Need Advice Please
My husband and I were preparing to buy a semi-custom house but are now separated and getting divorced. We have given the builder (a friend) a huge amount of money towards this house. We have not even signed a contract for the house and the house is finished. Is there a way to legally back out of buying the house now?
I think what you are really asking is how you can salvage your earnest money.
Talk to your friend about that.
_________________
Mike J
I believe in adding value with quality.[ Edited by mikejaquish on Date 12/03/2005 ]
well its trickier than that....I want out but my husband still wants to buy...and he cant buy me out...and the money we have given the builder comes from a line of credit against a house I own alone (but both of our names are on the line of credit....)...so I am looking for a legal way out if possible based on the fact we never had a signed contract in place...any help?
You need advice from a CPA experienced in real estate for Texas and an asset protection attorney.
I would like to offer a question as help. What are the tax consequences for Texas of other forms of ownership? That is are only LLCs subject to this 4.5% tax. What is the Texas tax treatment for income derived from real estate for LPs Limited Partnerships, Trusts, Corporations, and foreign entities (businesses, trusts, partnerships, LLCs, Corporations, etc. formed in another state)?
You researched enough to determine the tax regarding a LLC, why stop there? Call the revenue department for Texas. Find out the tax treatment of other types of entities, both in Texas, and for ones formed outside of Texas, and then discuss with a CPA and asset protection attorney.
Hint, you may need more than one entity, possibly in more than one state, to both minimise your tax burden and limit your liability.