Can I lose my home if the owner who carried the contract goes into assisted living directed by the state?

UPDATED: Sep 30, 2022

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Can I lose my home if the owner who carried the contract goes into assisted living directed by the state?

In 2015 I purchased my home owner carry. It was recorded legally through a title company. Now that 93 year owner who has dementia must go into assisted living by state direction. The daughter who is trustee of the owner’s estate tells me that the state can evict me and confiscate my home as an asset of the owner. I have been more than faithful to my part of the contract. Can the state do this?

Asked on August 5, 2017 under Real Estate Law, Oregon


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

The issue is whether the purchase was an "arms-length" transaction for "fair market value." The state can recover assets which were fraudulently hidden or transferred, such as for less than their fair value, in order to make sure that people pay their fair share of their own care and also to discourage fraudulent transfers, such as "selling" a home to family or a friend for a pittiance specifically to shelter it. But if you purchased the home for what it was worth, there was no fraud, and it is the fair price you paid for the home to the owner which replaces the home as an asset of the owner and to which the state has recourse. If this was a bona fide transfer for the fair price or value of the home, you should be ok.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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