question for a seller- finance property from a relative

[John Allen]

I am purchasing a property from my father-in-law. He is over 80 and can no longer take care of it. It needs a roof and presently does not have any liability or insurance of any kind. I have multiple questions. I would buy it with a quit claim, I feel extremely confident that at this time there is no liens or financial encumbrance's on the home and paying for a warranty deed is not needed. I would be creating a contract and paying him a monthly amount. The home is completely paid for no mortgage exists and he had received the home from his mother in law and been in family for 20 years plus.

Any concerns I am not aware of with changing title via quit claim?

Is it possible to get a insurance policy on the home with a permit filed to replace roof?  Family members  will replace roof without a contractor and I want to be covered for accidents.

With quit claim are there any tax issues that I may not have thought of?

Thank you

John Allen

[Jeff Copeland]

While it may be perfectly safe and appropriate in this case, there's generally no reason to use a Quit Claim deed over a Warranty Deed. Do some research on this - Cost shouldn't really be a factor; Neither document is particularly complicated. 

If you are doing seller financing, whoever prepares the mortgage and promissory note should also be able to handle the deed (most likely your title company of choice here in FL). 

Here's a great overview of the process involved with seller financing: 

https://www.biggerpockets.com/member-blogs/6405/90747-the-dark-art-of-seller-financing-explained

[Justin Bauer]

Just something for you to think about is if your father in-law has to go into a skilled nursing home and can not pay for it they will come for that property. Have a llc purchase it and pay cash for a discount. Just my to cents