Failure to Transfer Title within 30 days and the penalties
I live in Florida and was wondering why kind of penalties I'm facing. I date on my purchase agreement (when I bought the home from the sellers) is dated 4-22-10. I didn't transfer title to my name to avoid paying the transfer fees and a year of registration.
I'm going tomorrow to transfer title to the new buyer and I'm wondering since I'm past past the 30 day window what type of penalty I should expect to pay. Any ideas? I was thinking about changing the 'date of possession' on the purchase agreement but I'm not sure and don't want to make a small problem bigger by fudging numbers.
Does anybody know?
#3 Guru, Book, & Course Reviews Contributor
- Investor, Entrepreneur, Educator
- Springfield, MO
- 12,856
- Votes |
- 21,918
- Posts
#3 Guru, Book, & Course Reviews Contributor
- Investor, Entrepreneur, Educator
- Springfield, MO
When you screw up, take responsibility for it! A lie to cover up a lie is a conspiracy.
I'm sure that you won't go to jail for this slight oversight. When you get to closing, the closing agent might tell you what you owe since they will need to clear the issue with the taxing authority.
CLosing agenst see back tax issues all the time and they probably won't give it a second thought, just that you failed to pay it for one reason or another.
Backdating documents will likely be caught or doing other such things, and closing agents don't see that every day. If they do see something like that or it comes out that their documents do not comply through an audit process, they will certainly have some thoughts. It could be the last time you ever close with that settlement agent.
The settlement agent tells the bank of what happened and now the bank can't or won't trust you. The Realtors sitting there take the word back to their office, one thing leads to another and pretty soon, you're out of business!
Good luck, Bill
Well said, Bill. I did call the Tax Collector's office and she said that it's only a $10 fine for not transferring title on time. That sure beat's the $250 to have it transferred to my name temporarily. FWIW I did put the date of possession as April when I should have put May since the couple still occupied it until then. Each deal teaches us something new!
#3 Guru, Book, & Course Reviews Contributor
- Investor, Entrepreneur, Educator
- Springfield, MO
- 12,856
- Votes |
- 21,918
- Posts
#3 Guru, Book, & Course Reviews Contributor
- Investor, Entrepreneur, Educator
- Springfield, MO
Good News Terry, that didn't hurt ya at all! LOL As to April or May, possession may not have anything to do with taking your interest in the property, but I'm not trying to split hairs here. I hope my comments were taken as meant to be gievn, in a positive light that when we screw up, and everyone has, that it's best to face it off at that point and move on, just as you have by calling them! Good luck, Bill
Originally posted by Financexaminer:
Good News Terry, that didn't hurt ya at all! LOL As to April or May, possession may not have anything to do with taking your interest in the property, but I'm not trying to split hairs here. I hope my comments were taken as meant to be gievn, in a positive light that when we screw up, and everyone has, that it's best to face it off at that point and move on, just as you have by calling them! Good luck, Bill
Of course not! I am extremely appreciative of any knowledge, experiences, or advice shared! Please don't ever hold back on the account of my feelings :D
Originally posted by Terry Drake:
I didn't transfer title to my name to avoid paying the transfer fees and a year of registration.
Hi Terry,
I'm new to this and just trying to figure out the title transfer process before hopefully setting up my first deal here very shortly.
I am just trying to figure out how you are going to save your self title transfer fees and a year of registration.
Won't you still need to go and pay those fees when you transfer to your buyer?
Did you not have to have your name on the title as a buyer when you first bought the mobile home?
In Michigan we are required to have both the buyer and the sellers name on the title at the time of sale. I'm just a little confused, and hoping you can clarify for me.
Thanks very much!
P.S. thank you for all your posts I have been following them over the last few weeks as I prepare for my first lonnie deal.
-KIrk
Kirk, when I buy the home, the seller signs the title over. I don't sign it. Then when I do sell it I charge the new buyer registration, sales tax, transfer fees and have them sign the title and a power of attorney so I can transfer title to their name on their behalf.
Originally posted by Terry Drake:
Kirk, when I buy the home, the seller signs the title over. I don't sign it. Then when I do sell it I charge the new buyer registration, sales tax, transfer fees and have them sign the title and a power of attorney so I can transfer title to their name on their behalf.
Hmm I think I need to do a bit more research. In Michigan our title specifically asks for sellers name & date, as well as buyers name & date. Do you just ask the seller to leave your name blank and fill in your buyers name when the time comes?
Originally posted by Kirk Berryman:Originally posted by Terry Drake:
Kirk, when I buy the home, the seller signs the title over. I don't sign it. Then when I do sell it I charge the new buyer registration, sales tax, transfer fees and have them sign the title and a power of attorney so I can transfer title to their name on their behalf.
Hmm I think I need to do a bit more research. In Michigan our title specifically asks for sellers name & date, as well as buyers name & date. Do you just ask the seller to leave your name blank and fill in your buyers name when the time comes?
The seller usually signs it first, then when they slide it over to me I just thank them and put it in my file folder. Nobody has ever mentioned it. If they say something you can tell them you're not sure if you're going to title it to yourself or your partner yet.
Kirk-If you are a licensed dealer in Michigan you will never put titles into your name. Yes you have the sellers sign and leave the rest blank. Then when you find a buyer you assign the title over to them using the form available of the Secretary of State's web site. If you are not a dealer then you are supposed to put the title into your name paying 6% sales tax on top of your purchase price and a 90 dollar title transfer fee to the state. I am in Michigan and handle titles every day. If your plan is to buy and sell mobile homes for a profit the state may come down on you if you are not licensed to sell mobile homes. As a dealer you do not have to pay tax when you buy homes and get to pass on the tax liability to your buyers.
Originally posted by Terry Drake:
The seller usually signs it first, then when they slide it over to me I just thank them and put it in my file folder. Nobody has ever mentioned it. If they say something you can tell them you're not sure if you're going to title it to yourself or your partner yet.
I see, I sort of thought that was the way it would be... good thinking about the partner ;)
Originally posted by Marc Faulkner:
Kirk-If you are a licensed dealer in Michigan you will never put titles into your name. Yes you have the sellers sign and leave the rest blank. Then when you find a buyer you assign the title over to them using the form available of the Secretary of State's web site. If you are not a dealer then you are supposed to put the title into your name paying 6% sales tax on top of your purchase price and a 90 dollar title transfer fee to the state. I am in Michigan and handle titles every day. If your plan is to buy and sell mobile homes for a profit the state may come down on you if you are not licensed to sell mobile homes. As a dealer you do not have to pay tax when you buy homes and get to pass on the tax liability to your buyers.
Good to know! Thanks Marc!