Expert: Dick Dennis - 6/2/2011

Question
I live in Southern California and my husband and I are in the process of buying a new home (now in Escrow). My father has proposed purchasing our current home for $700,000 in cash, $200,000 of which will pay off our current loan, and $500,000 that we can use towards a down payment on the new house). We were hoping to complete the transaction with my father prior to closing on our new house (quickly within the next week). Our questions are:

1) Do we need to go through Escrow or a Real Estate Lawyer to do this? We bought the house 3 years ago and know our title is clear.

2) If we can do it ourselves, which forms to we need to fill out with the county to transfer the title?

3) Is there anything else we should consider?

Many thanks for your time.

Answer
Because I would want you to not have any problems down the line, Nathalie, I strongly suggest you let a title company handle the transaction because you just never know what may have or could have happened to your title in those three years. The fact that you had title insurance on your residence within three years, you will be given a discount on the cost of the title insurance. So why play games?

A real estate attorney can put the transaction together for you by creating a purchase agreement between the parties involved. So can a very EXPERIENCED REAL ESTATE BROKER. My guess the cost would be less. All you REALLY need to do is to convey the title to your dad with a GRANT DEED. You will find that either the attorney or broker will use that document. It is the only document that will need to be recorded with the county. Both the attorney or broker will see to it.

The real estate attorney will ensure that you will have no legal problems going forward. Having 40 years under my belt as a broker, I have seen too many transactions spring up with sorrowful problems when the parties assured themselves that there should be nothing wrong with the transaction. You have a substantial amount of funds involved, so why take a chance? Apparently, you are professionals, so why not treat the whole matter professionally? I do wish you well.

Dick Dennis
CA Real Estate Broker
License #00349415
dixiedee13@aol.com