Also, if you plan to finance non-owner occupied residential properties or lease/options, you need to be compliant with the SAFE Act and state law.

Sudan, Yemen, Tunisia, Lebanon, Morrocco and supposedly American and Israeli flags are being burned in London.

I just educated myself on real estate contracts and am working on learning the applicable laws in Michigan.

http://www.chicagotribune.com/classified/realestate/foreclosure/sc-cons-0913-strategic-default-20120913,0,4134066.storyI think it is particularly interesting how they indicate that they will pursue you for "abusing" the system, not because you broke the rules or the law.

-Steven the Tax GuyYour guide to IRS laws, rules and regulations.

My in-laws: their parents in their 90's are moving to assisted living.

In this case, since they did not sign any contract, and since they are illegal subtenants (in strict sense of the law), I don't know if any of these legal notices would be valid in court.Does anyone have any ideas on what I can do?

Realize that's kind of a wimpy answer, but before you start requiring licenses, bonding, and insurance, I would figure out your state's laws and your actual potential liability.

There's many variables, such as state real estate law, how do you hold title, what agreements do the two of you have, etc.

If you are holding less than a year you would get hit with short term gains.If you hold for a years time you would get hit with long term capital gains.If you defer the gains with a 1031 after holding a year and selling to the city then you will not pay anything if done correctly.While there is no rule on 1031's case law and 1031 companies site 1 year as being safe to do a 1031.Anything less than that and the IRS has been challenging you are holding for resale purposes and not investment purposes.Simply have the city purchase after your 1st year of ownership is up if you want to avoid the gains taxes and do a 1031.