How Can I Make This Work? Minor On Title...
I'm working on a deal with the grandparents of a minor. One of the minor's parents died of a drug overdose. Deed was in parent's name who passed away. Grandparents then hired an attorney who transferred title to minor.
There are renters in the house who have been there since before parent passed. They have been paying the rent, but grandparents are stressed because rent no longer covers mortgage, taxes, and insurance. They reach in their pocket every month for ~ $90-100, plua any miscellaneous expenses also come out of their pocket (e.g: new frig for $300 recently).
Grandparents, minor, and other living parent want to sell to me. But, obviously minor cannot enter into binding contract. Cost of legal work to retitle or guardianship is do-able, but any transaction would probably be shot down in review because of discounted price. BTW, house needs a LOT of work, but there is room for profit after work is done.
I thought about taking over the responsibilities and post-dating a contract and filing a notice of interest now, but want to make sure I purchase the property in the end.
Thought I'd check with others to see if someone had a better alternative.
TIA.
Greg
How old is the minor?
Will be 17 soon.
You can either do a guardianship or try to work out a creative solution that involves holding the property in trust until the minor can deed it over at 18.
John,
I'm confused. If the minor can't enter into a contract, how can they deed it into a trust?
What about the minor quit claiming the deed to the remaining parent or grandparent. Then you could do the deal with them as a buyer in due course. If the minor ever wanted to revert then they would be the ones to deal with it, not the innocent buyer that was not party to the quit claim.
I would ask an attorney as well but generally buyers who buy for value are protected.
[addsig]
You should check with an attorney in your state. A minor can enter into a contract in most states, however it is voidable my them until they are 18. Necessities are an exclusion, rent food etc. The minor could sign a deed to trust and find a way to keep the money tied up until they reach 18. If the minor cancels the contract the trustee can be ordered to refund your money. The key is to keep the money out of the minors hands.