Full question:
I own two properties, not paid off. I want to convey the right to purchase the properties to my mother and daughter if I die. How can I do this?
- Category: Real Property
- Subcategory: Sales
- Date:
- State: Washington
Answer:
In property law, a right of first refusal typically allows a buyer to purchase property by matching another offer. It is the right of a party to match the terms of a proposed contract with another party. A right of first refusal provides different assurance than a will that states that a certain child(ren) will receive certain property at death. A person can change his or her will without the benefactors knowing about it. A right of first refusal is a legal document that limits the seller’s sales options.
It also may be useful to provide certain persons with purchase options in a will. Frequently the purchase provisions are favorable to the child(ren) purchasing the property. One problem with a child(ren) relying on a parent’s will is that wills are easily changed without the child(ren) knowing until after the parent’s death.
It may also be possible to transfer the property to a trust and instruct the trustee on how to dispose of the property upon death. Because of the tax implications and other coniderations involved, I suggest consulting a local attorney who can review all the facts and documents involved. Typically, a transfer made by descent won't violate the due on sale clause, but I suggest also consulting with the maker of the loan, as sometimes a mortgage will contain a due on sale clause that will accelerate payments due if a transfer is made without the lender's approval.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
