Real Estate Investor · Los Angeles, CA · Member since 2009 · 32 posts · 12 votes
I understand the concept of making an offer with a standard purchase agreement, and drawing up an addendum to add someone on to title. And once the property is sold, you deed your title off the contract with a quitclaim deed.
I am just wondering where am I suppose to get paid? Do I ask for a fee on the addendum, the quitclaim deed?
This is a new strategy I am considering when wholesaling properties already listed with a realtor.
Real Estate Investor · Baltimore, MD · Member since 2008 · 619 posts · 75 votes
16y
In MD from what I understand you have to pay transfer taxes on the quitclaim deed (usually just levied at what the assessed value is) is this different other places?
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
16y
Hi, tranfer taxes are usually not due, (could be though) if an owner transfers a property to thier Trust or a closely held LLC, where they are still the pricipal. If it goes to an LLC, you could then tranfer the LLC and the property would not be transfered. Check with your state and see what constitutes a real property transfer. Bill
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
16y
Terry,
In the state of PA, transfer taxes would be due, and on an imputed value that approximates FMV.
Bill,
All of what you wrote there matters little in the state of PA. The PA dept of Revenue wants to collect transfer on all sorts of transfers; there are a number of possible exemptions that can occur - they are pretty much shown on the dept's form for collecting that tax. And what you mentioned is not given as one of the allowed exemptions.
Not only that, but transfers of ownership in LLCs, can also spur the collection of real estate transfer taxes by the PA Dept of Revenue! When the LLC has as its primary assets real estate, and where it conducts no other business but real estate - expect that the value of the real estate held by the LLC to be taxed for real estate transfer tax in PA.
In PA, most of this has already been heard in trial by the superior court, and the rulings are published - so that is now the common law in PA.
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
16y
Thanks for the clarification Steve, for the state of PA. Since it's an open forum for the whole coutry, it may be of value to others. As I mentioned in my last sentenace, check with your state.