Question for Real Estate laws

[Tsaico]

Can you sell your real estate for whatever price you want? What I mean is, say a home is estimated at 300k, if you wanted to, is there any law preventing you from selling it for 200k? 100k? Would it change if it were my direct family? I checked out the Real Estate law page for california, and the 300 or so pages seem to fall within Realtors, not individuals.

 

[Argo]

While there may not be a law against selling it, it may cause the buyer a lot of headache down the road. Don't quote me on this, but if said person decides to sell the house down the road, he/she may end up owing taxes on the difference between sell price and the "discounted" buy price.

 

[smack Down]

Originally posted by: Argo
While there may not be a law against selling it, it may cause the buyer a lot of headache down the road. Don't quote me on this, but if said person decides to sell the house down the road, he/she may end up owing taxes on the difference between sell price and the "discounted" buy price.

They would pay taxes for capital gains no matter what. Ignoring the capital gains exceptions on property held for 2 years.

If it is not an arms length transaction then you may have to count part of it as gift and you many not be able to use the sales price as the price for property tax value.

 

[Pepsi90919]

trying to burst the bubble?

 

[bennylong]

Sure, you can sell a $300k home for $10k if you want, but the IRS might consider that a gift and you'll end up paying gift tax.

 

[IHateMyJob2004]

The only law is stupidity.

 

[imported_weadjust]

Sure you can. Mike Vick did.

http://www.wvec.com/news/local...107_vick.5d8c3300.html

Dozens of pit bulls were seized from the home NFL quarterback Michael Vick owned in Surry County last month. 13News has learned that Vick has sold the home at the center of the investigation.

It was a quick sell. On the same day it was listed, it sold. The asking price was $350,000, nearly half of the assessed property value.

 

[alkemyst]

You can deed a property to anyone without selling it.

The laws on deeds can be complex.

If you have a justified reason (like a gift) then you have no problem, if you are trying to get a difference paid in cash on the side or in trade then you may have a problem.