Expert: Dick Dennis - 5/24/2008

Question
Hello Dick,
I would like to sell the deed to a property that I gave a lie estate to my uncle. Is it possible to sell the house to a investor, while my uncle lives there with his life estate?
Thank you!

Answer
Yes, it is possible to sell a house encumbered with a life estate, BJ, but would YOU be willing to buy a house with someone else having the right to stay there for the rest of their life?

Unless you are an investor, chances your answer is negative. But if you were willing, you would expect the selling price to be way down to compensate for the lack of use of the property and the inconvenience. You would have to constantly check the condition of the property even though you are not able to collect any rent and you must pay the property taxes and any mortgages.

However, if the beneficiary of the life estate does not maintain the property then you may have the life estate cancelled . . . with an attorney, of course.

So, in all, BJ, chances you may never find anyone interested in buying such a property especially in a buyer's market when buyers everywhere have all kinds of properties from which they can choose . . . and none of them are encumbered with a inconvenience of a life estate.

If you should find someone interested in buying such a property, then make sure you consult with a REAL ESTATE attorney to protect your interests. I do wish you well.

Dick Dennis