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<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>As some of my favorite ex parte
commissioners liked to say: Disclosure cures many problems. You have two things
going on here, first a transaction which will be clean on the real estate
records and enable eventual clean title transfer to an innocent third party,
which requires no mention of the LLC, and secondly setting up a defensive
shield against any internal causes of action which would be based on the prior
transactions among the four co-owners. Lay out the history, as you propose, and
be sure all four parties, not just the departing couple are signatories to the
deed. For that reason, I would suggest a deed from all four to the remaining
two, rather than from the departing two to the remaining two. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>Rebecca K. Wiess<o:p></o:p></span></font></p>
<p class=MsoNormal><st1:Street w:st="on"><st1:address w:st="on"><font size=2
color=navy face=Arial><span style='font-size:10.0pt;font-family:Arial;
color:navy'>421 24th Avenue East</span></font></st1:address></st1:Street><font
size=2 color=navy face=Arial><span style='font-size:10.0pt;font-family:Arial;
color:navy'><o:p></o:p></span></font></p>
<p class=MsoNormal><st1:place w:st="on"><st1:City w:st="on"><font size=2
color=navy face=Arial><span style='font-size:10.0pt;font-family:Arial;
color:navy'>Seattle</span></font></st1:City><font size=2 color=navy
face=Arial><span style='font-size:10.0pt;font-family:Arial;color:navy'>, <st1:State
w:st="on">WA</st1:State> <st1:PostalCode w:st="on">98112</st1:PostalCode></span></font></st1:place><font
size=2 color=navy face=Arial><span style='font-size:10.0pt;font-family:Arial;
color:navy'><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>Phone 206 329-6638<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>rwiess@foxinternet.net <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
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<p class=MsoNormal><b><font size=2 face=Tahoma><span style='font-size:10.0pt;
font-family:Tahoma;font-weight:bold'>From:</span></font></b><font size=2
face=Tahoma><span style='font-size:10.0pt;font-family:Tahoma'>
wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com] <b><span
style='font-weight:bold'>On Behalf Of </span></b>Anthony Gibbs<br>
<b><span style='font-weight:bold'>Sent:</span></b> Thursday, May 02, 2019 12:56
PM<br>
<b><span style='font-weight:bold'>To:</span></b> <st1:PersonName w:st="on">WSBA
Real Property Listserv</st1:PersonName><br>
<b><span style='font-weight:bold'>Subject:</span></b> [WSBARP] House transfer
question</span></font><o:p></o:p></p>
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<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
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<p class=MsoNormal><font size=3 face=Georgia><span style='font-size:12.0pt;
font-family:Georgia'>I'm hoping for some feedback on the following situation:<o:p></o:p></span></font></p>
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<p class=MsoNormal><font size=3 face=Georgia><span style='font-size:12.0pt;
font-family:Georgia'><o:p> </o:p></span></font></p>
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<p class=MsoNormal><font size=3 face=Georgia><span style='font-size:12.0pt;
font-family:Georgia'>4 individuals (2 sets of husband & wife) bought a
vacation house together, each contributed significant money for upgrades and
furniture, etc. All four are individually named on the mortgage and the deed.<o:p></o:p></span></font></p>
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<p class=MsoNormal><font size=3 face=Georgia><span style='font-size:12.0pt;
font-family:Georgia'><o:p> </o:p></span></font></p>
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<p class=MsoNormal><font size=3 face=Georgia><span style='font-size:12.0pt;
font-family:Georgia'>The house was meant to become the sole asset of an LLC
formed for the purpose of holding the property. The LLC was created, but the
house was never transferred to the LLC. Funds for the upgrades came from a bank
account held by the LLC for that purpose and funded by the four indivudals.<o:p></o:p></span></font></p>
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<p class=MsoNormal><font size=3 face=Georgia><span style='font-size:12.0pt;
font-family:Georgia'><o:p> </o:p></span></font></p>
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<p class=MsoNormal><font size=3 face=Georgia><span style='font-size:12.0pt;
font-family:Georgia'>The 2 sets of H&W do not wish to continue their joint
ownership and HW1 have offered to buy HW2 out of their 50% share of the house.<o:p></o:p></span></font></p>
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<p class=MsoNormal><font size=3 face=Georgia><span style='font-size:12.0pt;
font-family:Georgia'><o:p> </o:p></span></font></p>
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<p class=MsoNormal><font size=3 face=Georgia><span style='font-size:12.0pt;
font-family:Georgia'>My question(s): since the house was never formally
transferred to the LLC, even though their intent was for the transfer, and the
house/mortgage remain in their four individual names as tenants in common, is
the LLC relevant to the house transaction? In other words, when drafting the
transfer agreement of the house, must the LLC be a named party to the
transaction? Could the LLC issue be handled in the recitals beginning the
transfer agreement, something like: "Funds from the LLC were contributed
by the four individuals named and the parties agree that any itemized money
transfers between the individuals are in reconciliation of contributions to and
payments from the LLC."<o:p></o:p></span></font></p>
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<p class=MsoNormal><font size=3 face=Georgia><span style='font-size:12.0pt;
font-family:Georgia'><o:p> </o:p></span></font></p>
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<p class=MsoNormal><font size=3 face=Georgia><span style='font-size:12.0pt;
font-family:Georgia'>In a nutshell, I'm trying to anticipate how a schemer
might try to come back and unwind the transaction on the grounds that the LLC
(which was not properly governed and could be pierced) was not properly
addressed.<o:p></o:p></span></font></p>
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<p class=MsoNormal><font size=3 face=Georgia><span style='font-size:12.0pt;
font-family:Georgia'><o:p> </o:p></span></font></p>
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<p class=MsoNormal><font size=3 face=Georgia><span style='font-size:12.0pt;
font-family:Georgia'>Sorry about the long-windedness but I'd appreciate any
thoughts on the topic or, perhaps, even a couple minutes of phone time.<o:p></o:p></span></font></p>
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<p class=MsoNormal><font size=3 face=Georgia><span style='font-size:12.0pt;
font-family:Georgia'><o:p> </o:p></span></font></p>
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<p class=MsoNormal><font size=3 face=Georgia><span style='font-size:12.0pt;
font-family:Georgia'>Cheers,<o:p></o:p></span></font></p>
</div>
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<p class=MsoNormal><font size=3 face=Georgia><span style='font-size:12.0pt;
font-family:Georgia'>Anthony<br clear=all>
<o:p></o:p></span></font></p>
</div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><br>
-- <o:p></o:p></span></font></p>
<div data-smartmail="gmail_signature">
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<p class=MsoNormal><font size=3 face=Georgia><span style='font-size:12.0pt;
font-family:Georgia'>Anthony F. Gibbs | Attorney</span></font><o:p></o:p></p>
</div>
<div>
<p class=MsoNormal><font size=3 face=Georgia><span style='font-size:12.0pt;
font-family:Georgia'>The Moceri Law Group PLLC</span></font><o:p></o:p></p>
</div>
<div>
<p class=MsoNormal><font size=3 face=Georgia><span style='font-size:12.0pt;
font-family:Georgia'>(888) 510-1961</span></font><o:p></o:p></p>
</div>
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<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
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<p class=MsoNormal><font size=3 face=Georgia><span style='font-size:12.0pt;
font-family:Georgia'><a href="mailto:anthony@mocerilaw.com" target="_blank">anthony@mocerilaw.com</a><o:p></o:p></span></font></p>
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<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><a href="http://www.mocerilaw.com/" target="_blank"><font face=Georgia><span
style='font-family:Georgia'>www.mocerilaw.com</span></font></a><o:p></o:p></span></font></p>
</div>
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<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
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<div>
<p class=MsoNormal><font size=3 face=Georgia><span style='font-size:12.0pt;
font-family:Georgia'>1310 North I Street, Suite B</span></font><o:p></o:p></p>
</div>
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<div>
<p class=MsoNormal><st1:place w:st="on"><st1:City w:st="on"><font size=2
face=Georgia><span style='font-size:10.0pt;font-family:Georgia'>Tacoma</span></font></st1:City><font
size=2 face=Georgia><span style='font-size:10.0pt;font-family:Georgia'>, <st1:State
w:st="on">WA</st1:State> <st1:PostalCode w:st="on">98403-2139</st1:PostalCode></span></font></st1:place><o:p></o:p></p>
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<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
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<p class=MsoNormal><st1:Street w:st="on"><st1:address w:st="on"><font size=3
face=Georgia><span style='font-size:12.0pt;font-family:Georgia'>15600 Redmond
Way, Suite 101</span></font></st1:address></st1:Street><o:p></o:p></p>
</div>
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<p class=MsoNormal><st1:place w:st="on"><st1:City w:st="on"><font size=2
face=Georgia><span style='font-size:9.5pt;font-family:Georgia'>Redmond</span></font></st1:City><font
size=2 face=Georgia><span style='font-size:9.5pt;font-family:Georgia'>, <st1:State
w:st="on">WA</st1:State> <st1:PostalCode w:st="on">98052</st1:PostalCode></span></font></st1:place><o:p></o:p></p>
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<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
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<p class=MsoNormal><font size=3 face=Georgia><span style='font-size:12.0pt;
font-family:Georgia'>Disclaimer: If you received this email in error, please
throw it in the trash and let me know. Thanks.</span></font><o:p></o:p></p>
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