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<p>I would be surprised if the escrow would go along with that since
you would be violating the terms of the P&S agreement.</p>
<p>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. <br>
</p>
<p>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.<br>
</p>
<pre class="moz-signature" cols="72">Kary L. Krismer
John L. Scott/KMS Renton
206 723-2148</pre>
<div class="moz-cite-prefix">On 11/21/2017 4:49 PM, Scott Thomas
wrote:<br>
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<p class="MsoNormal">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?<o:p></o:p></p>
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