Showing Consideration Amount On The Deed
How do you show the amount of consideration on a deed for a sub-to deal if your conveying the property into an LLC and not a land trust?
If you are agreeing to "buy" the property at the mortgage balance amount, would you put that amount on the deed (for example $149,000) ...or would you show ten ($10.00) dollars if that was the amount of your earnest money?
Most deeds just state 10 dollars and other valuable consideration. I have done a few where the other consideration was mentioned such as the assumption or subject to the mortgage and stated the amount and the lenders name. Contact me if you need more help
Good LUCK and Thank You
Hope this helps some
Ted Jr
Ted thanks for your reply.
There are no laws that mandate your setting forth the details of your purchase, on any deeds, to my knowledge...and generally I think you'll find most savvy REIs just don't do it.
Normally some language like " Ten Dollars and other good and valid consideration" is all that's needed.
Think about this: When you get ready to resell it, do you really want your buyer, then, to know what you paid for it?
John, you wrote:
There are no laws that mandate your setting forth the details of your purchase, on any deeds, to my knowledge...and generally I think you'll find most savvy REIs just don't do it.
Normally some language like " Ten Dollars and other good and valid consideration" is all that's needed.
Think about this: When you get ready to resell it, do you really want your buyer, then, to know what you paid for it?
*************
Yes, that makes sense....but what about the transfer taxes? Am I correct in assuming you would only pay transfer taxes on $10.00 instead of $149,000 if you chose to show it that way?
I sure wish I had asked this question earlier!