Legal Question in Real Estate Law in Rhode Island
What is the most cost effective and expeditous way to sell a piece of property t
A building lot in Rhode Island is co-owned for over 10 years. Two owners ..... one wants to buy out the other owner. What is the most cost effective way to sell/transfer the property from co-ownership to sole ownership?? Is it feasible to quick claim it over ???? Sign over the warranty deed ??? Or is a full closing necesary ??? An agreed price was settled on and both owners are in agreement to the deal. Thank you for your advise on this issue. GARY
1 Answer from Attorneys
Re: What is the most cost effective and expeditous way to sell a piece of proper
In a situtation like this, a title search should be performed because there may be liens on the property that neither owner was aware of. A warranty deed is the best form of ownership, so, in this case, the selling partner should be willing to give warranty covenants.
If the property has increased in value, the seller may be liable for capital gains tax, so a formal closing with a HUD statement is the most appropriate vehicle. In addition, the deed should be filed in the appropriate recorders office to evidence the new form of ownership. If title insurance was not obtained when the property was purchased by the co-owners, it should be acquired upon the sale so that both parties are protected against prior claims.
I hope this information is helpful. Feel free to contact me at 401-885-7200 if I can be of further assistance.
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