Tulsa, OK · Member since 2017 · 64 posts · 9 votes
I am extremely interested in a property in Life Estate Hold. Does anyone have any experience with how to purchase such type of property? I have sent an email to one of the trust representatives and also mailed out a marketing letter to the supposed current owner.
Any suggestions would be great. This house is near mine and has stood vacant for three years now.
Rental Property Investor · Edmond, OK · Member since 2016 · 78 posts · 86 votes
9y
@Jaime Brame Do you know the current title situation? That is, do you know who the life tenant is, and who the remainderman or remaindermen is/are? I'm assuming the life tenant is deceased. A lot depends on the date of death.
Rental Property Investor · Edmond, OK · Member since 2016 · 78 posts · 86 votes
9y
@Jaime Brame Do you know the current title situation? That is, do you know who the life tenant is, and who the remainderman or remaindermen is/are? I'm assuming the life tenant is deceased. A lot depends on the date of death.
Title Representative · Norman, OK · Member since 2016 · 35 posts · 24 votes
9y
From the description it sound like you have a life estate. This means their is a life tenant who has the right to possess the property for the remainder of the their life, but does not necessarily own the property. Once the life tenant has passed away, the property will go to the remainderman, so you really have 2 "owners". You could chose to market to either or both. Really your only special considerations are if the life tenant is still living, determining who signs the deed, and setting up the deed correctly.
If the life tenant has passed away, you'll need the remainderman to sign the deed.
If the life tenant is still alive, you'll need both the life tenant and the remainderman to each sign off their respective interests.
If only the life tenant were to sign you don't really own the property since the remainderman has an outstanding interest. If only the remainderman signs you don't have a right to use/possess/occupy the building because of the life tenant. Technically you could make arrangements to buy the property now at a much lower price so the family can use the money immediately with the life tenant remaining until their death when it would revert to you, but that gets pretty sticky. I only mention it in case you might be able to get the property at a ridiculous steal that way.
By the way, if you aren't sure how the title (aka name on deed) is held you can try to look the deed up through the County Clerk's office and see who is named on it.
Architect, Green design/build consultant · Fort Worth, TX · Member since 2015 · 62 posts · 12 votes
8y
@Erica Bird, I have come across a property with a Ladybird Life Estate Deed and a General Warranty Gift Deed. The life tenant/owner of the property is still alive, and occupies the house. The remainderman is a niece. This deed was put into effect in 2015. The grantor/owner retains the right to convey it to anyone she wants, and has full power, without the joinder of any person, to amend, or revoke the deed, sell the property, lease it, or do whatever with it without sharing any of the proceeds.
The kicker is the owner has not been paying property taxes since 2008, and hence is delinquent. The property is homesteaded, yet I do not understand the county being so lax in collecting the property taxes.
If I offer the life tenant/owner of the property to pay off her taxes in lieu of becoming the remainderman on the deed, how will I make sure she does not transfer it over back to herself even, once I have paid the property taxes? I want to know how to secure my position. Also I can always put in some money for the current remainderman, if and when I get the property. I intend to let the life tenant/owner stay in the property till she moves to a nursing home/assisted living, or passes away.