If someone else purchases property for me, I give them full purchase price for closing and they quick claim to me after closing would there be any financial implications for them?
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If someone else purchases property for me, I give them full purchase price for closing and they quick claim to me after closing would there be any financial implications for them?
The realtor for the seller won’t work with me because apparently my
initial offer was insulting.
Asked on May 17, 2019 under Real Estate Law, Michigan
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
If they would have made a profit on this transaction, they'd have to pay taxes on that amount. So say that you provide them $200k but the house cost them (all inclusive) $195k to obtain from the seller, so let you let them retain $5k for their trouble, effort, etc., that $5k is income to them and they'd have to report and pay taxes on it. If they don't make any money on the transaction, there should be no financial implications.
Bear in mind that unless you have a written contract with them in which they get *something*--it doesn't have to be a lot, but it must be some benefit or money or thing of value; i.e. "consideration"--in exchange for quitclaiming the house to you, you are vulnerable: if they don't follow through and quitclaim the house, you'd have difficulty enforcing your rights without a valid contact (and valid contracts require consideration). So draw up a written contract with the purchases in which they get at least some small amount (a few hundred dollars?) for doing this, so you can have an enforceable agreement.
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