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-   -   Realestate Landcontract (https://www.askmehelpdesk.com/showthread.php?t=337624)

  • Apr 4, 2009, 12:10 AM
    kathkrle
    Realestate Landcontract
    I have a rental, with a mortgage

    I would like to sell it to my son on a Land contract.

    Should I set this up as an LLC first, under a different name?


    I can I sell it to him for $1000.00, he takes over the payments?

    Would he qualify for the new tax credit that is out there for new first time buyers?

    Could he keep it rented out as well?

    Would I also need a quick claim deed?

    He does not have good credit.

    Thanks
  • Apr 4, 2009, 06:31 AM
    excon

    Hello k:

    You're going to need the services of a real estate attorney...

    If you do it WRONG, the bank will call in your loan.

    excon
  • Apr 4, 2009, 07:22 AM
    Fr_Chuck

    First no, since he has not "bought" the house no tax credit, no transfer of deed, the house is not actually bought till the transfer on a contract for deed.

    You could in theroy, sell it to the LLC on a contract for deed, which would then sell it to him on a contract for deed. But since he could not hold you liable personally if you refused latter to do the deed, it would not be a legally smart thing for the buyer to do.

    You need to just sell it to him on a contract for deed personally, or have the LLC get a new mortgage to buy the property.

    The issue of a LLC for a sale between family is a large red flag of some issue

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