@itonewbie if they sold house through real estate broker (which it looks like they did not) there would probably be $25,000 or so in closing costs, so her father saved them this. $300,000 less $25,000 is $275,000 (a lot closer to $252,000). I do not think I have ever had situation like this, but if it is equivalent to arms length transaction, then I would have to lean torwards Iron Man's response.