[MT] What kind of agreement do we need to buy our mom’s house before our VA loan is finalized?

MT Real Estate Law

Queeneth E. Esq

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Since this is a family-to-family sale, you’re smart to want the agreement tight so there are no misunderstandings later (especially because you’ll start with private payments and then refinance with a VA loan).

You’ll want to include the following:

Parties
Seller: Mother’s full legal name
Buyer(s): Your full legal names

Property description
Use the full legal description from the deed, not just the street address.
Clarify it includes all 3.13 acres, the main house, and the doublewide.

Purchase price
“The total purchase price for the property is $_____.”

Payment terms
Buyer shall pay Seller $3,000.00 per month, beginning on [date], at 0% interest, until Buyer obtains VA loan financing.
Specify how payments are made (check, transfer, account).
Clarify that payments are credited toward the purchase price at closing.

Financing clause
Buyer intends to obtain VA loan financing to complete the purchase.
Seller agrees payments made prior to closing are applied toward the purchase price.
Include a timeline (for example, within 12 months, or another agreed period).

Closing and title transfer
Title transfers once the VA loan closes.
Seller retains legal title until closing.
Address possession if Buyer moves in early.

As-Is clause
“The property is sold in its present condition ‘AS IS.’ Seller makes no warranties as to condition.”

Default and protections
Specify what happens if the VA loan cannot be obtained (payments treated as rent, renegotiation, etc.).

Other standard FSBO terms
Earnest money (if any).
Closing costs allocation.
Governing law (Montana).

Signatures
Buyer(s) and Seller(s), dated.
Notarization recommended, especially for VA loan purposes.

Additional recommendations:

Consider using a title company now to document payments cleanly.
An Installment Land Contract (Contract for Deed) or Promissory Note with a recorded memorandum can protect both sides.
VA lenders can be strict about private arrangements, so attorney review is strongly recommended to avoid financing delays.

Before signing, I recommend both you and your mother have a Montana real estate attorney review the FSBO contract and payment terms to keep everything enforceable and lender-compliant.

Montana Residential Purchase and Sale Form

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We are purchasing our mother’s home in Montana. We wanted to have an agreement written and in place. We have several factors going into this purchase. Selling our primary home in AZ and buying a smaller home closing on 09/23. Once this home sells we will be obtaining a VA loan to complete the purchase of the home in Montana. We wanted to have a legal agreement and make payments to our mother. I have amended the purchase agreement to a FSBO. We are buying the home “AS IS.” Can you review this?

Lexi, Chatbot

I understand that navigating a home purchase can be complex, especially with family involved. Can you tell me if there are any specific terms or conditions you want included in the agreement with your mother?

The purchase price, the purchase of all 3.13 acres that include a main house and a doublewide. Terms would be 0% interest and monthly payments of $3,000.00 until we can get a loan.

Lexi, Chatbot

Have you already discussed the payment structure and timeline with your mother regarding the purchase?

Yes.

Lexi, Chatbot

Is there anything else the Real Estate Lawyer should know before I connect you? Rest assured they’ll be able to help with your purchase agreement.

No — not unless the attorney has recommendations or correct verbiage.

Queeneth E. Esq

Hello! My name is Queeneth. I am an attorney with over 8 years of legal experience. I will do my best to assist you today. First, I need to ask you a few questions to give you the best answer. (Kindly note that our conversation does not establish an attorney-client relationship.)
What state is your legal issue related to?

Montana.