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A property in Florida is controlled by four parties (one life estate and three remainderpersons). The remainderpersons will each receive $10,000 from the proceeds of the sale of the property.
The property has been on the market without any buyers and has been recently appraised for $150,000.
The life estate would like to move ASAP to another state and they will need $45,000 to do this.
Because the life estate is very motivated she is willing to sell me her life estate interest for $45,000. Also, one of the three remainderpersons will sell me their remainderperson interest for $10,000.
Is this a good deal? What are the risks associated with this type of deal? For example, the last two remainderpersons may hold up the sale of the property?
Your wisdom is greatly appreciated!
Eric,
Unless you can get ALL parts of the deal, you don’t want it.
You should write a contract with each party who has agreed but make the closing contingent upon you getting all parts of the deal satisfactorily. Put a time limit on it too. ( like within 30 days)
The other thing to take a close look at is the life estate — you need to read the documents closely. It may say that if the life estate moves out for any reason, then the remainder gets the property.
Proceed with caution
Jackie
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