How It Works
How Does Donating Real Estate Work?
Our simplified approach makes navigating the real estate donation process easier than ever. Below, we’ve broken down the complex procedures into six straightforward steps, ensuring a donor-focused experience. From submitting your Letter of Intent to receiving your tax deduction, our streamlined process makes real estate donation a breeze.
Step 1: Get in touch with us.
Simply call us at (866) 912-0707 or complete our online donation form here. We’ll request some information about you and your property, such as:
- Your Contact Details
- The Property Address
- A Property Description
- Any Mortgage Debt/Lien Amounts
- Any Real Estate Agent Contact Details
Step 2: Get personalized guidance.
One of our real estate donation specialists will walk you through the process and explain how everything works. We encourage you to ask questions and have a detailed discussion about your property and your unique circumstances.
Step 3: Submit a letter of intent.
We’ll work with you to craft and submit a Letter of Intent, or LOI. This document is a preliminary, non-binding agreement outlining basic property donation terms, such as the timeline and proposed closing date. The LOI also allows us to move forward with due diligence.
Step 4: We evaluate your property.
We conduct due diligence and a comprehensive assessment of your property. This process aims to uncover any potential issues, risks, or liabilities associated with the property and to ensure that all relevant information is disclosed. This step may include:
- A title report: a document providing information about current and past ownership, property taxes, outstanding liens, mortgages, easements, and other encumbrances.
- A property appraisal: a professional assessment or evaluation of the property’s value conducted by a certified appraiser to determine the property’s fair market value.
- A property inspection: a thorough examination of the property conducted by a qualified inspector to assess its overall condition and identify any potential issues.
- A financial analysis: to review financial documents, such as property taxes, and to evaluate the monetary aspects of the property to assess its profitability, potential risks, and overall financial performance.
- Zoning and land-use compliance research: to confirm that the property complies with local zoning regulations and land-use restrictions.
- Environmental assessment research: to evaluate the environmental condition of the property to identify any potential hazards or contamination.
- Legal and contractual obligations research: to examine contracts, leases, and other legal documents associated with the property to understand existing obligations.
Step 5: Sign the donation agreement.
We’ll both fill out and sign the official real estate donation agreement to ensure a proper and lawful transfer of your property. Then, we’ll sell and liquidate your property for the maximum possible value.
Step 6: Reap your tax benefits.
Upon the sale of your property, we’ll provide you with additional closing documentation and tax deduction paperwork, such as the IRS Form 8282 and IRS Form 8283. Furthermore, we’ll distribute the net proceeds from the sale of your property to the nonprofit organization you specified.
Last Updated: December 20th, 2023