Offlinedoes anyone else have the problem of having to pay transfer tax twice on assignment????
I talked to a lawyer who said it is possible to avoid this using a consulting agreement with the end buyer?
any help would be great anyone have a consulting agreement and how can i have control of the property doing this
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Maybe on a double close but never on a contract assignment. There is only one closing when doing an assignment, you are stepping out of the buyers position on the contract and your buyer has been assigned that position. You collect your assignment fee as part of the buyers expenses. This will show on the HUD1. All totally legit.
1. Get the property under contract.
2. Assign the contract
3. Your buyer takes over and pays all the costs established in your contract (from step 1) plus your assignment fee.
Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC
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Hey Sam,
You may have seen me post this before, but here is what I do and how I did it:
1) I asked the County Auditor how to note and get an exemption
2) I do not do double closes, so my fees are transparent, but oh well any investor can look up what I paid anyway.
3) I take possession of the deal, but have it funded by my buyer. I do a side agreement (per the County Auditor) called an Agent / Principal Agreement with my buyer.
4) I Quit Claim the deed to the new buyer after I get my fee (by a side agreement with me as a consultant) on this, please go by your attorney, as there are some folks on this site that have said this has issues, which I have not encountered.
5) When recording the QC, there is a Disclosure Form in my county that has several different exemptions-- the one that applies is to show rightful ownership (by way of the Agent / Principal Agreement).
This is how I do it and I did it by asking all my mentors first, then ending up asking the source-- the county. Voila!
Keep doing it.
- Tina
Never, Never, Never Quit, N3Q
"Nothing happens until you place an offer."
"Skip Deal #1, go straight to Deal #2; it's so much easier."
"There is nothing so useless as doing efficiently that which should not be done at all." — Peter F. Drucker... so, "Don't sweat the small stuff." -R.Carlson. "The greatest mistake you can make in life is to be continually fearing you will make one."~E.Hubbard, The Note Book, 1927...so, Do it for the right reason and "Do it with a headache!" - Dean Graziosi, Weekly Wisdom #176
@ Michael for some reason in PA they do double tax assignments its weird here but if you Google transfer tax on assignments in PA you can see i'm screwed
@tina i talked to a lawyer who said i can get around the double tax by setting up a consulting agreement with the buyer. and i also wanted to know more about your process. do you add the end buyer as a co buyer and then quit claim off the title after you get paid? that is how im understanding that