The bank wants a purchase agreement to release the lien on a property that was gifted. What form should I use?
Hello, our land was a gift from my brother-in-law. The bank wants a purchase agreement to release the lien, but we already transferred the deed at the title office. Since the property was a gift, can we just remove the portions of the agreement that mention down payment, inspections, and so on?
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Your edited form should probably be fine, but here's a custom sample agreement you could use instead:
REAL PROPERTY TRANSFER AGREEMENT (GIFT TRANSACTION)
-
Effective Date:
This Agreement is made effective as of [Date you are signing this agreement]. -
Parties:
Transferor (Donor): [Your Brother-in-Law's Full Legal Name]
Address: [Brother-in-Law's Full Address]
Transferee (Donee): [Your Full Legal Name]
Address: [Your Full Address]
-
Property Description:
The Transferor agrees to transfer and the Transferee agrees to receive all of the Transferor's rights, title, and interest in and to the real property located in [County], State of Utah, more particularly described as:
[Full Legal Description from the Deed] -
Consideration:
The transfer is a gift. For legal purposes, the Transferee has provided nominal consideration of $1.00 and other good and valuable consideration, including natural love and affection, which is acknowledged by the Transferor. -
Nature of Transfer & Purchase Price:
This is a gift transfer. No monetary purchase price is involved, and therefore terms like down payment, earnest money, or financing do not apply. -
Deed Transfer:
The deed was recorded on or about [Date Recorded] in [County], Utah. This Agreement simply documents the gift transfer for third-party requirements like banks or appraisers. -
Condition of Property:
The Transferee accepts the property “AS-IS,” with no warranties or representations regarding condition or compliance with regulations. -
No Contingencies:
Since this is a gift and the transfer has already occurred, no contingencies (inspections, appraisal, or financing) apply. -
Entire Agreement:
This document reflects the complete understanding and replaces any prior agreements or discussions. -
Governing Law:
This Agreement shall be governed by the laws of the State of __________. -
Signatures:
Transferor (Donor): ________________________
Date: _______________
Transferee (Donee): _______________________
Date: _______________
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Residential Real Estate Purchase Agreement
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Hello, our land was a gift from my brother-in-law. The bank wants a purchase agreement to release the lien, but we already transferred the deed at the title office. Since the property was a gift, can we just remove the portions of the agreement that mention down payment, inspections, and so on?
Lexi, Chatbot
I understand your situation. Did you have a written agreement with your brother-in-law regarding the gift of the land?
No.
Lexi, Chatbot
Have you consulted with a real estate lawyer about this issue yet?
A lawyer wrote the deed for the transfer and never asked for a purchase agreement.
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 situation.
No.
DustinJ1119
Hello, welcome to AskALawyer. My name is DJ. I've been a lawyer for over 20 years.
DustinJ1119
Let me make sure I understand correctly. Your brother-in-law gifted you some property. The deed was transferred from him to you at the title office. But there's a lien on the land that needs to be released?
Yes, we are trying to build a house. We got to closing and the title office discovered the lien, which shouldn't have been in place. In order to order the appraisal on my brother-in-law's remaining parcel, they are requiring a copy of the purchase agreement.
I created one through the eForms.com website, but I wasn't sure if I could just remove the sections talking about earnest money, all-cash offer, contingencies, and so on.
DustinJ1119
So the issue is: there is no purchase agreement because it was a gift, but the appraisal process requires a copy of one?
Yes.
DustinJ1119
Your edited form should probably be fine, but here's a custom sample agreement you could use instead:
REAL PROPERTY TRANSFER AGREEMENT (GIFT TRANSACTION)
-
Effective Date:
This Agreement is made effective as of [Date you are signing this agreement]. -
Parties:
Transferor (Donor): [Your Brother-in-Law's Full Legal Name]
Address: [Brother-in-Law's Full Address]
Transferee (Donee): [Your Full Legal Name]
Address: [Your Full Address]
-
Property Description:
The Transferor agrees to transfer and the Transferee agrees to receive all of the Transferor's rights, title, and interest in and to the real property located in [County], State of Utah, more particularly described as:
[Full Legal Description from the Deed] -
Consideration:
The transfer is a gift. For legal purposes, the Transferee has provided nominal consideration of $1.00 and other good and valuable consideration, including natural love and affection, which is acknowledged by the Transferor. -
Nature of Transfer & Purchase Price:
This is a gift transfer. No monetary purchase price is involved, and therefore terms like down payment, earnest money, or financing do not apply. -
Deed Transfer:
The deed was recorded on or about [Date Recorded] in [County], Utah. This Agreement simply documents the gift transfer for third-party requirements like banks or appraisers. -
Condition of Property:
The Transferee accepts the property “AS-IS,” with no warranties or representations regarding condition or compliance with regulations. -
No Contingencies:
Since this is a gift and the transfer has already occurred, no contingencies (inspections, appraisal, or financing) apply. -
Entire Agreement:
This document reflects the complete understanding and replaces any prior agreements or discussions. -
Governing Law:
This Agreement shall be governed by the laws of the State of __________. -
Signatures:
Transferor (Donor): ________________________
Date: _______________
Transferee (Donee): _______________________
Date: _______________
Thank you.
DustinJ1119
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