Selling real estate to a sibling? A tenant? A business associate? A child? Wondering if you really need to pay a commission to a traditional broker, given that you already have the buyer and maybe a rough agreement on price? We’ll look at completing a real estate transaction with a buyer you have already identified and who has tentatively agreed to buy. Sometimes a traditional realtor’s service is not necessary, and the process can be kept simple and inexpensive while making sure all legal requirements and safeguards remain in place. A vital webinar for anyone owning commercial or residential real estate.
Sometimes a traditional realtor’s service is not necessary, and the process can be kept simple and inexpensive while making sure all legal requirements and safeguards remain in place. That said, a simple mistake can cost you and your heirs thousands, if not millions in tax, trust, or inheritance issues. That’s why this is such a vital webinar for anyone owning commercial or residential real estate.
There are many situations that might necessitate this kind of transaction, for example, when siblings or other family members buy each other out after the death of a parent or parents. A private real estate transaction may be part of an equalization strategy to effectuate an “even-Steven” split of inherited assets. Since most people won’t be interested in buying half, a third, or a quarter of a property, these properties, which can include anything from residential, multi-family, commercial, industrial, and agricultural or ranch land. not suitable for listing on the MLS.
The topics we cover in this legal webinar include:
What constitutes a Private Real Estate Transaction?
Pitfalls of Private Real Estate Transactions
Prop 13
How to buy out a sibling
How market value for these properties is established
The exercise of option to buy
What to do when there’s no option to buy
Best practices regarding private real estate transactions and MLS for residential properties
What is the capitalization rate?
1031 exchange pitfalls
“Drop and Swaps”
Escrow
Again, this is a great way to avoid realtor’s fees but you must speak to someone who knows how to conduct private real estate transactions and understands the complexities of the tax laws. If you don’t, you could end up spending thousands unnecessarily, completely defeating the purpose of a Private Real Estate Transaction!
