Title Transfer for Seller Financing

[Mark Krusinski jr.]

Hi,

My brother and I are currently in the process of buying a house from my parents. It is a duplex located in the Cleveland Ohio area. My parents do not want to pay capital gains on the property at the moment but are looking to get the property off there hands soon. We are looking to do seller financing with this property (my brother and I are in collage and were unable to get a good loan from any banks). With seller Financing, would by parents have to pay capital gains tax on the property? Also do we need a title transfer before we start the seller financing process? 

This is our first property so we have been doing a lot of research. We could not find find anything about this question that we had online. If someone could help up out on this question that would be awesome!

Thanks a Ton!