[WSBAPT] Rent-to-Own Agreement w/ Grandma

[Amy Goertz]

Listmates,

I have a potential client who wants to buy her 90-year-old grandmother’s home. 

About 10 years ago, Grandma (80+/- at the time) no longer wanted to manage her home and moved into an apartment with her sister. Client and her husband moved in Grandma’s house under an understanding of a “rent-to-own” agreement. The only “writing” to document the agreement are receipts created and signed by Grandma showing client’s payment of rent, utilities, property taxes, etc. House remains in Grandma’s name.

Client and husband want to get Home Equity Loan to remodel but they cannot since the home is in Grandma’s name. Grandma says she will give them the house or sign a transfer-on-death deed.

Client is willing to purchase the house but is fearful of a Medicaid lien upon Grandma’s death, which is only imminent due to her age and not any known health issues.

Any thoughts on how best to execute a sale to the granddaughter that will pass muster upon review?

Amy


Amy J. Goertz, J.D.
Goertz & Lambrecht PLLC
amyjgoertz at icloud.com <mailto:amyjgoertz at icloud.com> 

1.888.926.2607 phone
1.877.684.1627 fax

Address for correspondence:
2829 S. Grand Blvd., Suite 303
Spokane, WA 99203 

Additional office locations:
510 Bell Street
Edmonds, WA 98020

7418 East Helm Drive
Scottsdale, AZ 85260

Goertz & Lambrecht PLLC
www.goertzlambrecht.com <http://www.goertzlambrecht.com/>
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