So I have a feeling that this is a question for a lawyer, and I plan on asking mine but I figured I would post it here, and then gather some ideas from you smart people and use that as a guide for directing my conversation with said lawyer.
One of my partners is concerned about one of our state codes which states:
Tenants in common or joint tenants shall be allowed to redeem their individual interest in real property for which certificates of delinquency have been issued under the provisions of this chapter, in the manner and under the terms specified in RCW 84.64.060 for the redemption of real property other than that of persons adjudicated to be legally incompetent or minors for purposes of this section. If the real property of any minor, or any person adjudicated to be legally incompetent, be sold for nonpayment of taxes, the same may be redeemed at any time within three years after the date of sale upon the terms specified in this section, on the payment of interest at the statutory rate per annum charged on delinquent general real and personal property taxes on the amount for which the same was sold, from and after the date of sale, and in addition the redemptioner shall pay the reasonable value of all improvements made in good faith on the property, less the value of the use thereof, which redemption may be made by themselves or by any person in their behalf.
My partner is making the assumption that we need to hold on to the title for the redemption period. I think that it means that the current holder of the deed is the one who gets whacked with the redemption. Now mind you, we plan on holding the on behalf of our LLC and wholesaling the property to other investors. Ideally we will sell the LLC to the investor to get around title seasoning requirements. All it takes is a quick court records check on the name of the current holders of the title to make sure that there are no current legal adjucations for incompetence or that there was a probate that would leave an interest to a minor child.
Thoughts, comments experiences?
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