I would like to know how to sell my house for 1,00
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
I would like to know how to sell my house for 1,00
Thinking about selling my house to my son. I have a
real estate loan. Need to find out how that would work
Asked on October 16, 2018 under Real Estate Law, Pennsylvania
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
1) If you have a real estate loan, you have to pay it off before or at the time you transfer title; you don't, the bank can foreclose on the house. The lan is not cut off, or the bank deprived of foreclosure rights, by the transfer. In addition, a $1.00 transfer could be seen as fraudulent--an attempt to defraud your creditors by depriving them of an asset--and could be set aside or reversed under the Fraudulent Transfers Act.
2) Yes, you can sell the house to your son for $1.00, but assuming the house has some value greater than that, the excess value over $1.00 will be treated as a gift to him and will be subject to the gift tax. Speak to a tax preparer about tax consequences to your son and you before doing this.
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 AttorneyPages.com 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.