Bad idea, not to mention illegal - Posted by Tony-VA
Posted by Tony-VA on February 13, 2001 at 16:01:14:
As eluded to, skipping title is illegal. Possessing a title issued to another is illegal (obviously a dealer would be exempt from this). Being a dealer is not that big of a deal. Yes, you are going to have to jump through some ancient hoops but eventually you may make it. As a dealer, you can reassign titles. In VA, dealers don’t pay the sales tax on homes we aquire. The sales tax savings alone pays for my licensing costs.
Play the game by the rules and you will remain in a position of strength. Cut corners and eventually you will get burned. Every buyer that finds out you skipped title will have that one trump card they figure they can play against you when you decide to play hard ball with them not paying. It is the “Fruit of the posinous tree” defense. Basically, “yeah I did wrong, but he did wrong first!”
If still feel strongly about this title issue, look into Ernest Tew’s material where you do Net Lease type deals. Ernest’s deals offer great tax advantages as well. Contract for deed (title) type deals are also done but should be done properly. Courts and attorneys in my area are vary weary about them because so many are done sloppy.
When looking to create opportunity by solving a problem, be certain to weigh the benefits the solution will provide you. Skipping title to save a few bucks here and now can damage your credibility and your negotiating position, not to mention subject you to fines. Risking a lot for little gain is poor investing in my book.