Im trying to purchase my neighbours home at today's price and settling on it in the future after he passes away. My wife and I intend to build our dream home on the land. He is keen to sell to us, he only has a sister for family and is in his eighties. He intends on leaving the property to his sister. We have been speaking to him and have been advised not to do an option on the property as it would be null and void when he passes away and we would be throwing our money away. I want to give him a reasonable deposit so that he and his sister can enjoy some of the money now but if I do this it could affect his pension (he is on a full pension). So I am trying to figure out a very tight contract that is win-win-win where:
1. I don't affect his pension,
2. We agree to a purchase price now
3. Settle 60 days after either death or him needing to move into care
4. A tight contract where by I wont lose any deposit should he pass awayHas anyone every done a similar thing? I live in Brisbane and if anyone know a good lawyer that may have experience in this sort of thing I would very much appreciate it.
Thanks for your advice. Will look into Greggs. I think it will be worth the effort. It is definately a tricky one though.
Cheers
You could try a 'rent to buy' option and leave him in the house. I would certainly put a caveat on the property as a constructive trust to protect your interest. However, you need to ask yourself that at eighty does he really want to sell. Does his sister have power of attorney and yes, there is a chance that if the property is still in his will, you might have a battle on your hands. Is it worth it.
Why dont you just buy the place now and offer as a term of contract, a life lease. ie he can stay until he dies. Win for him – he gets the oney now and remains in his home. Win for you – you buy the property at todays rates and have a tennant from the start.
Be very careful and get a very good lawyer to provide advice on what risks are involved etc.
If you enter into a contract now and settle later – the property risk is yours – liability for any injuries sustained on the property, maintenance of the property, insurance of the property.
There are many issues – buying debt free?, not PPOR – investment, Estate -Will issues family won't be happy on missing out on the growth. All are friends until death and money are involved!
Try John Gregg from Greggs Lawyers in Spring Hill Brisbane – http://www.gregglawyers.com.au . He calls a spade a spade.
newbi2 wrote:Why dont you just buy the place now and offer as a term of contract, a life lease. ie he can stay until he dies. Win for him – he gets the oney now and remains in his home. Win for you – you buy the property at todays rates and have a tennant from the start.The house needs to be ripped down. It is in very poor condition so I only want the land. I don't to settle now and tie up all my money. I might have to do what you propose if I cant come to an arrangement.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
