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  1. #1
    Join Date
    Sep 2004
    Posts
    758

    Default Home seller becomes tenant

    A family member with wife and child and minimal means is looking to buy a first home. Via a friend, they discovered an unadvertised house just out of their price range where the seller is offering to sell the house at discount provided he can live rent free in the upstairs for 5 yrs. The area is not zoned for multifamily but the seller has had a tenant whose lease runs out next month and will be vacating. Aside from the risks of being stuck with a tenant who could turn out to be incompatible or worse or the neighbors reporting a ? zoning violation, what other bombs lurk?

    Part of the story is thought to be that the seller needs cash for child support or divorce settlement but has sweat equity in the house and would just as soon stay. If a divorce settlement is involved, I suppose one should avoid this deal as the spouse would have every right to demand fair market price for the transaction. How can one be assured of where things stand with regards to a spouse/ex? Is a deed registered in the seller's name only sufficient?

  2. #2
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Spouse's Claim to Home

    If the spouse has a claim to the home, either under the dower laws of the state or because the spouse is on the title, a buyer would want a warranty deed from the seller and at least a quit claim deed from the spouse. (Ideally, both spouses would sign a warranty deed.)

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