All Forum Posts by: Katy Nguyen

Hi everyone.  Which case would be better for you if you were the buyer?  To record this property sold at $50k or at $110k?

Case 1:  The seller wants $50k in his pocket after COE.  He owes $60k for a lien on the property.  I draft the purchase agreement at $50k, and in that contract, I state that I, the buyer, will pay off the $60k lien for the seller at closing.  When the title company goes to record the warranty deed, it states that the "true consideration for this conveyance is $50k".  But on the final settlement statement, it shows that the amount I sent to the title company was $110k (let's disregard the title/escrow fees, etc., for the sake of argument).

Case 2: I draft the purchase agreement at $110k, and in that contract, I state that the seller will pay off his $60k lien at closing. When the title company goes to record the warranty deed, it states that the "true consideration for this conveyance is $110k".  And on the final settlement statement, it shows that the amount I sent to the title company was $110k (let's disregard the title/escrow fees, etc., for the sake of argument).

The property is a vacant lot.  In the eyes of the IRS, did I purchase this property at $50k or $110k?  I figure if I go with case 1, the County or City might charge me less for property taxes.  Is there any major disadvantage for me if I choose to go with Case 1?  From the perspective of the buyer, which case is better and why?  Thanks.

Hi everyone.  I'm looking at a vacant parcel, and it's zoned residential.  There are streets nearby; however, in one direction, there are other vacant lots in between this parcel and the street.  In another direction, there is one lot in between this parcel and the street.  Who can I contact to find out if there will be road access from this parcel?  Would an easement be required?  Would the title company have this info, or do I need to contact the County's Planning Department?  What happens in the case when there is no road access and the lot is completely landlocked?  Thanks.

I checked with Geico. It's not the case. If I personally owned the land, then, you're correct. But since it's owned by my LLC, the insurance company won't cover it from my homeowner's insurance. I would have to buy commercial liability insurance separately for it.

Hi everyone.  I just closed escrow on my first small deal.  I got my Warranty Deed from the title company a day after the deed got recorded.  How did it get back to me so fast?  

Is this how it works:  So the seller signed it, it was notarized, then, the title company brought that deed to the County Recorder to record.  So the County Recorder just made a scan of that original deed into their computer system and then, immediately gave the original deed right back to the person from the title company?  Then, the title company sent that original to me via Fed Ex?

I just called Farmers. They said they don't insure vacant land for an LLC. Are you insured with Farmers under your homeowners' policy or through your business?

Hi everyone. Does anyone know which insurance companies I can purchase liability insurance for my two vacant lots? They are located in two different states and owned under my LLC. Thanks.

I mentioned to the person with the POA I will pay for the Fed Ex, but he won't do it. He's very old, and won't send out the original out of fear it might get lost. I like your suggestion about a certified copy of the POA. Will look into that. Thanks.

Hi everyone. I'm in contract to purchase this property. The seller is in a coma and cannot sign. The seller is being represented by his relative who has Power of Attorney. The County Recorder's Office (out of state) won't record the Deed unless they see and also record the original Power of Attorney paper along with the Deed. The problem is the person with the POA won't send out the original POA paper because if it is lost in the mail or lost by the County after recording, it will be a big problem for the seller who is in a coma. The Recorder's Office won't accept a photocopy of the POA paper when recording the Deed. Anyone knows of a solution to this problem? Thanks.

In a FSBO scenario:

The seller places an ad for the property online.  Photos of the property and the specifics of the property are shown.  The ad states the property is being listed at X dollars per SF.  Two questions:

1) In the ad, is it appropriate to give Zillow links to a few comps showing how much similar nearby properties were sold for in the past  3- 6 months? 

2) In the ad, is it appropriate to give Zillow links to a few nearby current listings to show how much similar nearby properties are being listed for?

Thanks.

When a lot doesn't have an address, the listing could say something like this:

0 Main Street VIC Palm 

or 

VAC Main Street VIC Palm

What do "VAC" and "VIC" stand for?  Thanks.