[WSBARP] Multi-party Quitclaim?

[David Moe]

I haven’t had trouble doing this in King County where the same WAC 458-61A Claim (Single) of Excise Tax Exemption applies to each grantor—probably WAC 458-61A-211(2).  On the REETA and on the deed you  show the percentage ownership of each grantor, and the percentages need to track to the grantee LLC.

E.g., “Grantors A, B, C, and D, each as sole owner of an undivided 25% interest in the described real property, quit claim and convey all their respective ownership interests to Grantee E, a Washington LLC, with the result that the member interests in said Grantee LLC thereupon are held 25% each by the aforementioned grantors.

Separate (or successive) deeds are typically advisable or required where more than one or material alteration of ownership rights is happening, and possible different WAC Excise Tax Exemptions Sections are applicable and must be cited.  For example, say A, B, C, and D hold not as TIC but as JTWROS, (and even though each actually may own an undivided an undivided 25% of the fee, that fact is not recited in the last deed of record).  It might be wise to use successive sets of deeds and REETAs, one set  to sever the JTWROS and establish the TIC with stated percentage ownerships, and a successive set to capitalize the LLC.
Have a great 4th weekend!
dlm

David L. Moe & Associates, P.S.
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From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of David Faber
Sent: Thursday, July 2, 2015 3:32 PM
To: wsbarp
Subject: [WSBARP] Multi-party Quitclaim?

Good afternoon WSBARP,

I'm working with a group to set up an LLC. They each own equal percentages of a property as Tenants in Common and they want to transfer their ownership of the property to their new LLC. I'm prepared to draw up individual Quitclaim Deeds but I'm wondering if such a thing is necessary. Could I just use a single QC with each Grantor listed? Would you bother including the ownership share of each Grantor or, because in total the entire ownership is being transferred to a single Grantee, such a thing would be superfluous?

Any thoughts appreciated.

Best,
David J. Faber
Faber Feinson PLLC
210 Polk Street, Suite 1
Port Townsend, WA 98368
(360) 379-4110

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