Ok money board, I need some advice. My wife and I are currently in the final phases of purchasing our first traditional home. Currently we live in a newer(2012) Mobile Home (yes I know, but at the time it was the best option for our situation)which we own free and clear. The MH is on a family members' property, and the family member wishes to purchase it from us for $1000.00 per month for 36 months as a rent to own type situation.

My question is how do I go about doing this so that both parties are protected legally and tax-wise

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Posted by RiverRoadTiger

River Parishes

Member since Aug 2006

659 posts

Posted on 11/8/15 at 11:42 am to triggs85

Go see a good notary. The title should be transferred. Maybe you can remain on title as lender. Or some sort of mortgage can be drawn up. Cancelling it when paid in full.

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Posted by yellowfin

Coastal Bar

Member since May 2006

97615 posts

Posted on 11/8/15 at 12:31 pm to triggs85

Going to need a lease purchase agreement

Not sure how the tax side should be handled

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Posted by Poodlebrain

Way Right of Rex

Member since Jan 2004

19860 posts

Posted on 11/8/15 at 1:28 pm to yellowfin

quote:
Not sure how the tax side should be handled

Installment sale.

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Posted by stout

Smoking Crack with Hunter Biden

Member since Sep 2006

167113 posts

Posted on 11/8/15 at 7:21 pm to triggs85

Since it is on land you don't own I doubt it is immobilized so it isn't yet part of that property as an improvement which makes bond for deed not an option. However, it is titled property and you can get a notary to prepare a promissory note with the VIN info but you keep the title and upon completion of the final payment you sign the title over just like a finance company does on autos. At least that seems like it would work. If you give them the title before final payment, and they stop paying, you will have a hard time getting your property back.

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