Well in Ohio where I am it’s called a conveyance fee and if it’s not paid the deed will not transfer. I do not pass that on to anyone on the buy side since I am the one that is buying the house. When my buyer refi’s at the end of their contract they pay the fee in the closing costs for their transfer.
Oh, ok I see. One of the big benefits of doing Sub2 deals when using a trust is that you DON’T pay any land transfer tax or conveyance fees. This is why I do the Sub2 using a trust and not the way Tony described. Not that his way is wrong. If you do the math though, saving land transfer/conveyance fees on all the Sub2’s you do during the course of the year. It’s a huge benefit. When you set up the Sub2 using a trust for the benefit of the original seller, there is NO land transfer tax/conveyance fees due for you. Hope this helps.
Just a word of caution about using Land Trusts.
http://www.reiclub.com/articles/nc-commission-answers
North Carolina is not the only state that has prosecuted creative investors for using a Land Trust, personally I just pay the Transfer Tax, rather than face an Attorney General for a fraudulent transfer with all the fines that go along with it.
John $Cash$ Locke
Hog wash! You’re explaining your situation improperly to the agents. Tell them you are buy the property and that you have “an insurable interest in the property”. A mortgage has nothing to do with having an onwership interest, I was in the insurance business and sold homeowners policies. If they or any company refuses, contact the state insurance commissioner’s office.
John you’re kidding right…
You mean there is something wrong with using a land trust to disguise a transfer and that it just might be illegal to record the trust however acknowledge to the recorders office that the trust being recorded is for the benefit of the constructive owner and that the beneficial interest hasn’t transferred.
Have a great day counting your Cash…
Michael
Michael,
I see you picked up to what was going on also!
Just doing a little fishing. :rolleyes
$Cash$