Are Transfer Taxes Due On A Grant Deed Change
I own a property with two other people. We are listed as tenants in common on the grant deed. One person would like his name removed from the grant deed, though all three of us would remain on the mortgage.
The current grant deed states that Seller grants to A, B an C as tenants in common the propertly located at: ___________ .
We would like to record a new grant deed which states that A grants his interest in the property to B and C as tenants in common the property located at: _________ .
If a new grant deed is recorded are transfer taxes due? In my area it's quite expensive-- the city tax alone is $15 per $1,000 of property value.
I've heard conflicting information from the county in which the new deed will be recorded as well as from "A" who consulted with an attorney.
Thank you very much for any help on this.
Re: Are Transfer Taxes Due On A Grant Deed Change
Laws are different in each state. Are you stating that the county gave you a different answer than A's lawyer?
Re: Are Transfer Taxes Due On A Grant Deed Change
Thank you for the reply, Mr. Knowitall.
Quote:
Quoting
Mr. Knowitall
Laws are different in each state. Are you stating that the county gave you a different answer than A's lawyer?
Yes and no. The attorney said that because A never actually invested money into the property- A's share of the down payment, annual expenses, etc. were covered by B and C- that relinquishing his share should not trigger the transfer tax.
There were also oral agreements between the parties regarding repair and maintenance work on the property. A, for the most part, failed to live up to his his end of the bargain.
I've spoken to three people with Alameda County by phone. Due to work I have been unable to go in person yet.
One said that any transfer will invoke the tax.
Another said that "It depends" but could not explicitly state what it depends on. When I explained the circumstances she could not say one way or another.
A third said if it can be proven that A was never financially invested then "maybe" we would not be taxed on the transfer. She also implied that if we could show how much A "owed" due to not participating in the repair and maintenance, that could reduce the tax.
Finally, from another source, we were told that A could quit claim and there would not be any tax.
Any thoughts or comments would be appreciated. Yes, we could consult with another attorney, but we were hoping to get as much information as possible before putting more time and money into resolving this.
Thanks for your help.