Posted by Anna on August 06, 2011 at 24:37:10:
John, thank you for your answer.
Taking title - Posted by Anna
Posted by Anna on July 28, 2011 at 21:53:12:
Hi guys, in an option agreement and/or assigning a contract, do you ever take title to the property? Is it just the end buyer who is on title?? Thank you.
Impractical in some places and deals - Posted by John Merchant
Posted by John Merchant on August 01, 2011 at 15:18:18:
Sometimes there could be valid reasons for my taking title but it’s
not always practical because of state tax reasons-e.g. here in WA
State we’ve got a high state excise tax on total purchase price that
has to be paid whenever title changes.
So if I took title first, then conveyed to my buyer I’d have to pay the
full state excise tax and my subsequent buyer would also.
But this could well be the better choice for me if I have doubts about
my S really delivering when he should and I’m getting such a deal that
the tax is insignificant to bargain I’m getting.