Thursday, January 21, 2010
Check the names on the deed for your home today!
I got back from a listing appointment in Washington DC a short while ago and have a scenario:
To make a short story short...in mls and in tax records I looked up the owner(s) of X Street WDC 20037 and Jon Smith comes up as owner. I met with Mr. Smith's daughter who told me that she purchased the condo unit with her dad...at least with her name as well.
I reviewed a folder she had with the contract for purchasing the condo and the contract has both Mr. Smith and his daughter listed as buyers. Something seems to have gone wrong or astray.
I didn't see the name of the company who performed settlement and asked her to find out from her dad.
She didn't have a copy of the deed on her for me to see,so she'll ask her father about it.
The issues are at least the following: the goal was to set up the condo as a primary residence with daughter on title since daughter was living there while dad at home in Massachusetts. The plan was to set up the home as a primary residence where his daughter has in fact lived since the purchase and so he wanted her on the title for better interest rate on the mortgage. There are also tax implications (not related to and before the $8000 tax credit existed)..he might have not received first time DC home buyer tax benefits if home recorded as an investment property with an absentee owner (as opposed to a primary residence).
As is on the tax records if sold today,I believe the seller wouldn't be eligible for any capital gains benefits.
Currently as is I don't believe the daughter can sign any legal papers to list the home or to be any part of a sales contract without her father giving her power of attorney,since only he is considered "the owner".
Do yourselves a favor and check the title work for your home and make sure it reads currently,how it is intended andis it consistent with the sales contract you put on the home. If there are any problems or questions,contact the settlement attorney for your home.
So I have inquiries out to a couple of settlement attorneys who I have worked with to get their input on the matter and will tell the sellers my findings.
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