Posted by John Corey on April 22, 2006 at 18:43:05:
The advice has been offered. This is how the folks who commented would do the deal.
If you want to ignore the advice or otherwise do a deal that appears to some of us as being a bit naked then that is your call. Just do not try to justify the decision. We will still think it is a bad one. Even if everything turns out OK in the end that does not mean you did the right thing. Just that nothing bad happened.
Insurance is for situations you can not afford out of pocket. Hence the logic to using an escrow process and obtaining title insurance. There is no law that says you need insurance. If you can make good on the deal no matter what or the relative will still like you if they have to eat their investment then all is good.