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Ray
Ray, Lawyer
Category: Real Estate Law
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Experience:  Texas Attorney for 30 years dealing in real estate
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My son and I are using a quitclaim deed to m off title of a

Customer Question

My son and I are using a quitclaim deed to him off title of a duplex in King County. We are using the WAC 458-61A-201 (gift) exception citing he isn't on loan and I have paid 100% of the debt since loan inception and will continue to do so in the future. Is this the correct WAC section to use?
Also in King County when I fill out a quitclaim form under the consideration portion is it necessary to use a dollar amount (ie $1.00 and love and affection) or can we just state "in consideration of love and affection".
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Asad Rahman replied 1 year ago.

That is very kind of you. Yes, that appears to be the correct statute. Since it is purely a gift then just love and affection is fine. My reading of the statute is that even $1.00 could make it a nominal sale subject to some small tax liability.

Customer: replied 1 year ago.
Does King County require the $1.00 plus etc. I have read in certain counties you must mention some kind of money or it isn't a quitclaim. I really don't want to put any dollar amount since it isn't a sale and absolutely no money was exchanged but each county i Washington seems to have its own unique requirements
Expert:  Asad Rahman replied 1 year ago.

You may want to consult with a local attorney because I did some additional affidavits and forms you may need to execute. I cannot seem to find a clear answer. If you like I can opt out of the question and perhaps someone else knows the answer.

Expert:  Asad Rahman replied 1 year ago.

I would say you are ok with no consideration or just love and affection as I read the statute. There is actually examples cited.

Customer: replied 1 year ago.
Ok. Maybe someone else will know. Thank you
Expert:  Ray replied 1 year ago.

Ray here a new expert..

The prior expert was correct that you do not include any consideration other than the love and affection of grantor and other valuable consideration...

You will also have to complete this form when you record it..

http://dor.wa.gov/docs/forms/realestexcstx/realestextxspplmtlstmt_e.pdf

Expert:  Ray replied 1 year ago.

No other monetary consideration need be put in here under Washington law ..

http://www.mpba.com/blog/deeds-that-gift-real-property-do-not-require-a-recital-of-consideration/

Appreciate the chance to help you here.

Expert:  Ray replied 1 year ago.

Deed Of Gift Of Immovable Property

HIS DEED OF GIFT is made at …….. this …….. day of.. ….. between Mr. A of ……. hereinafter referred to as ‘the Donor’ of the One Part and Mr. B of ……. hereinafter referred to as ‘the DONEE’, of the Other Part.

WHEREAS the Donor is seized and possessed of the land and premises situate at ……… and more particularly described in the Schedule hereunder written.

AND WHEREAS the DONEE is related to the Donor as ……..

AND WHEREAS the Donor desires to grant the said land and premises to the DONEE as gift in consideration of natural love and affection as hereinafter mentioned ‘

AND WHEREAS the DONEE has agreed to accept the gift as is evidenced by his executing these presents.

AND WHEREAS the market value of the said property his estimated to be Rs …..

NOW THIS DEED WITNESSETH that the Donor without any monetary consideration and in consideration of natural love and affection, which the Donor bears to the DONEE, doth hereby grant and transfer by way of gift the said land and premises situate at ….. and more particularly described in the Schedule hereunder written together with all and singular the buildings, and structures. thereon and all the things permanently attached thereto or standing thereon and all the liberties, privileges casements and advantages appurtenant thereto And all the estate, right, title, interest use, Inheritance, possession. benefit, claims and demand whatsoever of the Donor To Have And To Hold the same unto and to the use of the DONEE absolutely but subject to the payment of all taxes, rates, assessments, dues and duties now and hereafter chargeable thereon to the Government or Municipality or other Local Authority.

AND he the Donor doth hereby covenants with the DONEE;

(a) That the Donor now has in himself, good right, full power and absolute authority to grant the said piece of land and other the premises hereby granted as gift in the manner aforesaid.

(b) The DONEE may at all times hereafter peaceably and quietly enter upon have occupy. possess and enjoy the said piece of land and premises and receive the rents, Issues, and profits and rents thereof and every part thereof to and for his own use and benefit without any suit, lawful eviction, interruption, claim or demand whatsoever from or by the Donor or his heirs, executors, administrators and assigns or any person or persons lawfully claiming or to claim by, from, under or in trust for the Donor.

(c) That the said land and premises are free and clear and freely and clearly and absolutely and forever released and discharged or otherwise by the Donor and well and sufficiently saved, kept harmless and Indemnified of and from and against all former and other estate, titles, charges and encumbrances whatsoever, had made, executed, occasioned or suffered by the Donor or by any other person or persons lawfully claiming or to claim by. from, under or in trust for the Donor.

(d) AND FURTHER that the Donor and all persons having or lawfully claiming any estate or Interest whatsoever to the said land and premises or any part thereof from under or in trust for the Donor or his heirs, executors. administrators and assigns or any of them shall and will from time to time and at all times hereafter at the request and cost of the DONEE do and execute or cause to be done and executed all such further and other acts, deeds, things, conveyances and assurances in law whatsoever for better and more perfectly assuring the said land and premises and every part thereof unto and to the use of the DONEE in the manner aforesaid as by the DONEE, his heirs, executors, administrators and assigns or counsel in law shall be reasonably required.

IN WITNESS WHEREOF the Donor as well as the DONEE (by way of acceptance of the said gift) have put their respective hands the day and year first hereinabove written.

THE SCHEDULE ABOVE REFERRED TO

Signed and Delivered by the withinnamed Donor …….. in the presence of …….

Signed by withinnamed DONEE …….. In the presence of …….

1……………

2……………

Expert:  Ray replied 1 year ago.

This is a free form I found for you to use.

Customer: replied 1 year ago.
In the Real Estate Excise Tax Supplemental statement (WAC 458-61A-304) in Section 2 under gifts, they state "Grantor (seller) gifts equity valued at $__________ to grantee (buyer)."
But my situation is a "Gift t w/o Consideration" because I, the Grantee, have made and will continue to make 100% of the total payment on the total debt and I haven't paid the Grantor any consideration toward equity.My question is what is the "equity" they are asking for in Section 2? And should I even fill it out since this is a gift w/o consideration?
Expert:  Ray replied 1 year ago.

The gift and consideration is title to the property here.I may not have equity but ti still would have value and consideration here as a gift.You give it to him because you want him to have the benefit here.Not reciting money here is so that there will not be any taxes due here.

Customer: replied 1 year ago.
I'm sorry. I don't understand your answer to my last question.
Expert:  Ray replied 1 year ago.

Here you want to use a gift deed, it is proof here that this is a gift and not a sale.Love and affection is the only consideration needed.The law I referenced above in Washington does not require any monetary consideration from the grantee.In fact you want to do this to avoid the taxes from a sale--transfer taxes in your state.Thats why you really want to do it as a gift deed rather than recite any consideration here.

Grantee takes it subject to any liens, here it is the note and make payments.I hope that clarified, if not let me know.

Expert:  Ray replied 1 year ago.

If you can leave a positive rating when we are done it is always sincerely appreciated.

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