No consideration designation on deed...

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No consideration designation on deed...
Posted by Ward-CA- on May 27, 2003 at 9:04 AM
In Reply to: No consideration recv'd/Multiple Grantors posted by Barry on May 27, 2003 at 0:32 AM
: Wow! What a great website! I found your grant and quitclaim deeds to be exactly what I was looking for! Thank you very much!
: I have possibly figured out a neato system for income tax avoidance and am busy implementing it with real estate. I have just been offered my first parcel for free, and I noticed that all forms include the phrase, "for valuable consideration". My project requires that I be the beneficiary of gifts, which I believe requires me to not offer any "valuable consideration" whatsoever, not even a dollar, (unless valuable consideration can also mean assuming liability for weed control, as is required in our town). What do I put in place of "valuable consideration" on the form and still maintain legality of transfer/correctness of procedure? The grantors in question are total strangers and unrelated to me.
: What boxes/blanks get crossed out or verbiage added for a zero dollar transfer? I'm thinking specifically of the transfer tax, but others might be needed that I am not thinking of yet. Any documentation required to prove it?
: Last, I am getting property that has multiple heirs/grantors. They are signing at different times as they live far from one another, and this first parcel happens to be important to me for another project/reason. I want to get even the possibly 50% ownership currently offered to me nailed down before worrying about getting the rest of the relatives to agree to the freebie deal, as I would be able to use the bare land parcel immediately. As long as I follow whatever percentages (might be) listed on the original deed, should I use the grant deed form, or is there some benefit to using the quitclaim form that is not immediately obvious to me?
: The parcel is considered bare land, adjacent to my personal residence (which encroaches upon it, sigh!), $500 assessed "value", no property taxes levied (below minimum), California land, Oregon owners.
: I realize this isn't directly compatible with your current operations, but I'm hoping it isn't too far afield either. I'm very pleased with what I've seen so far, and I am sure that I'll be sending you money soon enough for your assistance/training, as I believe that your program sounds like one of the best I've seen and your calm, reasoned answers sound like the very voice of experience!
: Thanks again for your wonderful site!
: Barry
=•=•=•=•=•=•=•=•=•=•=
Barry,
A conveyance given for no value is indicated as such where the documentary transfer tax is usually entered. It is the second line to appear in the body of the grant deed or quitclaim deed and should be filled in as follows:
Documentary transfer tax is: $ -0- Bonafide gift, grantor received nothing in return.
That’s ALL you have to do. Leave all other verbiage referring to valuable consideration, etc. as is. Your transfer tax declaration is what is taken for real.
You can safely ignore the percentages listed on the original deed when the parties deed to you, by inserting behind your name, an indication that they’re deeding you All of their interest:

hereby GRANT(S) to
Barry Jones, all of their interest to
the following described real property .....

And finally, it’s immaterial in this instance, whether you use the grant deed form or the quitclaim deed form. Also, you can have each party that's granting to you to use a separate deed form, especially since they are far apart from each other.
That way you won't have to mail one deed to several people to get them all to sign it.
Hope this helps.

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Comments: : : Wow! What a great website! I found your grant and quitclaim deeds to be exactly what I was looking for! Thank you very much! : : I have possibly figured out a neato system for income tax avoidance and am busy implementing it with real estate. I have just been offered my first parcel for free, and I noticed that all forms include the phrase, "for valuable consideration". My project requires that I be the beneficiary of gifts, which I believe requires me to not offer any "valuable consideration" whatsoever, not even a dollar, (unless valuable consideration can also mean assuming liability for weed control, as is required in our town). What do I put in place of "valuable consideration" on the form and still maintain legality of transfer/correctness of procedure? The grantors in question are total strangers and unrelated to me. : : What boxes/blanks get crossed out or verbiage added for a zero dollar transfer? I'm thinking specifically of the transfer tax, but others might be needed that I am not thinking of yet. Any documentation required to prove it? : : Last, I am getting property that has multiple heirs/grantors. They are signing at different times as they live far from one another, and this first parcel happens to be important to me for another project/reason. I want to get even the possibly 50% ownership currently offered to me nailed down before worrying about getting the rest of the relatives to agree to the freebie deal, as I would be able to use the bare land parcel immediately. As long as I follow whatever percentages (might be) listed on the original deed, should I use the grant deed form, or is there some benefit to using the quitclaim form that is not immediately obvious to me? : : The parcel is considered bare land, adjacent to my personal residence (which encroaches upon it, sigh!), $500 assessed "value", no property taxes levied (below minimum), California land, Oregon owners. : : I realize this isn't directly compatible with your current operations, but I'm hoping it isn't too far afield either. I'm very pleased with what I've seen so far, and I am sure that I'll be sending you money soon enough for your assistance/training, as I believe that your program sounds like one of the best I've seen and your calm, reasoned answers sound like the very voice of experience! : : Thanks again for your wonderful site! : : Barry : =•=•=•=•=•=•=•=•=•=•= : Barry, : A conveyance given for no value is indicated as such where the documentary transfer tax is usually entered. It is the second line to appear in the body of the grant deed or quitclaim deed and should be filled in as follows: : Documentary transfer tax is: $ -0- Bonafide gift, grantor received nothing in return. : That’s ALL you have to do. Leave all other verbiage referring to valuable consideration, etc. as is. Your transfer tax declaration is what is taken for real. : You can safely ignore the percentages listed on the original deed when the parties deed to you, by inserting behind your name, an indication that they’re deeding you All of their interest: : : hereby GRANT(S) to : Barry Jones, all of their interest to : the following described real property ..... : : And finally, it’s immaterial in this instance, whether you use the grant deed form or the quitclaim deed form. Also, you can have each party that's granting to you to use a separate deed form, especially since they are far apart from each other. : That way you won't have to mail one deed to several people to get them all to sign it. : Hope this helps. Optional Link URL: Link Title: Optional Image URL:

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