I am buying a house Mother is paying downpymt with monies to be returned if I sell house what should promissory note say
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
I am buying a house Mother is paying downpymt with monies to be returned if I sell house what should promissory note say
Asked on June 30, 2009 under Real Estate Law, Arkansas
Answers:
J.M.A., Member in Good Standing of the Connecticut Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
I am a lawyer in CT and practice in this area of the law. I suggest that you NOT write the promissory note your self. You can simply give your mother a mortgage on the property for the amount of the downpayment. I presume that she does not care about interest on here money. If she wants to try to make some money on the deal, then you can set up a limited liability company to own the property and you can both be members and when the property sells, your mom will get back her money first and then what ever is left over, you two can split. plus, you can possibly save your first time home buyer status to later on in life. What happens if the house does not make any money when it sells? is your mom going to want you to pay her back? I presume not, but have to ask anyway. You need to go see a lawyer. This may be as simple as giving a mortgage to your mom - however, there are several complexities that could arise which is why you need to see a lawyer.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.