[WSBARP] Property Conveyance 'hypothetical'

Thu Mar 9 13:55:24 PST 2017

I like the other responses and here’s one more idea based on the premise
that many people in A’s position get greedy and look for ways to get the
lion share of the property’s value.  Thus, the heirs in this case are likely
to assume A’s got ulterior motives and to distrust any proposals he puts
forth.

To mitigate that, have A tell the heirs that he wants to sell his ½ interest
and will gladly sell it to any or all of them for X dollars.  He’s also
happy to buy their combined ½ interest for the same X dollars.  If somebody
steps up and cashes him out, done and done.  If none want to buy it, then
you write up a simple purchase and sale agreement with 100% seller financing
and see if they will all sign it.  I’d offer enticing terms like above
market interest rate, short balloon payoff, perhaps one year or maybe even 6
months, buyer covers all the closing costs including excise, title
insurance, escrow, etc.   The proposed deed of trust (or RE contract if you
prefer) should cover the entire property including the half he already owns.

If they’ll take that deal, he’ll own the entire property and can keep it,
sell to the neighbor, or list it and see what the market will bear.  Of
course, one or more of the heirs might say they want to buy the property if
seller financing is available.  To that I’d say you bet cowboy, all we need
is your siblings to sell their interests as well or to subordinate so that
the deed of trust covers the entire property.  A has already demonstrated
his willingness to subordinate so they’ll have a harder time saying no.

If that deal closes, A gets a nice little annuity and payoff down the road.
Plus, if they ever stop paying, he gets to foreclose and get their half of
the property for the cost of a foreclosure or forfeiture proceeding.

If one or more of the heirs won’t agree to the deal, A can always offer to
cash out some or all of the heirs in a cash or bank financed sale.  The
point of all this is to get them to negotiate from a rational and not
paranoid position.

.      

Marc Holmes

Holmes Law Group PLLC

808 5th Ave N

Seattle WA 98109

 <http://holmeslawgroup.com/> HolmesLawGroup.com

 <mailto:marc at holmeslawgroup.com> marc at holmeslawgroup.com

Ofc: 206-357-4224

Cell: 206-849-0853

From: wsbarp-bounces at lists.wsbarppt.com
[mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Eric Nelsen
Sent: Thursday, March 9, 2017 12:10 PM
To: WSBA Real Property Listserv
Subject: Re: [WSBARP] Property Conveyance 'hypothetical'

Some other thoughts, possibly unhelpful:

1. If buyer will go for it, sell B's interest under warranty and then just
issue a quitclaim with after-acquired title as to A's interest. If buyer
pays taxes for 7 years with color of title, adverse possession is
accomplished.

2. Start a probate of A, appoint B as administrator, sell to the buyer, deal
with the rest of probate matters after taking a hefty PR fee for having to
deal with it. Maybe the 5 heirs get a little, but so what--they can't get
more blood from a low-price turnip.

3A. Long route, for B to acquire title to the whole: B pays property
expenses, sues all 5 heirs for reimbursement under TIC common law rights, B
gets default judgments against 'em all, then forecloses the judgments and
buys the property at sale. Then sell the whole property to the buyer.

3B. Alternatively--sell the property to buyer under #1 and explain #3A to
the buyer--then buyer can do the same thing to take title from A's heir
earlier than 7 years.

Sincerely,

Eric

Eric C. Nelsen

SAYRE LAW OFFICES, PLLC

1417 31st Ave South

Seattle WA  98144-3909

phone 206-625-0092

fax 206-625-9040

Please Note that We Have Moved. We have moved our Seattle office to Mount
Baker Ridge (a small commercial community just above the I-90 tunnel). Our
new address is 1417 31st Avenue South, Seattle WA 98144. All other contact
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From: wsbarp-bounces at lists.wsbarppt.com
[mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Richard Holland
Sent: Thursday, March 09, 2017 11:42 AM
To: wsbarp at lists.wsbarppt.com
Subject: [WSBARP] Property Conveyance 'hypothetical'

I cannot think of a different solution but am curious if others have any
ideas:

A & B own property as TIC – not JT.  Only A lived in property.

A dies without a will.  B is ‘stuck’ with property (it’s a nasty unkempt
shack) and wants to sell/dump to neighbor who wants to demolish.  A’s heirs
are spread out all over and expressed verbally no interest in property to B
after clearing the house of all of A’s personal possessions.

There are 5 heirs spread out all over who are unaware they technically own
any part of shack and but are quite likely to suddenly smell $ despite a
very low value.

I can think of no approach other than 5 separate QCDs from heir to B or else
they need to contribute to taxes and the healthy impending list of code
violations.

Am I missing something?

Sincerely,

Richard L. Holland

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