[WSBARP] assignment

[Kary Krismer]

I would be surprised if the escrow would go along with that since you 
would be violating the terms of the P&S agreement.

I have no idea what the tax advisor is thinking, but is it possible that 
you could just transfer it after the deed is recorded and get the same 
benefits?   I'm fairly certain you could still avoid REET.

As to what you might be missing:  1.  No homestead protection; 2.  No 
sale of property excluding 250k/500k of gain on income taxes; and 3.  No 
deduction of interest or real estate taxes. Again I have no idea what 
the tax advisor is thinking, but the first two of those are two things I 
wouldn't want to give up--the third might not matter if it's a cash 
purchase.

Kary L. Krismer
John L. Scott/KMS Renton
206 723-2148

On 11/21/2017 4:49 PM, Scott Thomas wrote:
>
> Clients entered into P&S agreement, entailing construction of new 
> home.  NWMLS form used, which precludes assignment unless seller 
> agrees.  Construction of home turned out to be a difficult process, 
> with numerous issues turning up.  Long story short, I will make 
> certain neither party sees the other at the escrow office when the 
> sale closes.  Now for my question: clients, who entered the P&S 
> agreement as a marital community, have been advised by their tax 
> lawyer that it would be preferable to form an LLC to take title to the 
> property.  I am thinking the easiest way to accomplish this is to 
> simply have clients assign their interest in the property at the time 
> of closing, after seller has executed closing documents and the P&S 
> agreement is satisfied, but before the deed is recorded.  Transfer 
> taxes should not be an issue, and all obligations under the P&S 
> agreement would be completed.  Am I missing anything?
>
>
>
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