Seller-financing inherited property within the family

[Travis Beatty]

Has anyone ever done seller financing with an inherited property within your family? 

My grandfather passed last year, and I have inherited 1/3 of his estate, my parents have the other 2/3. I told my parents that I want to buy them out of their 2/3 ownership of the home, and eventually use the house as a rental property. My parents have proposed the idea of me paying them a monthly mortgage for the next 10 years until they get their 2/3 value of the house. Their only stipulation is that I don't rent the house because they don't want to have to worry about the house being in their name with a renter in the home. 

If I own 1/3 of the home based on the will, is there some sort of a contract that I can do with my parents that does not make them liable for anything that might happen once a renter is in the home?

I have also considered taking out a mortgage and buying them out, but I'm thinking that if I can do some seller-financing type deal then I can get it for zero down and they don't have to worry about being legally responsible once I get the house rented. 

Thank you for reading my long post, any input is appreciated. Have a great day!

[Ian Murray]

Maybe do a quitclaim deed transfer, putting the house completely in your name, and have your parents hold a first position lien on the property.  That would make you the owner and them the bank.  They wouldn't be liable for renter issues anymore than a bank would be.  

Double check with an attorney for the exact mechanism, but something like that could work.