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Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: joer1212 on January 31, 2017, 12:40:34 PM

Title: Legal Liability for Purchasing a House for Someone Else
Post by: joer1212 on January 31, 2017, 12:40:34 PM
If I buy a house for my brother, and I pay for it with a cashier's check made out to the owner of the house (in this case, the bank's attorney, which will be handling the closing), would I be legally liable in any way in the future should, god forbid, my brother do something illegal involving that house?

Would I be subject to questioning by authorities because I funded the purchase of the house?

Would my name be mentioned anywhere on the deed, or other legal documents, at all?

FYI: The house will be under my brother's name
Title: Re: Legal Liability for Purchasing a House for Someone Else
Post by: Drifterrider on February 01, 2017, 06:19:20 AM
If I buy a house for my brother, and I pay for it with a cashier's check made out to the owner of the house (in this case, the bank's attorney, which will be handling the closing), would I be legally liable in any way in the future should, god forbid, my brother do something illegal involving that house?

Would I be subject to questioning by authorities because I funded the purchase of the house?  Maybe

Would my name be mentioned anywhere on the deed, or other legal documents, at all?If you make it so

FYI: The house will be under my brother's name

Depending on price you might have gift tax issues.

If you loan your brother your car and he gets a speeding ticket; do YOU have to pay it?
Title: Re: Legal Liability for Purchasing a House for Someone Else
Post by: Nick_Miller on February 01, 2017, 07:44:35 AM
Just be sure he doesn't run a meth lab out of the house.

Seriously, you are not liable for the actions of related adults. Otherwise, we would all be screwed.
Title: Re: Legal Liability for Purchasing a House for Someone Else
Post by: joer1212 on February 01, 2017, 11:20:37 AM
Just be sure he doesn't run a meth lab out of the house.

Seriously, you are not liable for the actions of related adults. Otherwise, we would all be screwed.

I hope not, because my brother is a somewhat volatile person. I don't want any investigations resulting from his actions to come back to me. I don't even want to be questioned by authorities. I would rather not exist in the picture at all. I'm not saying that my brother will do something illegal in that house, I just want no part of it in case he does.
But, I'm reasonably sure that, as long as my name is not on the deed, I have nothing to do with my brother..... right?
Title: Re: Legal Liability for Purchasing a House for Someone Else
Post by: joer1212 on February 01, 2017, 11:28:31 AM
If I buy a house for my brother, and I pay for it with a cashier's check made out to the owner of the house (in this case, the bank's attorney, which will be handling the closing), would I be legally liable in any way in the future should, god forbid, my brother do something illegal involving that house?

Would I be subject to questioning by authorities because I funded the purchase of the house?  Maybe

Would my name be mentioned anywhere on the deed, or other legal documents, at all?If you make it so

FYI: The house will be under my brother's name

If you loan your brother your car and he gets a speeding ticket; do YOU have to pay it?

You have a point there. But, I'm afraid if, god forbid, my brother does something that results in a deep investigation, and they find out that I funded the purchase of the house, I may be considered an accomplice, or at the very least, brought in for questioning.
I am a hard-working, law-abiding man, who's always walked on the straight and narrow my whole life. I am not going to change course now, especially when I'm pushing 50.
Title: Re: Legal Liability for Purchasing a House for Someone Else
Post by: Drifterrider on February 02, 2017, 01:01:06 PM
Just be sure he doesn't run a meth lab out of the house.

Seriously, you are not liable for the actions of related adults. Otherwise, we would all be screwed.

Ain't that the truth!!