When purchasing a home from a family member, the first thing that you have to do is forget that you are purchasing from family and be prepared to take all actions that you would normally take if you were not purchasing from family. The second thing that you must do is hire professionals who will see you through the process and protect your interest in the transaction. Let's face it, negotiating with family is different - you may make concessions that are not in your best interest. Having real estate professionals to "BLAME" for your due dilligence and fair consideration of all issues can be very conveninent! Above all else:
DO NOT TAKE SHORT CUTS!
Shortcut number 1. Do not use your family's listing agent as your buyer's agent. People may have different opinions, but I can tell you that I would not want to be a dual agent in the middle of a family fight. Keep it separated and there will be no hard feelings if there is a dispute.
Shortcut number 2. Do not skip inspections. Just becaus you lived in a house all of your life does not mean that you have been aware of all of the structural issues in your home. You actually get used to the imperfections to the point that you do not question them at all. You probably would view a home that you are familliar with much less critivaly then a strange home and you will pay for it later.
Shortcut nuber 3. Many clients ask if I can "represent both sides" of a transaction because it is "family". These are the deals that can be the most difficult. For example, just because your family has had a title to a property for 3 generations does not mean that the title is clear. If a dispute arises over the ownership, money , conditon of the property, or client confidences, you need to have your own attorney.
If something goes wrong, who would you rather blame (read sue) your family member or your attorney's malpractice insurance carrier?
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