Monday, August 23, 2010

I need real estate legal advice?

My husband's aunt approached us in April, asking us to purchase a house for her. It's the house she wants to retire in, but she currently owns 3 other houses and can't afford a 4th mortgage payment. She offered to put up $75k for a down payment; all we had to do was make the mortgage payment and xfer title to her in 10 years. We said ok.





We ended up renting the house from the sellers for June and July because escrow took much longer than expected. Escrow closed in August, so we only paid 1/2 months rent. The 1st mortgage payment wasnt due until October, so we had 45 days with no rent due.





3 weeks after escrow closed, his aunt calls and demands that we pay her all of the rent that we didn't have to pay for August and September. She said that if we don't pay her the rent, we need to leave and she will find someone else to buy the house for her.





Can she legally make us leave? The title is solely in our names. And we *NEVER* agreed to pay her any rent! What should we do?I need real estate legal advice?
If you are in sole title to the property she has no rights at all, especially if she gave you a gift letter for the $75,000 which specifies that the funds were a gift that did not require repayment (most standard lender gift letters specify this).





Technically, what she did was ask you to perpetrate loan fraud by taking out a 30 year loan when you would be transferring title to her 10 years into that note term. At the time of transfer, the ';Due on Sale'; clause would have kicked in and to be in compliance with the terms of the deed of trust, she would have had to refinance it anyway.





She doesn't have an executed rental agreement so you don't owe her rent. Congratulations, you just got a home!





She is not only dishonest, she is greedy and deserves whatever loss she takes. That said, to preserve family relationships, if possible, I would give her a 2nd lien position predicated upon your ability to negotiate acceptable repayment terms for the amount she advanced you on the sale.I need real estate legal advice?
what a nice aunt, glad mine isn't that nice. If you are the only ones on title you should sell it and pocket her 75k. That will teach her to bust your balls over rent.


Never ever do real estate business like this with family, it aways ends in disaster.
Once the deed to a property has been transferred, it is legally the property of the new person it title. There is nothing that can legally be done to reverse the transfer of ownership (as long as the deed was properly prepared, notarized, witnessed, and recorded).





If there was no rental agreement during the escrow period, then she can not come back to you NOW and demand any monies.





Looks like you are the proud owner of a home and your hubby's aunt is SOL.





And I agree, doing business with the family is like cutting off a finger.....Ouch!
You are legally entitled to the house but I think you need to rethink the situation you got into with her because it sounds like a nightmare. Good luck.

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