Posted by Dick Chelten on July 07, 2003 at 18:39:14:
I’ve done a couple subject2’s and both were with an attorney and we used the Charlie and Rany France Get the deed paperwork-mainly. My attorney wanted a different warranty deed, but in general, we used everything they suggested.
On to your question…were I to buy a house subject2 and not put it in the trust, then the seller would give me a warranty deed stating the sales price of the home, not the financing terms, correct?
Remember, land trusts are for privacy. Some people also advocate land trusts as they avoid transfer tax in that property held inside a trust is considered “personal” not “real” property. consequently, property tranfer to you never gets recorded.
Not sure if I confused you, but in summary, just get the deed, pay the transfer tax and keep paying the existing mortgage. I DO like the land trust if you choose to do subject2, however.
I have a very good opportunity to purchase a property “subject to” the exisiting mortgage and the current owner is more than willing to deed the property to me.
Question… does the deed have to have a reference to the fact that the property is being acquired “subject to”?
The transaction is taking place in Pennsylvania where Fee Simple Deeds are the common vehicle for transferring ownership.
You need over a dozen different steps to do a proper Sub To deal. Either get a course, or get with a partner who has done them. It’s not hard, just a lot to know.
JS: While I have not taken a course I have a lot of experince with L/P (both buy and sell) and short sales. I am familiar with many of the steps I need to protect myself (affidavits, disclousres, etc) and I have researched the “subject to” via manuals and various written materials.
Many of the other courses I have taken tend to focus on Warranty Deeds and I have learned that the formal processes taught in many courses don’t apply 100% in all states. For instances the value of using land trusts in Pennsylvania is very elusive.
I guess I was looking for some help with this one issue especially as it pertains to fee simple deeds in Pennsylvania.
I do intend to get more education with Subject to in the near future but I have a major opportunity with what appears to be minimum downside and I think I am doing everything right but I am wondering about the specific question having to do with a fee simple deed and if and why the “subject to” needs to be refferenced in the deed.