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Author: legalwordwarrior Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 16  
Subject: Re: Buying land from parents Date: 9/3/2008 1:54 PM
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Hi wonderinggirl,

This is not legal advice:

We were in a similar situation with DH's parents earlier this year. Your parents are probably trying to do something with a Quit Claim Deed. It has jargon that reads in essence: "For the sum of one dollar ($1) and other valuable consideration" etc, etc, with the details of the land that you are purchasing from them. I don't know how common it is in other parts of the country, but we do this in Texas all the time. The thing is, it's not the initial cost that will get you. It's the taxes on the property after the sale. When DH and I considered this, the property involved was his parent's house. They purchased it brand new in 2002 and it is a lovely home in a great neighborhood. However, their taxes and insurance on the property run almost as much as our entire house note. We'll have our house paid off in the next 5-7 years, at which time our costs will drop to about $200 a month. We couldn't see the value in paying the higher taxes on their home. So bottom line, look at all the expenses(county taxes, city taxes, school district taxes, etc) that come with your $1 purchase and then determine if this is something you can afford.

LWW
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