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john70t john70t is online now
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Join Date: Aug 2001
Location: midwest
Posts: 40,339
(Not an attny. There are a lot better RE minds here, and the concensus is pretty strong against...)

First, any property transfer ideally should be a clean break.
Doing a title search first to ensure no easements, encumberances, land-use rights, etc. exist so you can call the property your own at conclusion of the sale. All kinds of skeletons can pop out out of the closet, and have, and everybody ends up geting a laywer.

California uses the weaker Grant Deed, instead of the Warentee Deed used elsewhere, so if there exists a problem with a claim of Title, the buyer could be on the hook as well as the seller.
More here: Property Deeds - Warranty, Grant, Quitclaim

The Uncle could say "everything's gravy look here's the judgement!", but a higher court or another unknown factor or document could surface later on.
Cali has strong renters rights, especially for the poor and disabled and...

As a financial prospector removed from the situation, you might not want to get too deeply involved in family affairs.


Second, any property transfer ideally should be an "Arms-Length" transaction.
It's been listed on the MLS, the buyer and seller are strangers, and everyone gets a chance to bid.
The selling price is what the fair market will bear.

That means no selling to your cousin (or your contractor) for $50K, who then claims "fair market value" for the purpose of reducing property assessment and transfer taxes to that valuation.
Selling below market value won't work.
Period.
Every new sale will have a bank appraisal and/or by the city, and them boyz loooove to catch those tax cheats. Yessuh.

Last edited by john70t; 07-06-2013 at 12:21 AM..
Old 07-06-2013, 12:16 AM
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