Buying House from Parent With Unique Circumstances

[Kristi Monighetti]

In 2018 I separated from my husband and needed to buy a house. Due to my pending divorce my dad helped with my house, I put the money down to buy it and he obtained the loan and also left me off title (long story there). Fast forward 5 years, it's time for me to take ownership of said house. I have read so many different things and would love to hear what the professionals have to say about taking possession. My dad and I have a written agreement that he would sell the house to me for what "we" bought it for 5 years ago, obviously the value has increased as well as rates. Can he just add me to title, should I do a sub too? What else should I be looking into?

Sidenote, my dad is open to what works best but has also cautioned me there will be a gift tax involved and probably a step-up in basis.