P.S. This is not the same house that I posted about in the "1964 house" post.

Usually it's a lender requirement, check with the lender.

Sorry, I should have said there won't be a lender; my son will be making a down payment and then paying us over about a 3-year period. So my concern is if it would be required by some other agency or entity.

Thanks for your answer.

Termite reports are normally required by lenders to conform to HUD lending standards.

Thanks, but there won't be a lender in this case; my son will pay us out of his own funds and then pay us a specified amount each month until it's paid; should be approximately 3 years. So I'm asking if there's some kind of governmental regulation that says there must be a termite inspection.

I am not sure, but for your and your's son protection I see no problem getting a termite report. They are not expensive but get a licensed termite inspector. Depends on the area, they might not find termites, but could find wood ants which can do almost the same amount of destruction. We lived in a rural area, house 4 feet off the ground but had to watch wood (trees) in area due to wood ants. We had our house and area sprayed once a month which did cut down insects inside and outside. The company used a herbal base which did not harm pets.

You know, mariend, that's probably the best solution. I assumed without having researched it that it would be horribly expensive. I need to do my homework. Thanks again.

Please also have an attorney draft up the contract between you and your son. The worst kind of things that go wrong go wrong between family, and you need some type of legal document to protect yourself and your son. That way, both of your expectations and responsibilities are clearly spelled out and there is no grey area to cause conflict. Treat this like any other home sale.

You guys are all giving such good advice. I actually called a several "real estate" attorneys in California (we're in Colorado now) and I couldn't get much of a response out of them; don't know if they thought there wouldn't be enough money in it, or too many pitfalls for too little money, or what. I used to practice as a psychotherapist in California; believe me, I know the worst troubles can be family troubles, and as much as we all love and trust each other, I need to give this a lot of thought.

I've done a little research on books advising FBSO sellers; haven't found one that makes me feel confident though.

Thanks again to everybody.

When I sold my mom's Calif. report, the seller was required to get a termite report & repair termite damage according to the standard Calif. contract. I'm sure that lender's there would require it. Since termites are widespread problems in Calif., I'd get the report & see whether it's a problem or not.
With a private sale, no one would probably require the report
Susan

Beside a terminte inspection, I would get a legal bill of sale, and also go over everything with your son--just as if it was a stranger buying your place. If you are in LOS Angeles county you can ask the Building dept for an occupancy inspection. They will find anything that could be dangerous to his health, like furnace, water, etc. They look for saftey issues, and structural issues, but be aware, if they do find something, especially if you have remodeled or built without permits, the will make you correct them and/or pay a penalty.

The reason to do the paperwork correctly is that you never know what will happen. You want to be certain that there is an appropriate deed of trust showing that $$ are owed to you and the amount of the monthly payment. If anything happens to him you are still entitled to be paid. You want to be sure the grant deed you give your son gives him good title. You want proof of insurance so that if the house burns down--all is not lost. Also there is paperwork which will help him get a lower property tax rate because of the parent child transfer--I'll bet thats not in your book.
A book on real estate is not going to help any more than my reading a good book on family counseling would help solve a family problem. You certainly don't need a real estate agent. You already have a buyer, and agents have no business writing contracts other than listing agreements and escrow instructions.
You need documents prepared to reflect the terms of the loan (including on what terms that loan can be transferred)
An attorney will suggest things to think about: what happens if you die or if you need the money to pay for expensive medical care? If your son dies who would take over the house --do you want the loan to be as generous with that person? Have you made the loan one which cannot be sold? Is the loan so generous that the IRS could consider it a gift? This should not be a long chat with an attorney, and you only need a few documents drawn up. Some lawyers charge a set fee to do it. Call and ask.
A termite report is not a requirement and I would bet your son knows what the property's problems are --I would guess he knows the property well.
One reason attorneys are not overly enthused about projects like this has nothing to do with the money. Its because with family transfers there can be more problems.

marge727 -- Thanks very much for your comprehensive answer. I hope I've thanked everybody else for their input also. I'm printing out this whole thread so we can all read it together.

Actually, my son isn't that familiar with the property --none of us have been there for a while, it's rented out now. We're his beneficiaries if he dies so we can take care of his almost-grown children, but of course that could change.

I've actually left a message with an attorney (son of the attorney who handled the contract when we bought the property in 1987) --maybe he'll be willing to write us up what's necessary. DS, DH, and I are all going out there to look at the property together in a few months. We had planned to retire there, and DS plans to build a big home as a family "retreat" there in a year or so.

Again, a huge thanks to all for the help you've given me.

Silly to post this, who cres, but just to avoid confusion, we HAD planned to retire there. Now we're in what we hope is our final home in Colorado.

I really would work with an attorney, if you are planning to sell this home to your son. If you have owned this home a long time, your taxes would be quite low & when sold, they will rise dramatically -- Calif.'s unique property tax laws. If the taxes are low, an attorney might find a way for your son to keep your tax rate -- such as a lease.
My mother died about three years ago. The taxes on her LA home were $700 per year. As her daughter, I inherited her tax rate. (I understand that only sons and daughters can inherit the tax rate in Calif.). When I sold the home, the taxes rose to $6,000 per year. So, if you have low taxes, it might be helpful to consult an attorney about this. Good luck
Susan