Legal Question in Real Estate Law in California

Re: Re Grant Deed

You do not provide enough information to give you a good answer. For tax purposes, the "profit" is the full value less the amount that is your basis. A mortgage on the property is not part of the basis because it is being paid for by the buyer within the sales price and you already got the "money" from the mortgage. The IRS looks at the sales price plus any liens that are eliminated to determine the income form the sale. If this is a standard house purchase, the buyer will just say I will give you $X. If it is a commerial sale then whether any encumbrances are picked up in the sale of a business is important because sometimes businesses are sold with the buyer not assuming all the debts of the business. If you are represented by a real estate broker, ask them until you are satisfied with the answer