[WSBARP] Property Conveyance 'hypothetical'

Fri Mar 10 12:05:46 PST 2017

Nice!  Thank you for the idea!

From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Marc Holmes
Sent: Thursday, March 9, 2017 1:55 PM
To: 'WSBA Real Property Listserv' <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] Property Conveyance 'hypothetical'

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
HolmesLawGroup.com<http://holmeslawgroup.com/>
marc at holmeslawgroup.com<mailto: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> [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 information remains the same.

From: wsbarp-bounces at lists.wsbarppt.com<mailto: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<mailto: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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