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

Wed Apr 29 10:41:03 PDT 2020

Also the insurance carrier can deny coverage for any claim (larger the more
likely) as the insured no longer has an insurable interest in the
transferred property.

The grantee son should get their own liability/fire coverage.

*Robert R Rowley*
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*From:* wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com>
*On Behalf Of *Jeanne Dawes
*Sent:* Wednesday, April 29, 2020 10:19 AM
*To:* WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
*Subject:* Re: [WSBARP] Quit Claim Deed for gift of equity and
consideration of mortgage transfer

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

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*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|
<kaitlyn at dimensionlaw.com|>* www.dimensionlaw.com

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