How can I ensure that my mother and daughter can purchase my home upon my death?
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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.