[FL] How to buy a parent’s house with legal guidance?

Lexi, Chatbot

I understand that you're looking for guidance on purchasing your father's house. have you already discussed this with your father?

Lexi, Chatbot

Are there any specific concerns or obstacles you anticipate facing during this process?

Lexi, Chatbot

Is there anything else the lawyer should know before i connect you? rest assured they’ll be able to help with your property purchase.

TJ, Esq.

Hello! My name is TJ and I’m an attorney. Thanks so much for the opportunity to assist you!

I’ve gone over the details you shared and I’ll post my initial response shortly. I’ll also post a few quick questions to help me better understand your situation so I can give you a complete and tailored answer.

VERY IMPORTANT INFORMATION:
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(2) This is general legal info only. I can’t represent you or form an attorney-client relationship.

TJ, Esq.

Hi again!

To find an attorney for a real estate transaction like this, you’ve got a few good options.

A solid starting point is your local county bar association’s lawyer referral service — they often have lists of attorneys who specialize in real estate law and can point you to someone experienced with family transactions and gift of equity situations.

Online legal directories like Avvo, Martindale-Hubbell, and FindLaw can also help — they let you search by practice area and location, often with reviews and profiles.

Let’s discuss this in more detail so I can provide a more thorough response.

What state is the property located in?

Have you already spoken with any mortgage lenders about your credit situation and the possibility of using a gift of equity?

TJ, Esq.

Thanks for getting back to me.

It sounds like since the mortgage brokers hit a wall with your credit, you’re really focusing on finding a legal professional who can navigate this.

A lawyer specializing in real estate and estate planning can explore creative solutions like the gift of equity, which might sidestep some of the traditional mortgage requirements by adjusting the sale price to reflect your father’s gift.

This could allow you to acquire the property while acknowledging your father’s contribution, without relying solely on your credit standing for a full mortgage.

What state is this in?

TJ, Esq.

Thanks for getting back to me.

Since you’re in Florida, there are definitely specific things to consider. A gift of equity is a legitimate way to transfer property, especially within families. It means your father would sell you the house for less than its appraised market value — the difference between the appraised value and the sale price is the “gift.”

This can be a great way to handle the down payment hurdle, given your credit issues.

However, even with a gift of equity, you’ll likely still need a mortgage for the remaining amount. Because the mortgage brokers couldn’t help, you may need alternative financing or creative structuring, which is where a real estate attorney’s help becomes essential.

One major consideration is tax implications:

• Florida doesn’t have a state gift tax, but federal gift tax rules still apply.

• Your father has an annual exclusion amount (currently $19,000 per recipient for 2025) he can gift without filing a return.

• If the gift of equity exceeds that amount, he must file a gift tax return (IRS Form 709), though he likely won’t owe taxes unless he’s already exceeded the lifetime exemption ($13+ million for 2025).

• You, as the recipient, don’t pay tax on the gift, but it could affect your cost basis in the property if you ever sell it later.

Another Florida-specific factor is homestead protection. If this is your father’s homestead, Florida law has special rules for transferring it — especially if he has a spouse or minor children. The homestead exemption also offers property tax and creditor protection, which could be affected by the transfer.

You’ll also want to make sure that once the property is yours, you can apply for your own homestead exemption if you’ll live there full-time.

A Florida real estate or estate-planning attorney can:

• Review your father’s current ownership and any existing mortgages.

• Draft a purchase agreement and gift of equity letter.

• Coordinate with a CPA to handle tax implications correctly for both of you.

• Ensure the transaction complies with Florida law and federal tax rules.

Here’s what you should do:

• Consult a Florida real estate attorney experienced in intra-family transfers and gift of equity deals.

• Have them outline a professional, win–win plan you can present to your father clearly and respectfully.

• They can also connect you with the right financial experts (CPA, title company, etc.) so the process runs smoothly.

Did I completely answer your question, or do you need clarification on any part? Please feel free to ask follow-up questions.

Thanks again for letting me assist you!

TJ, Esq.

Hello again! I am a real attorney, not AI, and this message was not generated by ChatGPT.

While we do use AI tools for grammar, etc., I want to clarify that I’m here to assist you personally.

What specific information are you looking for that I may not have covered? I reviewed everything, and it seems like I addressed all your points.