Posted by Natalie-VA on June 09, 2005 at 19:51:28:
Yes, the fees are based on the amount. In this case, a $190,000 DOT would cost about $755 to record.
Only a small amount of that is the clerk’s recording fee. The rest is tax stamps to the city and the state.
I am looking into recording a notice of lien or memorandum of lien, but am not getting the answers I like, so I will continue to search. I just believe there has got to be a less expensive way that it still valid.
How can I encumber this property? - Posted by Natalie-VA
Posted by Natalie-VA on June 08, 2005 at 13:10:24:
Our LLC recently purchased a rental property. We obtained a private loan and have not recorded a Deed of Trust against the property.
On of the reasons for obtaining private financing is to save money. If we record the DOT, it will cost approx $755.
As it stands now, it appears that we own the property free and clear. I see this as a liability issue.
Is there a less expensive way to encumber this property?
What sort of lien could you record against it that wouldn’t cost as much as recording a DOT? This is in Virginia.
Protecting Equity - Posted by Rick Harmon
Posted by Rick Harmon on June 09, 2005 at 18:29:10:
I’d record a “Protective” Trust Deed, which is basically evidence of an amount equal to your equity reccorded in the form of a loan from a “friendly” entity (other than your LLC) to your LLC. Officer of LLC executes TD in favor of this friendly beneficiary which discourages others from chasing after your equity. It is also useful in the event that someone slanders your title by recording another deed behind yours.
I had a Seller who gave out two deeds without our knowledge. Ours recorded first but we still had to deal with the slandering deed. Now, if some idiot pulls this stunt again, we merely foreclose on our “friendly” protective deed; presto-chango, bad deed gone.
The one thing that I’m very uncertain about is: do you have to pay a large fee merely to record a DOT in Virginia? In California, we only would pay for the cost of recording each page of the document, rarely over $50.00 (plus transfer tax if doc is a Grant Deed).
Hope I’m not missing something vital here.
Rick Harmon