[WSBARP] Managing ICE risk

[Erik Marks]

Listmates, a question of the times came up yesterday.  Client wants to sell her multifamily property to an undocumented immigrant, and take back a Note and DOT.  Her question to me was how to mitigate risk if the buyer is apprehended by ICE and incarcerated/deported/disappeared such that he can no longer manage the property and pay the mortgage.  In this instance, the client and the buyer would both like the property to transfer to the buyer’s daughter under those circumstances.
So…how about the buyer signs a Quitclaim Deed to his daughter concurrently with signing the DOT, along with an excise tax affidavit and a letter to my client that documents she is holding the QC deed, that she is authorized and directed to deliver it to the daughter under certain circumstances, and must return it to the buyer upon demand.  Then my client holds the unrecorded QC Deed in a safe deposit box and pulls it out and delivers it to the daughter for recording if the buyer were to encounter circumstances that precluded him from continuing to manage the property.
(Of course the daughter could initially manage the property and pay the mortgage as agent for her father.  So the deed is to cover the circumstance that he cannot be located or communicated with for an extended period of time.)
Thoughts?


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Erik G Marks

Attorney at Law
PO Box 2123

Vashon, WA 98070


(206) 612-8653
erik at egmrealestate.com<mailto:erik at egmrealestate.com>

Physical Office (no mail or package delivery):
17530 Vashon Hwy SW
Vashon, WA


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