Posted on: 20th Nov, 2007 05:25 pm
i would like to sell a 25' x 80' piece of land to the neighbor who lives next door to the property and has been keeping it mowed and cleaned up for nearly 25 years. he's offered a fair price. can we handle this transaction between ourselves and execute the transaction using a quit claim deed?
Hi Lorin,
Welcome to this forum.
You can use the quitclaim deed to transfer the title to your neighbor. You have to notarize the deed and record it in the county recorder office. Remember that you may need to pay capital gain tax if you obtain money higher than the purchased price.
Best of luck,
Larry
Welcome to this forum.
You can use the quitclaim deed to transfer the title to your neighbor. You have to notarize the deed and record it in the county recorder office. Remember that you may need to pay capital gain tax if you obtain money higher than the purchased price.
Best of luck,
Larry
Hello Lorin,
Yes, you may do the transaction between yourselves.
Is your neighbor taking a mortgage to buy this?
There are a few steps that might help you in such transactions.
1. You may have a real estate agent to negotiate the prices and closing costs as well as conduct the formalities of the closing.
2. Contact an attorney to know which documents are required for the transaction.
3. The quit claim used to transfer the ownership has to be notarized and recorded at the county recorder's office in order to make it valid.
If the selling price of the land is more than your cost basis, then you may have to pay a capital gains tax.
Yes, you may do the transaction between yourselves.
Is your neighbor taking a mortgage to buy this?
There are a few steps that might help you in such transactions.
1. You may have a real estate agent to negotiate the prices and closing costs as well as conduct the formalities of the closing.
2. Contact an attorney to know which documents are required for the transaction.
3. The quit claim used to transfer the ownership has to be notarized and recorded at the county recorder's office in order to make it valid.
If the selling price of the land is more than your cost basis, then you may have to pay a capital gains tax.
Be careful that you have a good contract for the monetary compensation. If you sign the quitclaim that gives him the property. If he has been taking care of it for 25 years he may have a right to the propery anyway. It is a rare and obscure law that allows people to steal property legally. Just make sure to get everything in writing and signed by all parties. I personally would use an attorney to cover all the bases and make sure everyone is treated fairly.
i would like to know everything i need to about selling of small piece of land to gain more experince in the industry for future preferences
i would like to know everything i need to about
You will have to list the property in the market first and check out if you can get buyers for it. Appraise the property and get to know the present value of the property. If the property has a mortgage on it, then you should make sure that the buyer assumes the mortgage when you sell off the property.