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 Ely Your Own Question
Ely
Ely, Counselor at Law
Category: Real Estate Law
Satisfied Customers: 101939
Experience:  Qualified attorney in private practice including business, family, criminal, and real estate issues.
7286322
Type Your Real Estate Law Question Here...
Ely is online now
A new question is answered every 9 seconds

I own a property rehab company. If I am working with a

Customer Question

Hi I own a property rehab company. If I am working with a client facing foreclosure is it legal or are there any legal issues to watch out for if I have them quitclaim me 51% ownership in the property, I pay off the mortgage in one lump sum payment, make repairs then sell the property and split the profits with the owner?
Submitted: 7 months ago.
Category: Real Estate Law
Expert:  Ely replied 7 months ago.

Hello and welcome to JustAnswer. Please note: This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.

You cannot quitclaim a business. Real estate property can be quitclaimed. So just making sure that this is what you had meant.

It is not illegal to do what you described, but of course the original owner has to be in agreement with all of this and must sign off on all of this. Because your field has many unethical individuals in it, the presumption is that you would be trying to "pull" something unlawful or at least, unethical. Ergo, all steps must be clearly agreed to in writing with the owner.

Also note that once the owner gives you 51% of the property, the lender will likely accelerate the loan regardless meaning it would be do all at once due to the quitclaim, so one should be prepared to pay it off immediately.

I hope this helps and clarifies. Please use the SEND or REPLY button to keep chatting, or please RATE when finished. You may always ask follow ups at no charge after rating. Kindly rate my answer as one of TOP THREE FACES/STARS and then SUBMIT, as this is how experts get credit for our time. Rating my answer the bottom two faces/stars (or failing to submit the rating) does not give me credit and reflects poorly on me, even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith with a positive rating.

Expert:  Ely replied 6 months ago.
Hello again. This is a courtesy check in to see if you needed anything else in regards ***** ***** question because you never responded or replied positively. I am simply touching base. Let me know. Thanks!

Related Real Estate Law Questions