[AL] [AL] My fiancée and I are buying a lake house from my parents. What do we need to do to get the deed transferred?
My fiancée and I are buying a lake house from my parents. What do we need to do to get the deed transferred? We are doing a purchase agreement for formality. We are making a down payment and my parents are owner-financing. The house is in Alabama, and we live in Georgia.
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Here's a step-by-step process for completing your transaction properly:
Step 1: Finalize the Purchase Agreement and Loan Terms
- Clearly outline the sale price, down payment, monthly payments, interest rate (if any), and balloon payment.
- Use a promissory note or loan agreement to formalize the owner financing.
- A lawyer can help draft or review this document to make it enforceable and protect both parties.
Step 2: Prepare the Deed
- Use either a warranty deed or a quitclaim deed.
- Since it’s a family sale, a quitclaim deed is quicker but offers no title warranties.
- Include:
- Buyer/seller full names
- Legal description (from current deed or tax statement)
- Purchase price or wording like “for value received”
- Signatures in front of a notary
Step 3: File the Deed with Alabama Probate Court
- Submit the signed/notarized deed at the Probate Court in the Alabama county where the property is located.
- Bring:
- The deed
- Any county-required Real Estate Sales Validation Form
- Payment for the recording fee
- Check your county’s website or call ahead for details.
Step 4: Handle Tax Filings and Loan Documentation
- You and your parents should each retain a signed copy of the loan agreement.
- Your parents may need to report interest income on their taxes.
- You might qualify to deduct mortgage interest.
- If the sale price is under market value, check gift tax thresholds.
- A tax professional can assist here.
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My fiancée and I are buying a lake house from my parents. What do we need to do to get the deed transferred? We are doing a purchase agreement for formality. We are making a down payment and my parents are owner-financing. The house is in Alabama, and we live in Georgia.
Lexi, Chatbot
That sounds like an exciting step! Have you already discussed the specifics of the purchase agreement with your parents?
Yes, all details are agreed upon.
Lexi, Chatbot
Are you aware of any potential differences in real estate laws between Alabama and Georgia that could affect the transfer of the deed?
No.
Lexi, Chatbot
Is there anything else the Real Estate Lawyer should know before I connect you? Rest assured they'll be able to help with your deed transfer.
No.
Legal Eagle
Hello! Legal Eagle here, and I am an attorney specializing in your area of law. I am more than happy to help you with your situation! Have you considered how the owner financing arrangement will be documented in the purchase agreement?
Thank you! I have not documented it in the purchase agreement and will have a separate loan agreement.
Legal Eagle
Great! It's good to know you have a separate loan agreement planned. Since the house is in Alabama and you're in Georgia, have you consulted with a real estate attorney in either state to assist with the deed transfer? Also, do you have a timeline for when you'd like to complete this transaction?
I'd like to complete it ASAP, but I haven’t consulted with an attorney... I thought that is what we are doing.
Legal Eagle
Got it! I appreciate you using AskALawyer — let’s make this a smooth session for you. Anything else you'd like to add?
Can’t think of any... just want to make this as smooth as possible.
Legal Eagle
Here's a step-by-step process for completing your transaction properly:
Step 1: Finalize the Purchase Agreement and Loan Terms
- Clearly outline the sale price, down payment, monthly payments, interest rate (if any), and balloon payment.
- Use a promissory note or loan agreement to formalize the owner financing.
- A lawyer can help draft or review this document to make it enforceable and protect both parties.
Step 2: Prepare the Deed
- Use either a warranty deed or a quitclaim deed.
- Since it’s a family sale, a quitclaim deed is quicker but offers no title warranties.
- Include:
- Buyer/seller full names
- Legal description (from current deed or tax statement)
- Purchase price or wording like “for value received”
- Signatures in front of a notary
Step 3: File the Deed with Alabama Probate Court
- Submit the signed/notarized deed at the Probate Court in the Alabama county where the property is located.
- Bring:
- The deed
- Any county-required Real Estate Sales Validation Form
- Payment for the recording fee
- Check your county’s website or call ahead for details.
Step 4: Handle Tax Filings and Loan Documentation
- You and your parents should each retain a signed copy of the loan agreement.
- Your parents may need to report interest income on their taxes.
- You might qualify to deduct mortgage interest.
- If the sale price is under market value, check gift tax thresholds.
- A tax professional can assist here.
I think I understand now — we can use a quitclaim deed. But since there’s a loan, it’s not a gift. How do we handle that?
Legal Eagle
Good question! You can still use a quitclaim deed even if it’s not a gift. But because there’s owner financing involved, it’s important to have separate loan documents like a promissory note. These aren’t filed with the court but are legally binding. You can use services like ContractsCounsel.com to find affordable attorneys who will draft that for you.
What do I need an attorney for if I can do the quitclaim deed and don’t need to file the loan papers?
Legal Eagle
A lawyer helps ensure your loan terms are enforceable. Even though you're doing the deed yourself, the financing arrangement should be well-documented in case of future disputes.
I'm totally confused what I’m paying for here... You pretty much told me to go find another attorney?
Legal Eagle
I understand your frustration. AskALawyer is an information service — we guide you with legal insight, but don’t draft the documents directly. I'm here to help you with the process and clarify every step.
I just need the steps... 1, 2, 3, etc., to get this filed correctly.
Legal Eagle
No problem — see the steps I listed above. That will walk you through it clearly.
Perfect! Thank you so much :)
Legal Eagle
You're very welcome!
Legal Eagle
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