Sale of A Home Subject To A Life Estate
A sale subject to a life estate is a sale of your property in which the buyer takes over ownership, but you get to live in the house for the rest of your life.
The price generally reflects the current value of the property, what the buyer thinks will be your life expectancy, and the terms under which you will continue to live in the house.
The terms under which you stay in the house are negotiable. Generally:
- The seller does not pay rent while living in the home.
- The seller does pay for the maintenance of the home while living in it.
- Taxes usually become the obligation of the new owner.
To avoid potential problems with the purchaser, it is advisable to have a lawyer draft the appropriate documents and file them as necessary.
For information see: