Buying house from close friend strictly cash on monthly payments

[Nick Cox]

So a friend of mine bought a cheaper home with the thought of renting it out some day. He gave up on that and offered to sell me the house strictly cash. We don’t have a bank involved, we’re strictly on the honor system and I make monthly Payments. I do have my name on the deed with his. My question is when I do finish paying the house off in the next couple months what issues might I run into when getting the deed in my name. Does he just “gift” me the home or do I include my total payments to a title company I’d assume. I’m just not sure what to expect when it comes to getting the deed entirely in my name.

[Ashish Acharya]

Originally posted by @Nick Cox:

So a friend of mine bought a cheaper home with the thought of renting it out some day. He gave up on that and offered to sell me the house strictly cash. We don’t have a bank involved, we’re strictly on the honor system and I make monthly Payments. I do have my name on the deed with his. My question is when I do finish paying the house off in the next couple months what issues might I run into when getting the deed in my name. Does he just “gift” me the home or do I include my total payments to a title company I’d assume. I’m just not sure what to expect when it comes to getting the deed entirely in my name.

He should first sell it to you before you start making payments. Take title in your name, give him a Lien for this security for the note you are going to carry and then make those payments.