Advise on moving on families property

[willows2water]

I have a cousin who has 20 acres and has offered me a building spot for a 1000 sq ft place if I would like. She and I both believe the same in religous and homesteading beliefs. Now we have not talk specifics about how this would come about. My concern is my rights since I will not own the land and how I should protect myself for the future. We have plans to share gardening and the care of the animals , but I think that we need something on paper so that I will not lose out if they decide some day to sell the land or worst yet kick me off. Any ideas??? Thanks,Heidi

[Dixielee]

Circumstances do change and you are wise to consider them. I would not do it if I could not own the piece of land my house was on. Relationships change. If she wants to move, or is married and they divorce, what happens to you? You will have made the improvements, but would only have the rights of a renter. Why not work out some kind of agreement to make payments if needed, but get a deed for your part of the property, even if it is only 1/4 acre.

The work load will be easier to work out if you know you are secure as a home owner. Otherwise, there will always be a resentment on your part, and a hesitancy to put forth what you may otherwise put forth.

[marvella]

i've considered offering this to someone as well, so i am interested.

what i am wondering is... what if it were set up like a life estate? the land and house is theirs until they die, then it reverts back to me. all building and development would be thier responsibility.

does that make sense? would it be possible?

[spam4einstein]

There are ways to do it such as a 99 year lease..BUT WHY WOULD YOU NOT JUST HAVE THAT ACRE PUT IN YOUR NAME! Its the common sense thing to do. Cant give any real advice till we know the situation better. Sound like a hirbrained idea unless there is a VERY good reason why you cant put that acre in your name. If there is a goo reason..tell us so we can better advise.

[js2743]

dont do it unless its deeded to you and also make sure if you have to travel through her property to get to your spot that you have a right of way to it also. Cause your family will do ya wrong before any one else when it comes right down to it. cause if something did happen between you two it would be a power trip for the cousin to just kick you out.

[scaryguyoy]

Have a contract written out with all the pertinenet facts .Ive always heard that if someone gets mad about the fact that you want it in writing then thats exactly the person that you should get it in writing for.
scary

[PyroDon]

I can understand making the offer I can also understand the property owner not wanting to deed the property over . A lease would indeed be the best route
however keep in mind you would still have to keep up the taxes on the portion of property . while a lease would afford some security (namely not being kicked out as soon as the house id finished which some might well do) it would also allow the owner to keep the property in on piece . Such a lease would need a provission incase the property was ever sold .

[TnAndy]

Don't do it. Family deals often turn into THE most expensive free land you ever got.

Buy it...pay fair market value, and hope your friendship continues for life.

[hoofinitnorth]

You've heard suggestions of purchasing a piece, leasing a piece, or setting up a life estate for a piece. Will your sister consider building a place and then leasing the finished place to you (where she can't just kick you out willy nilly at least until the end of the lease term)? This way you haven't exposed yourself to big losses if you get kicked off the land (cost of the house, etc.) and she owns the house without any argument so if you want to move out at the end of the lease she gets to use it for herself or rent it to someone else. It also makes the parcel on which it's built potentially more marketable and valuable so that is a plus for her. If she subdivides it off she can sell it that much easier.

[Iddee]

If you are going to finance the building of the house, you will have to have the lot in your name to get a loan. They do that for a very good reason and you should heed that reason. Don't even consider building on someone else's land.
If she really wants you to build there, she will give or sell you the lot.

I have been in 2 such arrangements. Before I enter into another arrangement with family I will "shoot myself in the head". Buy the land. Buy some land nearby. Park a motorhome on her property so you can drive off at a moments notice.

[rambler]

It is possible this will owrk out well for you & them.

It is also possible it will become a nightmare. I really kinda like Lonelytree's message, obviously from the road of tough knocks. That would be 'my' opinion.

Own it, or lease the completed building for long-term.

If they own it, you build it, there are a lot of issues if anything goes bad in the relationship. How do things get split up then?

The other problem will be local building codes -would be a real issue 'here', and for sure insurance issues. Insurance is used to retail & commercial build/lease situations, but they are not used to private homes built that way. You might have troubles getting home, fire, and mostly liability insurance. I would at least ask around on this. If you don't fit into a nice little check-box forum, then they have problems....

There are ways to do this, but you do need to ask questions & protect yourself. Glad you are doing research on it.

--->Paul

[spam4einstein]

There seems to be a hang up with some people over PUTTING STUFF IN WRITING. I dont know why a few folks still think that it is somehow rude to have a formal arangement. Prevents hard feelings when its clearly spelled out.


A favor is a different story...but anyone with a lick of sense dosnt mix huge financial obligations with simple favors. She may be doing you a favor and not willing to sign over that land. If thats the case she clearly sees this may not last forever and has the sense to cover her rump. Do the same and use a mobile home so it can be moved or buy the land.

[seedspreader]

I wouldn't do it, too many issues later. Unless the land is in your name and legally surveyed off, then it would be ok, but trust me, there is a LOT of risk in this situation.

[DixyDoodle]

there is a LOT of risk in this situation.

I totally agree with this! If it were me, what I would do is say something like, "I know we're family and all, but I just wouldn't feel comfortable in just taking and using part of your land like that. How about you just give me a price, and I'll pay you for the land instead." Then make up the legal documents.

I think most family members would understand that if you "buy" it, you would want legal proof in case someone comes asking. Even if they just decide to sell you the land for a couple hundred bucks. You can always tell them that you would be afraid that if something happened to them, you would be afraid to lose your home, you know what happens when the lawyers get involved (no offence to any lawyers here! LOL). Surely they would understand that.

If for whatever reason your cousin doesn't want anything in writing, there is nothing you can do to stop someone from getting you off that land in the future. What if your cousin had good intentions but died tomorrow? Who can say who said what? Sure, you can say it in front of a witness, but what if someone else refutes it? I would also be very suspicious if they absolutely refused to do any paperwork on it.....it may be that although they want to be 'nice' to you, they aren't willing to actually let the property go. Not a good sign.

Those legal documents will be all that could make the difference.

DD

[Hoop]

Read what happened to my neighbor. Joes father married a woman who later inherited 16 million. Joes father & step mother own 220 acres, which includes a 2 million dollar lake home and a mega sized commercial horse barn. Maybe 60 acres is pasture and the remaining 160 acres is undeveloped forest land. The land is prime for residential developement and land prices in the area are roughly $10000 - $15000 per acre. Perhaps 10 years ago Joe had a house built on some of his father & step mothers property. The land was not plotted or in any way legally set aside.

Joes step mother has cancer and wasn't expected to live long. Joe stood to become an heir to a sizable estate. Last year, Joes father died suddenly. He had no will and everything went to his step mother. The widow has 4 children of her own, that will inherit the property. The step children (including Joe) will receive nothing from the estate.
I spoke with one of the sons of the widow, who jokingly told me they may tell Joe to move his house off their land.

In a twist of fate, Joe went from being in a position to inherit a sizeable estate to literally being thrown off the land.


This is not a typical situation. It does however, show that life makes unexpected twists and the future is uncertain.



At the very least, you need to determine if this property is "right" for you. Unquestionably, it should be legally parceled off and you should have a warranty deed to the property before any building takes place.
You need to ask yourself if this property is where you wish to stake out your future. Is the property zoned? Are you comfortable with a trailer park, hog rendering works, dog kennel, automotive junkyard, etc springing up next to you in the future? Never assume that things will stay the way they are forever.

I tend to agree with others that suggest one should avoid getting involved with relatives.

[mj1angier]

Set up to buy the land from her at far market value and then have a contract that she has first right of refuseal if you want to sell out - again at fair market value

[Shadow]

Do not build on land you do not own.

[Bluecreekrog]

I'm again' it.

[Maura]

Buy the land.

If you decide not to buy the land, contact your lending institution and permits department before you make plans. The bank will not lend you money. The township may not allow you to build a second home on the property without first seperating it. That is the way it is in our township, you cannot have two houses on one parcel of land. There may be trouble with getting a permit for the well and septic for the same reason, though usually they simply specify you need a minimum amount of space and that any septic field must be so many feet from any well.

And what about property taxes? Some assessors will make a seperate assessment of the house from the land. Some will not. Some states will not let you do this, in which case you will eventually have a nightmare over who owes what in property taxes, especially if your assessor doesn't keep good records.