QUESTION
I want to know if an Attorney can help in the sale of a property, by doing all the paperwork forms involved in the sale of property in lieu of Agent?
Asked on Aug 24th, 2015 on Residential Real Estate - California
More details to this question:
Hi, We don't want to go through a Real-Estate Agent, since the seller and buyer are known and much other than paper work needs to be done. No inspection, no advertising, no viewing, etc.... The seller (my aunt) is going to sell me her house at the price she purchased it a few years back and do a gift of equity for the difference in market price versus selling price to me and my wife. We believe she can do a gift of equity, Lifetime Tax limit of $5.43 million lifetime gift exemption Annual Gift tax exclusion amount of $14,000 to as many individuals as one likes. If one gifts more than $14,000 in one year than the amount over is subtracted from the lifetime amount of $5.43 million per individual. Based on the above assumption than she would not have to pay any taxes on the gift of equity? However, her lifetime limit would be reduced by the amount over the $14,000. My intent is to use a lawyer to do the seller transactions, so that she feels more at ease! Thanks,
2 ANSWERS
Estate Litigation Attorney serving Redlands, CA
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Your aunt will most likely not have to file a gift tax return if she sells the property to you under these circumstances. A buyer and a seller can agree to any sales price that they wish, and there is no gift of the excess value of the property over the sales price.
You're not required to use a real estate agent for this transaction. You can have an attorney draft the purchase agreement and the disclosures required. You would still go through an escrow agent and use title insurance.
Answered on Aug 29th, 2015 at 1:25 PM
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Yes, there is no need to use a realtor in your situation. I have handled a number of transactions like this and typically still work with an escrow and title companies, but would handle the drafting of all of the necessary legal documents. Feel free to contact me if you would like to discuss.
Thanks,Jon
Answered on Aug 26th, 2015 at 4:49 PM