Profile picture for user75001245

Thinking of buying home for daughter and future son-in-law. Legal ramifications?

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 09 - US
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (5)

You'd have to talk to an attorney about the "legal ramifications," and also an accountant about the "tax ramifications."

There are several ways to go about it, and there's no one "best" way for everybody. What you might do, for example, is to buy it and sell it to them on a real estate contract; you'd hold the title, and at some point they could either buy it from you or not, in which case you'd then sell it off myself.

All the best,
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 09
Profile picture for wetdawgs
It depends on how you do this.

If you buy it all cash and gift it to them, you are likely to be liable for gift taxes.

If you pay the down payment and then they pay the mortgage (in their names), then gift taxes may be owed depending on the down payment.

If you pay for it all and let them live there, then you'll need to calculate fair market rent and consider that a gift.

In other words, there are many possibilities and there may tax implications.  Please talk with a good accountant with real estate expertise to give you guidance and your specific plans and the implications.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 09
Profile picture for sunnyview
It is a really nice offer, but I would not buy a house for them as an unmarried couple. If you are buying for cash, you can buy the house with your daughter only and then change the deed into both their names after the marriage.

If you are buying as a cosigner on the mortgage, I would reconsider. Cosigning can get messy if things do not go as planned and tying your credit to other people can cause big headaches.

You might also consider the option of gifting the down payment to the happy couple outright and allowing them to use that as a leg up for traditional financing in their own names. Be sure to check with a CPA about the tax implications of gifting a house or down payment.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 09
Congratulations on your decision to of purchasing a home for your family. Will you be paying cash and if not be sure to have their names on the Deed as this will allow me to refinance the home later. If you are paying cash its best to set up a living trust and them make the home a part of the trust for your daughter.
I can be reach via my profile for addition question. 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 09
You can buy a home fro anyone you want to. If they are on the deed they normally must be on the loan.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 09
 
Related Questions
Do I have to make offer through the agent that showed me a property?
Profile picture for Ryan Cook
Latest answer by Ryan Cook
13 minutes ago | 12 answers
I was defrauded by Century 21 agent
Profile picture for Michael Cubstead
Latest answer by Michael Cubstead
14 minutes ago | 82 answers
How do I find comps on my own for a different city?
Profile picture for Catherine Barden
Latest answer by Catherine Barden
1 hour 5 minutes ago | 2 answers
What is time length to wait for an offer to be answered?
Profile picture for Michael Cubstead
Latest answer by Michael Cubstead
3 hours ago | 5 answers
Buy house without SSN and ITIN?
Profile picture for Michael Cubstead
Latest answer by Michael Cubstead
5 hours ago | 6 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.