Legal Question in Real Estate Law in Massachusetts

real estate deeds legalities

i currently own 80% of a property and am trying to purchase out other owner(wants to be bought out) due to credit issues cannot obtain my own loan if a trusted family member purchases home and shortly after closing deeds entire interest back to me-deed not to be filed due to the mortgage will the deed be sufficient proof that they do not own house if any matters come up with them(creditors,ex husbands,death ,etc)-my bank said this was my option since one or more family members have pledged their support,or is there a better route to follow-bank also said to sign lease agreement showing me paying all cost (mort,tax,ins) with family members as it would make it so it would not effect their ratios or chances of getting their own loans in future


Asked on 4/07/09, 12:00 pm

1 Answer from Attorneys

Re: real estate deeds legalities

You have a few options but the first would not be a good one since, it could be deemed fraudulent. Likewise unless the deed is recorded it is no protection against your family's creditors.

You could sell to them with a lease back provision with an option to buy them out, this assumes of course that the lender is OK with that deal.

The other alternative is to have the family member buy the 20% interest and you buy them out over time.

Third option would be to buy the other party out over time based on the price now.

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Answered on 4/07/09, 12:35 pm


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