Rent to own agreement with Family

[Zigner]

Nothing prevents you, OP, from getting a copy of the deed and working out a rough draft of a contact for deed with competent Counsel that safely meets your needs and ability to pay...and the draft has lots of open space to make changes...and you use this as a format for discussions with parents ....mark it up to suit everybody...but take it back to your attorney for final tune up before all the parties sign it .

That's really not the best way to handle this. The BEST way to handle this would be for the OP and the OP's mother-in-law to each have their own counsel do this. Why? To avoid the appearance of undue influence.

 

[TeddyBarrett]

Nothing prevents you, OP, from getting a copy of the deed and working out a rough draft of a contact for deed with competent Counsel that safely meets your needs and ability to pay...and the draft has lots of open space to make changes...and you use this as a format for discussions with parents ....mark it up to suit everybody...but take it back to your attorney for final tune up before all the parties sign it .

Thank you, that helps a lot, I feel a little more confident in dealing with this.

 

[Zigner]

Thank you, that helps a lot, I feel a little more confident in dealing with this.

Please not that HRZ's post is not the best way to handle this to help you avoid problems down the road. The safest way to handle this is for both the "seller" (M.I.L.) and the "buyer" (you and your wife) to have their own legal counsel review this.

 

[FarmerJ]

One way to go is where you have a recorded contract to buy it from her and are making payments to her for principle and interest. In my state we call those contract for deed in other states its called a land contract Either way its a formal and recorded at the county recorders office just like a mortgage, it can spell out details like to who you continue to pay if she were to die before the contract is paid off, it could have a balloon payment in a few years or it could be written to allow payment to take place over 10, 12, 15 (or even 20 ) years and even so there is no balloon at the end. Contract for deed protects the buyer in ways that a so called rent to own wouldn't.

 

[HRZ]

Well it certainly makes sense for MIL to use counsel ....but that's a bit her call....your counsel is there to protect you ....and so far nothing suggests MIL has any limitations on her power to contract.and nothing suggests undue influence ....But I do agree...if MIL uses counsel it takes the wind out of any future arguement that she did not know what she was doing. TX has its own special rules for executory contracts ..they must be followed to be safe.

If

 

[Zigner]

... and nothing suggests undue influence ...

Tell that to the spurned relatives of M.I.L. who will argue that it WAS undue influence.

 

[HRZ]

I agree if MIl uses counsel it reduces impact of squawk factor from relatives .

WHile not asked or addressed...MIL might be wise to have the deal structured so it does not come back to bite her
IF Medicaid is in her foreseeable future .

 

[Zigner]

WHile not asked or addressed...MIL might be wise to have the deal structured so it does not come back to bite her
IF Medicaid is in her foreseeable future .

You're right. That's a good thing for MIL to keep in mind.

 

[westside]

Well, I feel you just summarized what other people have brought up, but in a much more intense and condescending way. Which I don't see as helpful.

At least he left out the part where he gives incorrect advice, which happens a lot.

 

[latigo]

Well, I feel you just summarized what other people have brought up, but in a much more intense and condescending (?) way. Which I don't see as helpful.

"Intense and condescending"? (That is certainly a unique amalgamation of emotions.) Are you saying that my response is "fiercefully accommodating", or what?

Incidentally, Mr. Lone Star Wisenheimer, I don't need to draw on the opinions of other contributors to predict this:

That if you should be so foolhardy as to enter into a Contract for Deed, without having the vendor's duly executed and acknowledged deed held in escrow - and the contract administered by a licensed escrow agent - and an abstract of the contract duly recorded in the county land office- AND ALL OF THE FOREGOING PROFESSIONALLY ORCHESTRATED - that you will ultimately experience an extremely intense emotion of remorse!