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

[Josh Grant]

You can do a sale (either for cash or financed)  for the amount of a written appraisal and of course the net proceeds need to be paid to grandma.  There won’t be a lien.

Joshua F. Grant

P. O. Box 619
Wilbur, WA 99185
509 647 5578

From: Mike Winslow 
Sent: Thursday, May 09, 2019 1:17 PM
To: 'WSBA Probate & Trust Listserv' 
Subject: Re: [WSBAPT] Rent-to-Own Agreement w/ Grandma

Recap the prior payments that would be credits toward purchase, then write up a PSA with these prior payments reported as Down Payment or Purchase payment to Grandma paid directly to her. Close as a conventional sale with title insurance and escrow, pay the excise tax and treat as arms-length transaction.

 

Transfer on death deed will no accomplish your goals since that will not vest title to allow lender to take security interest now.

 

Michael A. Winslow

1204 Cleveland Ave.

Mount Vernon, WA 98273

Ph. 360-336-3321

Em. Mike at winslegal.com

 

This message is from an attorney, so it’s confidential. If you are not the intended recipient, it’s too late to stop reading this message, but you may not use it for any improper purpose. Huge Disclaimer available upon request.

 

From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Amy Goertz
Sent: Thursday, May 09, 2019 12:44 PM
To: WSBA Probate & Trust Listserv
Subject: [WSBAPT] Rent-to-Own Agreement w/ Grandma

 

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 

 

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

 



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