Wednesday, January 23, 2013

$1 deeds

The number of deeds recorded is an important statistic in tracking the local real estate market.  On any given day, however, many of the deeds recorded are not arms-length transactions.  Instead, they recite consideration of $1 and are typically between parties that are related in someway.  Assuming that the percentage of these deeds is a constant, tracking the total number of deeds recorded each day is an accurate indicator of trends in the market.  Still, the percentage and reason for these $1 deeds is also of interest.  Just yesterday there were 32 deeds recorded.  Eighteen of these - 56% - were for $1.  While the circumstances of each of these deeds might not be stated explicitly, they often can be discerned from the context of the document.  Here's what I found from yesterday's group:

5 deeds conveyed property into a family trust
1 conveyed it out of a trust
2 involved divorcing couples transferring the real estate to one of them
2 involved HUD and another lender
1 was used to change a name after a marriage
3 conveyed property to the owner and the new spouse after marriage
4 involved heirs of the same estate transferring the same parcel to a third party

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