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Buying or Selling a Home/selling to a family member

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Expert: - 6/18/2009


Question
Hello, I would like to sell my house to my brother.  It's current value is approx. $450,000, but I would like to sell it to him for what I owe which is $350,000.  He will need to get a loan, but can you tell me how to do this at the lowest cost to us?  I am a Realtor in Massachusetts, but the house is in Arizona.  If he gets a loan from a bank, do I just quit claim it to him and then he can get it registered or is it more complicated?

Answer
Hello Carolin - Please accept my apology for the late reply. The least expensive way is to use an Escrow/Title Company and tell the escrow officer your terms and they will create escrow instructions which will act as a contract. Second, when financed, the lender will issue stipulations to funding typically requiring that you as seller obtain a seller's title insurance policy; the buyer will be required by the lender to purchase a buyer's title policy also referred to as an ALTA (combination) policy to protect the lender, and a Termite Inspection. Contact Lisa Fletcher at Fidelity National Title Ins to assist you with the process (480) 214-4500) and tell her I referred you. Simply explain you will be selling the home for-sale-by-owner and using escrow instructions. Ask her to explain her process and fee. Ask her to provide you with an estimated settlement sheet so you can review your total costs of sale. When the buyer needs to obtain financing this increases the sellers costs due to the lender's requirements. There may also be some additional charges by the lender depending on the loan type but again this is usually miniscule in comparison. If this were a cash sale you could use the quit claim and the conveyance could take place for as little as the recording fee ($50) and any other minor incedental charges. So with financing there is significantly more expense to the seller and buyer when meeting the financing guidelines. I hope this as answered your questions. If you need further assistance please don't hesitate to contact me. You may also reach me at toddcmenard.com or on Facebook. - Todd

Buying or Selling a Home

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Todd C. Menard

Expertise

National Association of Realtors Code of Ethics and Professional Standards * Contract Questions: 05/05 Arizona Real Estate Purchase Contract, Exclusive Buyer Broker Contracts, Listing Contracts and associated contract documentation as it relates to boilerplate, covenants, contingencies, procedures and procedures. * ARMLS Arizona Regional Multiple Listing questions * Real Estate Professional Standards and Practices, Ethics, Obligations, Duties * Agency relationships in Arizona, Procurring Cause * Questions typicaly arising during the listing period * Questions typically arising during the escrow period * Questions about working with a real estate agent/REALTOR * Questions Related to New Home Builders

Experience

National Association of REALTORS Board of Director (2011) Arizona Real Estate Salesperson License (1991-1995), Arizona Real Estate Brokers License (1995-Present), Arizona Association of REALTORS Board of Directors (2008-Present), Arizona Association of REALTORS Professional Standards Committee (2008-Present), AAR Certified NAR Code of Ethics and Professional Standards Instructor, Southeast Valley Regional Association of REALTORS President-Elect (2011) Southeast Valley Regional Association of REALTORS Board of Directors (2008, 2009), Southeast Valley Regional Association of REALTORS Grievance Committee Chairperson (1998-2007), Southeast Valley Regional Association of REALTORS Bylaws Committee (2008-Present), Southeast Valley Regional Association of REALTORS Education Committee (2008), Arizona Association of REALTORS Forms Committee - Residential Purchase Contract (2005), Arizona Association of REALTORS Forms Committee - Residential Rental Agreement (2008), Arizona Association of REALTORS Forms Committee - Buyer Broker Agreement (2009), Arizona Association of REALTORS Presidents Advisory Group, Road to Professionalism (2009), Arizona Association of REALTORS GRI Curriculum Review Committee (2009), Arizona Department of Real Estate, Commissioner's Education Advisory Group Sub-Panel B (2010) Arizona Department of Real Estate, Commissioner's Statute and License Review Committee (2007)

Organizations
National Association of REALTORS, Arizona Association of REALTORS, Arizona Real Estate Educators Association (AZREEA), Arizona Regional Multiple Listing System (ARMLS), American Notary Association, Southeast Valley Regional Association of REALTORS (SEVRAR), Southeast Valley Regional Association of REALTORS Women's Council of REALTORS (2010-Present), Phoenix Association of REALTORS (1994-2000, 2005-2009), Scottsdale Association of REALTORS (1994-2000, 2005-2009), Maricopa/Glendale Association of REALTORS (1994-2000, 2005-2009),

Publications
"Real Estate in 2008"- Lifebushido Publishing (Contributory Author), SEVRAR Magazine, Internet Crusade, RealTown ListServe, Blogger.com, Active Rain

Education/Credentials
- AAR Certified Ethics and Professional Standards Instructor, Graduate REALTOR Institute (1993), Certified Negotiation Expert (CNE), Over 100 Hours of annual real estate continuing education, Annual Ethics and Professional Standards Development Workshops as required by the National Association of REALTORS, Approx. 36 hours of NAR Code of Ethics training annually, Numerous IDW, Seminars and Train the Trainer programs, Business Management Degree - 1981

Awards and Honors
2009 REALTOR of the Year Award, Southeast Valley Regional Association of REALTORS (10,000+ Members), Double Platinum Production Award ($45,000,000 Sales Volume)- Keller Williams Realty Int'l (2001), Top 15 Sales Production Keller Williams Realty International (2001), Top 5 Sales Producation Keller Williams Realty Southwest Region (2001), Top Recruiter Award - Keller Williams Realty Int'l, SW Region (2002), Who's Who in U.S. Executive (1983), Who's Who in U.S. Real Estate Professionals (2007)

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