Seller Name Change
I signed a subto deal today with a seller that is getting married on the weekend. Before I get this closed next week, she will have a new name. Therefore she will have one name on the purchase contract, and another on the closing docs. I assume the title company will handle this with respect to aliases. Anything I need to be aware of in this situation?
Thanks,
Swaf
A woman does not always change her name due to marriage.
Title company will probably prepare settlement docs in the name on the title and on your purchase agreement and ask her to sign the deed and the HUD-1 with that name.
Thanks,
I appreciate the quick response!
Swaf
They can do anything you agree to or allow.
Personally, I withold my signature on the sale until the money is available and ready to be paid. I have walked several times and came back to sign when the money was available.
Must be my Chicago upbringing to be so paranoid... or is it just good business practice?
Personally, in a situation like this I would immediately record a memorandum of of contract to cloud the title until I get paid and consult an attorney.
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thanks
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ersonally, in a situation like this I would immediately record a memorandum of of contract to cloud the title until I get paid and consult an attorney.bargain76,
Why would you cloud your own title on a property you are selling? I guess I am just being dense, but this does not make any sense. Please explain.
Hi Billy,
There is really no good place to park 1031 exchange funds in order to keep them liquid for 2007. The code and regulations require that you have the intent to hold your like-kind replacement property for investment purposes, so the mere fact that you intend to park and ultimately sell could be problematic.
However, parking your 1031 exchange funds into some sort of investment property for slightly more than 12 months with the intent to hold is possible if you can find like-kind replacement property that you intend to hold for investment but could be sold fairly quickly if needed.
The tenant-in-common (TIC) properties that NewKidd mentioned are not liquid investments and usually have a hold period of three to ten years (spelled out in the private placement memorandum). It is possible for the investor to sell early if needed, but would depend on the conditions of the market and the performance of the property at the time you attempt to sell. You really need to go into these types of investments with the intent to hold for the long-term.
You should also be careful of companies that market a 1031 exchange parking program. The structures that I have seen have too many strings attached such as required buy-backs (puts/calls). The transactions would probably be disqualified under IRS or state audit.
I would be happy to discuss this in more details if you like, just email me.
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