jtax
Level 10

Deductions & credits


@pk wrote:

 

4. @Opus 17  was only trying ( i think ) to point out that there may be difference  on the date when the donee/beneficiary  is the owner vs. when  all the paperwork is registered and finalized.  In the USA the closing day is the transfer date  and registration of the deed is just a formality ( usually within a few days ).

 

I know this has all gone on too long, but one more comment. The registration of the deed is not just a formality. Ownership changes with the execution of the dead. But as they teach in 1L Property law, the new owner's interest will fail if someone else purchases the same interest from the seller without knowledge of the first sale (a "bona-fide purchaser for value"). And people do indeed sell the same property more than once. By registering the deed, notice is given of the sale and knowledge will be imputed to any subsequent purchaser because they should check the registry. 

 

A bona-fide purchaser for value receives a good title. The first purchaser does not actually own the property. What they have is a tort-claim or breech-of-contract claim against the seller.

 

https://en.wikipedia.org/wiki/Bona_fide_purchaser

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