Property Transfer Question?

there is a house next door to me that burnt 4 months ago and it did not burn that bad just $5,000.00 worth and its worth $50,000.00 the fire department broke just about every window down stairs. and they have been boarded up since. he got a notice from code enforcement that he has to show sign of improvement by febuary or there tearing it down in may. talk to him yesturday and he said i dont have the money to put in this house. he did not have insurance. so i said well how much would you want for the house. and he said i will give it too you. and i said let me think about it. i do know the first floor was hosed down. so yes i know it needs work. but it got new siding roof and the newer furnance did not get ruined. im would redo the whole house. what do i have to lose?? i work at carter lumber and would be able to get discounted material. if i get it and cant fix it up for some reason they just tear it down and lien the property not me. i did check into that part already. im just wondering. if i decide to take it. what costs is there in the state of new castle,pa to transfer it and everything. and can he give it to me with a notice to fix it up or it will be torn down. i mean there are no leins on the property. and there are no back taxes. does anyone know??

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3 Responses to “Property Transfer Question?”

  1. Ordinary Guy says:

    he is not going to give it to you unless you live in the booonies.
    if he did you need probably $10k to fix it up to live in if the city does not force you to tear it down and build new.

  2. Small Business Owner in TX says:

    First, go to a Title Insurance Company, and ask an Escrow Officer to do a title search of the property for you. This will tell you status of taxes, and debts and liens. If taxes are due, they will have to be paid at time of title transfer (this year’s taxes will be due and payable in January 2013). Any liens of record must be paid at time of title transfer, too — mortgage, home improvement loan, pool loan, etc. The escrow officer can calculate for you the actual cost of taking ownership. They will try to sell you Title Insurance, but if you’re not buying with borrowed money, you don’t need it — it’s your choice whether to buy it or not. You can download from the State Realtor’s Association website contract forms. The minimum allowable price in most states is Ten Dollars — you pay the owner ten dollars for the land and “improvements” which in this case means buildings, fence if there is one, shed if there is one, etc.
    Also, go to the “Code Enforcement” or “Building Inspections” department of the city, and ask them what you will have to do to get the “tear down” order lifted. If you tell them that you want to make it safe from children, etc, not occupy it, and over time rebuild it (pulling permits), they probably will be very helpful –what they want is to make it safe for neighborhood kids, safe from being a fire hazard, and protection from vermin infestation. Your immediate goal will be to replace the windows and repair exterior doors, get a roof over it, and seal the exterior from weather.
    Talk to your credit union about a mortgage with which to repair the property — they might require that you hire a remodel contractor, which you might not want to do.
    Don’t acccept the property if you can’t keep the city off your back. If they tear it down, and you’re the owner, they will bill you for the cost of teardown, and you will be responsible for keeping it mowed while you own it, too — that old vermin issue.

  3. linkus86 says:

    Assuming there is not a loan on the property you can take it for the cost of preparing a new deed and having it recorded ($200-500). But unless you meet code enforcement by the deadline you could be fined and be on the hook for the cost to tear it down. Still, what the present owner doesn’t realize is that even if the house is condemned, the land still has value. And by giving it to you he could be liable for paying gift taxes over the statuatory maximum (which I think is $14,000 now), and would be fair for you to pay for the sake of his generorsity. The county assessor’s value is what the irs will use. So if the property is valued at $25k, you should pay the gift taxes on $11k. Thus even if you had to pay for the house to be torn down, you would still likely come out ahead.

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