Pay now...get property later...???

[MossRoad]

After following this for a few days, I still think you should agree on a price with him, pay him in full now so he can enjoy the money and come up with a way to deal with the taxes. Maybe he pays full or half. Whatever you agree upon. It is you that wants control of the land. Therefore, you are going to have to pay dearly. That's the way it is. If you even come close to ticking him off, you can kiss it goodbye, as well as losing a good friend. Be careful. /w3tcompact/icons/smile.gif

 

[cowboydoc]

Alan,

I know you know about these things so is it customary to do this even when a person doesn't want to sell? I would think if a person isn't especially interested in selling you really have to sweeten the pot for them.

 

[Kelvin]

Macher,

There have been numerous responses to this issue. Here is my 2-cent response (assuming that you try to purchase it now):

(1) Rent Charge: I would recommend an amount somewhere between $1.00 (fixed amount) and an amount equal to the yearly taxes and INSURANCE (variable amount). This upper amount should approximate HIS yearly cost to live there and maintain the property regardless of whether an agreement is made or not. Consider including an umbrella insurance policy.

(2) Purchase Amount:
(2a) Start with the fair market value of the property (without improvements).
(2b) Add some value for the house. The increase in purchase amount for the house may start out at 1/2 the house's value (if he is not required to maintain it) and go possibly up to the full value of the house (if he is contractually obligated to maintain it). I would recommend that the increase in purchase price associated with the house be put into some sort of joint escrow account that is to be used to fund the house maintenance (both signatures required to withdraw funds??) and the remaining balance is to be transferred to his estate upon his passing.
(2c) If agreeable to both parties, subtract some value associated with the lifetime usage contract (ie, for your lack of usage).

(3) Maintenance of House and other improvements: It would much "cleaner" if he maintained the property himself using whatever funds are left in the escrow account mentioned in 2b above. That way the discussions on how the money is to be spent could be kept to a minimum.

(4) Initial Discussions: Without being there and not knowing the situation it is difficult to make intelligent suggestions. With that in mind, I believe that I would approach him saying that you are concerned about the future use of the land and are interested in what his future plans are for the land. Hopefully he'll think it over and come up with one of the plans suggested here that you've become familiar with, and it'll be his suggestion.

Kelvin

 

[Woodbeef]

Hey Macher,

We have a saying in the Bison business"You can make a buffalo do anything it wants to"

Just like Kelvin suggested,make your neighbor think it is his idea!!

 

[MarkV]

Have you considered seeing if he would sell the land minus the house and say a half-acre with the provision he could still use the land? He gets the money he might need, you put up less cash and have less taxes, you own the land and when the time comes the house may change hands but no condos or housing developments would happen. Many people will not consider selling the family home place even if they need the money. Just another angle to think of.

MarkV