Most of the issues sound to be more directed towards tax avoidance and should be directed to a tax attorney. Sounds like someone may be trying to avoid both income tax and an increase in the County tax by not reporting the transfer; both of which have the potential to be criminal.
Another issue is with the home equity loan. All home equity loans will not allow a borrower to continue to make withdraws after they have transferred the property. All of the loans I have seen will immediately call in the loan if their is a transfer of ownership. If any withdraws are made after the transfer of ownership, there could be fraud allegations.
The more it seems wrong, the more likely it is wrong. Both You and your parents really do need an attorney. If you want to discuss the HELOC issues and its potential on any land ownership issue you have, please give me a call next week.
Kevin A. Spainhour, Esq. Spainhour Law Group www.slglawyer.com.
You answered your own question: "A real estate attorney is a must for me." There are far too many issues involved and competing interests, as well as potential tax and even criminal problems with the schemes proposed. There are potentially acceptable plans that can be worked out but it will take some work with a real estate attorney/tax attorney.