Posted on: 23rd Oct, 2012 11:44 am
I am from Ohio and I am preparing to go through the process of purchasing a used (1997) mobile home from my father that he has been living in but is moving out soon. The home sits in a mobile home park and is in good standing with the park owner. My dad has paid off the loan on the home making it his, free & clear. My father is offering me simple financing ($7200) plus a set interest fee ($1000) minus a cash down payment by me of $500. So the total loan amount incl. interest after down payment will be $7700 payable over a simple term of 48 months.
Also...I will not be living in the mobile home, but rather will be using it as a rental.
What documents will need to be completed to make this legal (i.e. promissory note, purchase agreement,sales contract, bill of sale)? Will my father hold the title, or will he state in the promissory note that the home will be the collateral?
My father also has a homestead tax exclusion because he is over 65 where he pays $0 taxes on it. Will he leave the home in his name for tax purposes or am I required to register w/ the courts to pay the taxes? It would obviously be in my best interest if possible to leave as is for tax purposes since there is a zero tax liability while registered in his name.
How about maintenance...since I will essentially become the "owner", like if I was dealing with a bank, I would be responsible for maintenance and upkeep. I am assuming this would be the same or will it need to be specified in the purchase agreement?
Is there anything of importance that I left out? Is it totally up to my dad and I how we want to do everything as long as it's stated in the agreement?
There's so many thoughts and scenarios running through my head, I just want to cover everything.
Thanks for any input you could provide. It seems like it should be so simple, but I want to make sure we are within the law and don't have issues once I pay it off.
Thanks in advance,
Bryan
Also...I will not be living in the mobile home, but rather will be using it as a rental.
What documents will need to be completed to make this legal (i.e. promissory note, purchase agreement,sales contract, bill of sale)? Will my father hold the title, or will he state in the promissory note that the home will be the collateral?
My father also has a homestead tax exclusion because he is over 65 where he pays $0 taxes on it. Will he leave the home in his name for tax purposes or am I required to register w/ the courts to pay the taxes? It would obviously be in my best interest if possible to leave as is for tax purposes since there is a zero tax liability while registered in his name.
How about maintenance...since I will essentially become the "owner", like if I was dealing with a bank, I would be responsible for maintenance and upkeep. I am assuming this would be the same or will it need to be specified in the purchase agreement?
Is there anything of importance that I left out? Is it totally up to my dad and I how we want to do everything as long as it's stated in the agreement?
There's so many thoughts and scenarios running through my head, I just want to cover everything.
Thanks for any input you could provide. It seems like it should be so simple, but I want to make sure we are within the law and don't have issues once I pay it off.
Thanks in advance,
Bryan
Hi subvet!
Welcome to forums!
The documents that you will require will include promissory note, purchase agreement, sales contract, bill of sale, etc. You will be taking out the loan and use the property as collateral. In such a situation, the deed should be in your name. However, if the property is removed from his name, then he woe to claim the homestead tax exclusion. If you become the owner, then you will be liable for the maintenance of the property.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
The documents that you will require will include promissory note, purchase agreement, sales contract, bill of sale, etc. You will be taking out the loan and use the property as collateral. In such a situation, the deed should be in your name. However, if the property is removed from his name, then he woe to claim the homestead tax exclusion. If you become the owner, then you will be liable for the maintenance of the property.
Feel free to ask if you've further queries.
Sussane
Hi Guest,
Rather than doing things on your own, it will be better if you could contact an attorney and take his opinion in this regard. He will let you know what steps you need to take in order to keep everything legal.
Thanks
Rather than doing things on your own, it will be better if you could contact an attorney and take his opinion in this regard. He will let you know what steps you need to take in order to keep everything legal.
Thanks
Consulting to an agent for personal assistance would be better than taking various suggestions.