Expert: Connie Wildasinn-Broker,GRI,Realtor® - 10/4/2011

Question
I recently started a new ministry and while out looking for a building for our church I met a man last week (looks to be in his 90's) who is a retired pastor of small church in a run down area of Detroit.

From our conversation I gather that he's been trying to sell it for years now with no luck. I asked him did they still worship there and he seemed to be reluctant to say ... he said sometimes. (I think because he doesn't want anyone to know that the building is unoccupied in order to protect it from vandals). I'm pretty sure that its vacant though because I drove by there a couple times on Sunday during service times and there were no cars.

From the conversation I gather that he maintains the entire building himself and is very weary of it and wants to walk away.
In our conversation he asked me to make an offer. While our ministry is very new and does have a steady income we haven't accumulated any savings or credit and therefore not currently in position to buy. I did proposed to him however to allow us to lease it or do a long land contract. His response was "I'm  too old to do a land contract with someone" and he seemed animate about not wanting to manage a lease.

Even though He knows we have no saving and that we are not in position to lay down any kind of large deposit he says he wants to work with us. He's called a couple of times now and in our last conversation he said if I could offer him ANY substantial amount of money he'd be willing to give me the key and walk away from the building, lock stick and barrel, furniture and all. He said he'd really likes me and really wants to work with me on this ... even said he might even give it to me. $15,000 was the initial upfront cash amount he had hoped to get  (all the furniture itself in the building was worth that much). He also wanted with some balance paid off in 3 months -whatever we decide that balance would be.

The building is paid for in full, its tax exempt, fully furnished but all its utilities are still on and working and I can tell that in itself along with all the maintainance its going to require this winter is a burden he wants to be rid off.

He wants me to meet him today to try to nail something down. While  cannot offer large sum depoist, I would like to be able to propose some kind of agreement that would work for us both ...but I'm not really sure what. Maybe some kind of quick claim deed that would put our name on the property with his that would include some kind of monthly payment for as long as needed.

I think the fear is ... if he doesn't sign it over and he passes, the building is going to go to vandals OR if he leases it out or does a land contract and he passes before its fulfilled no one will assume responsibility.

I'm meeting him later on today and considering all the known circumstances, I wanted to I know if you had any suggestions for a type of agreement or deed that could be considered.

I hope you get this before our meeting today so that I can go there somewhat prepared.

Thanks
Karl

Answer
Hi Karl,

You really need a real estate attorney/closing agent.  It is great that he wants to 'give' it to you, in reality it has no value except to someone like you.  You are not taking over a business,that has been abandon by the community and basically you are getting the land ... from my understanding of the Detroit market it is severely depressed and even nice homes take years to sell... this is a one use shell at best, you are buying the personal property in the furnishings inside.

If you get him to sign a quit claim - assuming there is no debt on the property, that would give it to you... and should remove him completely... but you need to be sure he is the sole owner, and has the right to convey without restriction.

Do yourself a favor and get all the papers done right... skimping now could cost you dearly later... Good luck