[look 171]

Originally Posted by john70t

(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.

Title search for sure.

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...

This could happen with every real estate transaction, right? I worry about this the most.

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

No, I never got involve with that. I know better.


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.

Why can a property owner dump their property due to financial issues for a quick sale (just a question, not the case here)?

I am not sure if I understand? being the contractor on the property 1 1/2 year ago, and have had previous business dealings with an owner, I just screw myself out of a legit purchase of the home at asking, or at a price he's dumping?

Let just say the market value is 700k and it list for 570 due to the amount of work needed to make it habitable. If you offer 570k and get it, then that's fine. But if I but it at that price, I can get into trouble later should something surface because I have had business dealing with them?


Every new sale will have a bank appraisal and/or by the city, and them boyz loooove to catch those tax cheats. Yessuh.

What happens to all those depress / destroy properties people buy at a fraction of market value and fixes them for profit, rent, or live in themselves. The IRS or who ever can get at them for back taxes?

BTY, thanks for the quick answers.