Expert: Dottie Worthington - 4/23/2010

Question
QUESTION: My mother in law offered to purchase the house we were looking at in Austin TX, originally we had agreed that our name would go on the title deed and this is how we entered into the contract. We were going to pay her back with interest, effectively making her our mortgage lender.  However now she wants to own the house and have us pay her in such a way that it would be rent to own.  Since our names are on the contract can we change it to her name before we close?  If we can how do we do that? Once we do that is there a way later on that she can transfer the title deed back into our names?

ANSWER: She can close the house in her name, you just have to assign the contract to her. Providing she is paying cash.
She can deed it over to you later, it will just have to be recorded and have another closing.

I would get all terms in writing, with a timeline and everything spelled out.

---------- FOLLOW-UP ----------

QUESTION: How/when do we change the name on the contract?  

How would she deed it over to us later?  Can you explain it needed to be recorded and have another closing?

Thank you.

Answer
Just call the title company and tell them you are assigning the contract to her.

The same Title company can deed it over for you when you get ready, ask them about that when you go in there to close on the house. They can explain the later process to you.