[WSBARP] Quit Claim Deed for gift of equity and consideration of mortgage transfer

[Jeanne Dawes]

Kaitlyn,

I believe you can use “love and affection” as words of consideration, and then add a Subject to:  describing the mortgage.

Be aware, that the transfer most likely will be a breach of the due-on-sale clause.  If the mortgage company does not agree to the transfer, it will most likely be impossible for the son to get information from the mortgage company, and the mortgage company will continue to mail all correspondence, including end-of-year info and escrow info to the original borrowers.  The mortgage company will be alerted when the tax records change and the insurance notice to the mortgage company identifies a new owner.  Whether it will do something about it depends on the lender.  I’ve had lenders ignore it as long as the payments are being made, and then there are those that will not, such as Wells Fargo.


Jeanne

Jeanne J. Dawes
Attorney at Law
Gore & Grewe, P.S.
103 E. Indiana Avenue, Suite A
Spokane, WA 99207-2317
Voice:  509-326-7500
Fax:      509-326-7503
jjdawes at goregrewe.com<mailto:jjdawes at goregrewe.com>

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INFORMATION CONTAINED IN THIS E-MAIL TRANSMISSION IS PRIVILEGED AND CONFIDENTIAL.

From: wsbarp-bounces at lists.wsbarppt.com On Behalf Of Kaitlyn Jackson
Sent: Tuesday, April 28, 2020 8:41 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] Quit Claim Deed for gift of equity and consideration of mortgage transfer

Hi brain trust -

I have a situation where a set of parents seek to quit claim deed a property to their son and his wife in exchange for the son taking over the mortgage on the property. The remaining mortgage is about 1/2 the property value so I'm aware that the son and his wife have to pay excise tax on the amount that is left on the mortgage that they are assuming. However, I can't seem to get the wording on the quit claim deed to "look right" in explaining that equity is gifted but there's consideration exchanged as well.

Does anyone have a similar quit claim deed they've done that they can share?

I really appreciate the help! I'm also aware that I will need to produce a supplemental statement for the REET.

--
Thank you,

Kaitlyn R. Jackson | Attorney| DIMENSION LAW GROUP PLLC
130 Andover Park East, Suite 300 | Tukwila, WA 98188
t: 206.973.3500 | f: 206.577.5090| e: kaitlyn at dimensionlaw.com|<mailto:kaitlyn at dimensionlaw.com|> www.dimensionlaw.com<http://www.dimensionlaw.com/>

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