 - 03:38
I need help with my next steps - Please
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- by jhstevens
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James, a few key things to consider in your purchcase. You mentioned a Contract For Deed...this is generally considered a special purchase strategy often done when the buyer is taking the project without paying off the underlying mortgage. From what you described my thoughts are.
I would get an attorney and a title company involved. The title co is a great resource which will help you with the purchase/recording/title issues usually without any money up front.
You do not record the contract for deed generally. Since you do record the deed then yes, you need to get that prepared if you are ready to transfer title. Before doing that i sugges you do title searches to assure that you dont end up buying a property which is embroiled in a lawsuit or liens, etc which you might inherit the baggage...not likely but need to check first. Again the title co will do that seach and give you a preliminary title report, or "prelim" (as referred to in most areas). They can also help interpret this for you.
From what you said I am guessing you need to get a regular, state approved, purchase and sale agreement filled out and signed by both you and your mother. If you need help with this consider offering a seasoned real estate agent in that area a little stipend for helping you out. Well worth getting their experience.
If you enlis the help of professionals the costs are usually well worth it compared to the cost of bad mistakes.
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down the road I buy all or part of the notes...Paul has the best advice above, title companies can do title searches and a lawyer can handle the transaction for a minimal fee. PM me for more info on the note if you think she would be interested.
Barbara