How to buy real estate from a friend

How to buy real estate from a friend

Attorney Tom Olsen: Brody, you're on News 96.5. Go ahead.

Brody: Thank you for taking my call.

Attorney Tom Olsen: Sure.

Brody: I don't know anything about Florida law, but I'm looking-- have friend that wants to sell some property out in Florida, just regular property. He just wants cash and it's not that much. Now I was thinking about purchase of it, but I just don't know what I need to do, how that works or whatever. I bought a home and I went mortgage company --

Attorney Tom Olsen: Brody, what would the purchase price be?

Brody: He wants $35,000 for it.

Attorney Tom Olsen: Brody, even though you're buying this piece of land from a friend, there is no opportunity here for you guys to cut corners. Brody, it starts as always with the contract for sale and purchase to make sure that you guys are on the same page. There's going to be a closing where documents and monies change hands. You get title insurance that will ensure to you that you're getting this piece of property free and clear of all liens and encumbrances. In other way Brody, this is not going to be a handshake deal, where you write them a check for $35,000 and he does a homemade deed to you. You need to do the formal process from contract through closing, including title insurance.

Brody: Do I need to contact a lawyer or a realtor?

Attorney Tom Olsen: Yes. Brody, contact me. I'd be happy to help you with that entire process. Brody, the easiest way to reach me is through our website at lawtube.com. Like YouTube, but lawtube.com. Contact me there, Brody.