Property Sale Clarification Needed
Summary
In West Virginia, a purchase agreement isnt legally required for property transfers, but it offers clarity and protection. The nominal $1 or $10 in deeds signifies a transaction, while the actual value, $45,000 in this case, is declared separately. Ensure all terms are clearly outlined, especially with multiple sellers.Full Conversation
I am selling my stake in my father's property in West Virginia, USA. ****y brothers will also be selling their stakes to the same buyer. I have been sent the deed of conveyence to sign which states "That is consideration of the sum of One ($*.*) Dollar, and other good and valuable considerations not herein set forth, the receipt of all of which is hereby acknowledged, the Grantors do hereby grant, bargain, sell and convey all of their right, title, and interest unto the Grantees, with covenants of general warranty, the following described real estate" then it lists the property.
At the end of the deed, it states, "Declaration of Consideration of Value: Under the penalties of fine and imprisonment as provided by law, the undersigned Grantors hereby declare the total value of the property transferred is $*,*."
I sent a question to the lawyer representing the buyers about this. I said, "Regarding the deed, it mentions the generic consideration (like the $*, cash in hand, and so forth), which usually hints at a more detailed Purchase Agreement containing the actual sale price and payment terms; however, the letter I received only contained the deed. While I don't want to needlessly delay the property's sale, I'm a bit hesitant to proceed without a Purchase Agreement between all parties involved for my own record keeping and any possible tax reporting purposes. It's also a slightly less straightforward sale due to there being multiple sellers owed equal shares, and a Purchase Agreement would help to set that out with all in agreement and record it for the present as well as if ever needed in the future. Could you possibly discuss this with your clients?"
The lawyer replied with, "As for the $*.*, every deed in W.V. has either $*.* or $*.* in the body of the deed (it is completely a form item to ensure that all requirements are met regarding consideration and in no way means that only $*.* or $*.* was paid, but also in no way hints or implies that there is a purchase agreement). The value that has been agreed upon by the parties is placed at the end of the deed, prior to the signatures. On your deed it is $*,*.*. (as indicated on page *). There is no purchase agreement to my knowledge and no purchase agreement is required under the law, but, of course, as an owner, you can refuse to sell without one. Do you want me to convey that you are not comfortable proceeding without a purchase agreement? And, if so, do you want me to tell them they have to pay for it or it will just come out of your proceeds? (Generally, they are $*, so, not a big deal either way, I would imagine)."
What are your thoughts?
Your concerns are valid. While it's correct that in West Virginia, a purchase agreement isn't a legal requirement for property transfers, it does offer clarity and protection. It could be beneficial to have one, especially with multiple sellers involved. If you decide to proceed, ensure all agreed terms are clearly outlined.
What do you think about the lawyers explanation about the value of the home in the deed?
The lawyer's explanation is correct. The nominal amount of $* or $* is a common practice in property deeds to signify a transaction took place. The actual agreed value is declared separately, in your case, $*,*. The deed is the important legal document here.
But this document does not actually state this is the value to be paid or?
The document states that the agreed value of the property is $*,*. However, it does not explicitly mention that this is the amount to be paid by the buyer. It would be prudent to clarify this in a separate purchase agreement.