How to deal with this property?


A

ALiang

Situation: I currently own a home, which I bought for around 200K a
few years ago. I guess it is worth about the same value now. I’ve
already paid about 100K so far. However, I am unemployed now. I guess
I will not seek another employment for the near term. My partner lives
with me for the past years. He is willing to help me with the rest
house payment, and of course he also wants to own half of the house.
In the mean time he could be qualified as a first-time home owner.

Solution 1: I add him to the house deed. So we co-own the house. And
then the mortgage will be refinanced to him. But I guess he won’t be
able to take advantage of the $8000 tax benefits, right? We also want
to make the legal agreement that we each have the 50% share of the
house. But how to do that?

Solution 2: I sell the house to him for 100K. So he could definitely
get the tax benefit. But I am worried my rights won’t be protected.
Although my name won’t be listed in house deed, can we still make a
legal contract that I own half of the house?

Solution 3: I simply sell the house. And let him buy another house so
we can move in. But the moving, selling the house, all the hassels…..

You opinion will be greatly appreciated!
 
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R

Ron Peterson

Situation: I currently own a home, which I bought for around 200K a
few years ago. I guess it is worth about the same value now. I’ve
already paid about 100K so far. However, I am unemployed now. I guess
I will not seek another employment for the near term. My partner lives
with me for the past years. He is willing to help me with the rest
house payment, and of course he also wants to own half of the house.
In the mean time he could be qualified as a first-time home owner.
Solution 1: I add him to the house deed. So we co-own the house. And
then the mortgage will be refinanced to him. But I guess he won’t be
able to take advantage of the $8000 tax benefits, right? We also want
to make the legal agreement that we each have the 50% share of the
house. But how to do that?
First get the house appraised and inspected so that you know what the
house is worth and if you may have some unsuspected maintenance
issues.
Solution 2: I sell the house to him for 100K. So he could definitely
get the tax benefit. But I am worried my rights won’t be protected.
Although my name won’t be listed in house deed, can we still make a
legal contract that I own half of the house?
You could offer to make him half owner for $100,000, and then may off
the mortgage.
Solution 3: I simply sell the house.  And let him buy another house so
we can move in. But the moving, selling the house, all the hassels…..
That might work especially if you could buy two halves of a duplex,
living in one and renting out the other.

Or just consider renting for the near term until the economy recovers.
 
D

Don

Solution 3: I simply sell the house. And let him buy another house so
we can move in. But the moving, selling the house, all the hassels…..
Or, you could buy another house under joint ownership, but keep the old
one and rent it. The rent from the old one contribute to the mortgage
payments on the new one. If not, you could consider getting a new place
somewhat less expensive, so that the rent from the older larger place
would go further toward the mortgage on the new one.

Think positively. The hassles you are referring to are probably no
worse than a daily commute in rush hour traffic. Get a house closer to
your workplace and you come out even.
 
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I

Igor Chudov

Let me try to get this right: your partner wants you to give him/her
half your house, in exchange for a verbal promise to continue paying
your mortgage?

In any case, I would seek advice of a lawyer that you select, and go
alone, without your partner.

Some of your solutions leave you rather unprotected.

i
 

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