QUESTION:
My mother died eight years ago and my father has been living alone in a large house that my brothers ( Phil and Ed ) and I grew up in. Phil and Ed now live in California and are both well off. I live here in Standish in an apartment that I can’t afford with my two young children. Well, enough about me. Here is my question.
My eighty three year old father wants to sell me his house! I believe it is valued at $250,000 and he owes nothing on it. He wants me to buy it for $150,000. Can I do this without defrauding my brothers? Will a bank give me a loan? Can you advise a course of conduct?
Stanley in Standish
BOB’S ANSWER:
Maine has a law known as the IMPROVIDENT TRANSFER RULE. In essence, it states that your father needs his own lawyer separate and independent of you to represent him and provide assurances that your dad is providing this generous gift to you for all the right reasons. The law classifies groups of people that may be in a position to unduly influence an elder person ( defined by statute as being over the age of 60 ). The short list would include:
A. Children and other relatives
B. Priests, rabbis and spiritual advisers
C. Doctors and nurses caring for the elder person
D. Best Friends
E. Next Door Neighbors
If your dad does not have his own lawyer perform this service, he has up to six years to demand that you return the real estate to him. By the way, your Lender ( assuming you took out a loan to support the $250,000 purchase price ) would be exempt from this Law.
So my best advise is to make sure your dad has independent legal counsel, find a good Lender, say goodbye to your rented unit and say hello to your new ( old ) home!
(Be sure and email your questions to Attorney Bob Boudreau at reliabletitleinc@gmail.com or leave it in the comment section below. Your question and his answer may be published in this website at a later time).
