Legal Question in Real Estate Law in Louisiana

Re: Would like to sign over property to Father

While you haven't said it specifically, it seems like you probably have an existing mortgage on the property in favor of the bank to whom you owe $10k. Almost every/any buyer will require a clear title to the property upon purchase, which will mean that the bank's mortgage will need to be paid off and cancelled. This means, effectively, that you will need to contact the bank and get a "payoff" on your loan just prior to the closing in which you sell the property. In other words, your question indicates that you "realize that we will still be finacially liable for any bank note payments, capital gains taxes, etc." but, assuming you have a mortgage, the bank will almost certainly insist on being paid in full at the time you sell the property. Thus, there will be no further bank note payments after selling and your net profit from the sale (sales price minus bank mortgage payoff and closing costs) will be what you take away after the sale.

As far as your deal with your father, I see no problem with you selling the property yourself and then giving him the net proceeds after closing OR, if you cannot go to the sale, then giving your father a special power of attorney to sign the closing documents on your behalf and accept the net proceeds. What you and he do with the money after that is really up to the two of you (and, to the extent of capital gains taxes, etc., the IRS).

Have you considered giving your father a "second mortage" on the property and paying him off over time for the money he's going to loan to you rather than selling the property? You could execute and record a mortgage in favor of your father just like the bank has done, giving him more legal rights to your property than just a handshake but maintaining your ownership in the property as long as you pay him off and/or he does not foreclose on you.

Good luck...