Legal Question in Real Estate Law in Arizona
real estate purchase
If I provide the closing costs and earnest money in a purchase of a house, but I am not involved in the financing, do I have to be one of the parties in the real estate purchase contract?
1 Answer from Attorneys
Re: real estate purchase
It sounds like you are making a gift to the purchaser to enable him/her to buy the house. That is perfectly legal, but the purchaser is obligated to disclose this to his/her mortgage lender. You do not need to be a party to the purchase contract or any of the closing documents.
If you do not intend to make a gift (if it is your expectation that you will be repaid) then you need to hire an attorney to assist you with the proper documentation of your loan and, again, this fact would need to be disclosed to the purchaser's mortgage lender.
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