How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Tina Your Own Question
Tina, Lawyer
Category: Real Estate Law
Satisfied Customers: 33167
Experience:  17 years of legal experience including real estate law.
Type Your Real Estate Law Question Here...
Tina is online now
A new question is answered every 9 seconds

I am in the process of buying a new home and I want to put

This answer was rated:

I am in the process of buying a new home and I want to put around 30% down. About half of that down payment would be from my retired sister that lives with us. Can we do this? Do we have to treat this as a "gift"? She does not want to be on the mortgage.

Hello and welcome.

My name is XXXXX XXXXX my goal is to provide you with excellent service today. Before I can give you an accurate answer to your question, please provide the following additional information:

Your sister is not lending you the money, but is giving it to you? Will she be included as an owner of the property, but not listed on the mortgage?

I look forward to assisting you as soon as I have received this information. Thank you.

Customer: replied 3 years ago.

She is giving us the money to put down as her contribution to the house. She does not care to be part owner, but I might could persuade her if that was in the best interest. She wants to put in approx. $50000.00

Hello again, Joe.

Yes, if you are not giving anything to her in return for the money, then it would typically be considered and reported as a gift. If she is not interested in owning the property, you could enter into an agreement with her that the money represents rent for a period of months/years or some other consideration so it is not then a gift, but then you may need to report it as income for services/rents for tax purposes.

On the other hand, if you agreed to a fractional ownership interest in the property in return for the money, you would not typically have to report it as a gift or income since she would be receiving something in return for her money, but not from you.

I hope this helps clarify the situation for you. Please remember to rate my service once you have all the information you need so I will be compensated for my time from the deposit you posted with this website. If you have any other questions, please ask me – I’ll be happy to respond. Thank you!


Tina and 6 other Real Estate Law Specialists are ready to help you

Thank you very much for your positive rating of my service. It has been my pleasure to assist you and I hope you will ask for me should a future legal need arise.

If you receive a Customer Satisfaction Survey from JustAnswer, please consider scoring me a 9 or 10. It benefits my ability to assist you and other customers, and would be tremendously appreciated.

Thanks again and all the best to you.


Note: Please feel free to request me if you have future legal questions by typing your new question in the question box on my profile page. Here is a link to that page, which you can bookmark or add to your favorites: I look forward to hearing from you again should the need arise.

Related Real Estate Law Questions