Legal Question in Real Estate Law in New Jersey

Anonimity of money donor?

Hello,

I am interested in buying a house and would like to know if you could answer a few questions for me regarding this. I have some money of my own, but was thinking of accepting a relatively large gift (donation) from a relative, to use toward the downpayment. I would get a mortgage for the remainder. Could you tell me if it is possible for the donor to remain relatively anonymous? I am told that I may be required to file papers that identify the donor, give his social security number and other personal information, etc. Is this true? And what if I were to buy the property in cash, without a mortgage? Would I then be required to file paperwork as to the origin of the money? Any information that you can give me would be greatly appreciated.

Thanks,

Joe


Asked on 8/31/04, 2:26 am

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: Anonimity of money donor?

Most mortgage companies, if a gift is to be used to provide a part of the purchase price, require some documentation from the donor of the gift, to verify that no additional lien will be filed against the property. I suggest that if the donor wants to remain anonymous, the funds be placed in your account prior to making the mortgage application. If you purchased for all cash, no one needs to know how the funds were acquired, unless the term "cash" actually means dollars and the amount is more than $10,000, due to IRS reporting requirements. If assets are transferred (such as by a check) no reporting is required.

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Answered on 8/31/04, 10:36 am


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