Clouding The Title

Im in NY and I realize that in other states the methods, and documents used to cloud title are different.

Here in NY u must record your P&S Agreement. Well, I attempted that today, and all was well and seemed to be going according to planned until they wanted me and the Sellers Social Securitry, and in addition to that, I realized that tax documennts would need to be filled out. I did not go through with the recording, n thats what brings me to you guys, and why I have an appointment with my mentorship support team on Monday.

Can someone share their experience and/ or knowledge.
Are there any tax implications for just recording a P&S Contracts?

No cash has changed hands between the seller and myself except for the $10.00 EMD.
I intend to Shortsale this property, and then flip it to an end buyer.

I may be shooting in the dark here, but on my Lease Options I use a memorandum of option and record that. Maybe you can do something similar. When all else fails get a lawyer. Herbster

memorandum is the tool you need and zero tax until transfer… If you would like to transfer without tax look into a trust. But heck tax is cheap.

BTW in the case of you not buying to release the memorandum you ll need a quick claim deed

Thanks Michealquarles and herbster… my mentor has told me that using a memorandum is a harder document to push through, as far as trying to explain it to an attorney…as an alternative I was told to put my 10.00 EMD as the only monies being transferred, this will eliminate the tax…

I get the seller to sign all my docs upfront, so I have a deed signed by the seller, but i dont kno if its a quit claim or not.

My deal is a short sale, how does the recording of the deed process go when there is a double close. Will I have to record the deed? and if so will it be prior to the closing (meaning I would have to handle it) Or will they draw up all the paper work at the closing and the recordings are done later…

How do you fill out a Preliminary HUD? :help

Dont record the deed in a shortsale…You will confuse all parties… If you think you need to then record it in the name of a trust… Should be the address written out Land Trust and someone as Trustee never trustee first.

If it is a QCD then it will state that on the top of the deed.

As for the tax I think you’re wrong. If you buy a property for 10 plus the balance then your price is that figure… Nice thing about a trust is a property owner can put a property into a trust without tax due and then you can transfer beneficial interest to anyone else.

Typically escrow does all of the document prep however eventually you will prepare your own Deed as escrow has a fiduciary responsibility to both parties and you don’t and there are times when you want to control the actions of the seller without their permission.

HUDS are simple however look complicated… Most closing companies will give you an estimated HUD1 however you should have a form to do your own…

I always use the following as my basis for costs…

Commissions 6%
title free 750.00
escrow fee 375
transfer tax 1.10 per 1000
deed prep 75
recording fee 15
wire transfer 35
second loan payoff 1500
back taxes 1500
short sale admin fee 1%

Those are general cost and I have found most deals fall within the figures.

Good luck