Real estate, whether residential or commercial, may occasionally be transferred to a new owner. But when carrying out these transactions, legal issues could come up, requiring the involvement of an expert witness to clarify probable legal issues.
The selling of property may have tax repercussions in certain circumstances. A person may lose eligibility for a tax benefit that they would have otherwise been eligible for when they transfer a property out of their own name that was a principal residence. The profit that a seller made through the sale of the property may be subject to capital gains taxes.
In some cases, someone may want to transfer property in order to preserve their legacy by giving it to the following generation or a reliable partner. The owner may, however, renounce all of his or her rights to the property after this transfer. However, the grantee can experience financial issues that force them to forfeit the property fast. If the person has creditors, for instance, the creditors may put a lien on the property. It might be necessary for the grantee to file for bankruptcy and sell the assets. If a grantee gets divorced, the property might be included in the judgment or settlement. Grantors may observe that their intentions about the property are not carried out in these ways.
The sale or transfer of a property may have an effect on several benefit programs. For instance, Medicaid patients can discover that their request for nursing home care is denied if a transfer for less than fair market value occurred within the previous five years. Medicaid is a means-tested medical assistance program, which implies that applicants must meet income and asset requirements. Many people are aware that once they are in a nursing home, they will not be able to access or use any real property. They might not, however, wish to renounce their property rights or their capacity to transmit property to cherished ones. If they want to enter a nursing home, they could desire to transfer their assets.
There would be a strong incentive for people to make valuable transfers if there were no regulation limiting people’s capacity to do so once there was proof that they will require nursing home care. For these reasons, Medicaid includes a look-back regulation that imposes a fine on individuals who transfer or give away property in an effort to qualify for Medicaid benefits. The time frame of reference is five years. The number of months and days during which the applicant would not be eligible to receive benefits for nursing home support is determined as part of a penalty period.
When faults are made in the deed, legal problems may occur. A buyer may lose a section of the property or get an easement that gives the seller or others access to the property that they never intended to have if a deed is improperly worded. A seller may also include extra land in the deed that was never intended to be included. It’s also possible that the deed wasn’t properly documented, which could cause problems. This may have an impact on taxes as well as who is legally regarded as the owner of the property.
The classification of property and the manner in which it is transferred are other possible problems that could emerge in relation to property transfers. When a person has joint tenancy, their property passes to the individual specified in the deed upon their death. The deed takes precedence even if someone else is named as the beneficiary in his or her will. Tenancy-by-the-entirety tenants having the deed transferred to their spouse.
The chain of title will be examined when selling a piece of property. If problems with the title are found during this stage, such as a lien being put on the property or an improperly registered transfer, problems may arise.
When ownership transfer-related legal issues come up, an expert witness could be required to provide an explanation of how the issue came about and who is responsible for it. He or she could describe the nature of the problem and its legal repercussions. He or she can also go through the magnitude of the damages brought on by the legal error.
Craig Cherney is a trusted client advisor and a sought after real estate expert witness who is hired by the nation’s top Real Estate Litigation Attorneys to help resolve their litigated real property matters. Craig has appeared as a testifying expert witness before judges and juries in California, Arizona, Nevada and other jurisdictions across the country. Craig Cherney, Esq. Expert Witness Real Estate. 480-399-2342.