What tyo do if a home was purchased under the first-time home buyer credit and one owner wants out before the 3 years is up?

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What tyo do if a home was purchased under the first-time home buyer credit and one owner wants out before the 3 years is up?

A former friend and I purchased a single family house 2 years ago and we received the firsttime home buyer credit. It is a tenancy in common situation where we both have equal rights to the house. I have gotten married and would like to sell out my ownership in the house to go and live elsewhere with my wife. If I go ahead with this, will a portion of or the entire tax credit have to be repaid?

Asked on April 3, 2012 under Real Estate Law, Connecticut

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If you sell out your interest in the home that you purchased before the three year time period is up, you will be required to repay your portion of the tax credit that you received. I suggest that if your former friend wants to buy out your interest in the home, that you sign a contract with respect to the terms of the buy out and close escrow after the three year period with respect to the pay back of the tax credit is over as to your interests in the property.


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