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How easy is it to change persons during an offer?

My question is, how easy is it to change the names?  We have not closed yet. 
My parents made an offer in Cash on a house to be deeded to them.  Now we want that offer to still be in cash but made by me and deeded to me.  do we just tell the realtor and they tell the bank or whoever?

Cash is Cash.  Only I will be the one purchasing instead of my parents.
  • December 06 2010 - Peoria
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Answers (8)

It sounds like your parents are no longer in an offer but a contract. Therefore , they are obligated to the terms of the contract unless they are able to negotiate otherwise through an addendum to amend the contract.

In this case, the addendum would be an assignment. If there is verbiage in the contract that does not allow an assignment, you'll have to wait until the transaction has closed. Then you can have title help you transfer title to your name with whatever terms you agree to with your parents.

If the contract doesn't restrict an assignment, you will want to send your proof of funds along with the addendum to assign you to the contract.

You may also want to consult with a real estate attorney or CPA about any possible legal and tax ramifications.

  • January 02 2011
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Profile picture for Blue Nile
It appears to me that "gift tax" for your parents will be an issue either way.
Call the IRS at 1(800)tax-1040 to discuss it with them.  They are there round the clock 365 days a year to help understand the tax issues and assist people to file correctly.
  • December 07 2010
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If you're attempting to buy a bank owned or short sale property, the lender will insist on having an 'arm's length' buyer. They won't play along with a 'straw buyer'. So again, Consult with an attorney about the legal and tax ramifications, and then consult with your buyer's agent. Then you can make an informed decision.

Best of luck!
  • December 07 2010
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Advice to quitclaim is right on.  Easiest way to do it.  Don't mess with assignment.  Consult an attorney and/or accountant for potential tax issues.
  • December 07 2010
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Draw up an assignment and see if the seller will sign it, I can't imagine why they would not. If they say no just let your parents buy it and then the attorney can draw up the document to transfer it to you and record it. Pretty simple either way since it is using cash. If a lender was involved it would be more trouble.
  • December 07 2010
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The real estate contract you used should have a section that tells you whether the contract can be assigned to someone else. More than likely the box was checked that it cannot be assigned. This doesn't mean you cannot discuss it with all parties involved and get it assigned, but it does mean that the seller doesn't have to allow you to assign it.

If this is a short sale or bank-owned property I would strongly suggest you don't tamper with the deal you have executed. With regards to short sales lenders are on the lookout for fraud. They don't like to see assigned contracts. They have all sorts of rules and expectations that won't necessarily make sense to you, but they will enforce them nonetheless. You don't want to make the seller's lender even slightly uncomfortable. Just close, quit claim it, and you're done.
  • December 06 2010
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I would not recommend doing that. Just let your parents close on the purchase and then have a title company record a Quit Claim deed transferring the title from your parents' name to your name.

You might also want to discuss this with your Buyer's Agent. You DO have an agent representing your interests, don't you?
  • December 06 2010
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What you're talking about is called an "assignment".

Ask your agent to draft an addendum assigning the contract from your parents to you.  Your parents will sign it.   Provide proof of funds from yourself to purchase the property, and most Seller's won't have a problem with it.

Good Luck....
  • December 06 2010
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