So, we (me and my 2 siblings) have inherited a 6.5% interest in a commercial property. As executor, I gave everyone the option to purchase this interest at a 15% CAP rate. This make sure that whoever buys it, will at minimum get their cash out over the course of the lease (5 years left), and also made it clear that if tenant renews, then it is a great deal, but that is a big IF. You could be left with an empty building worth about 30% of its original cost. Basically, they bought a 15 year lease and are making 7% on the cash invested. So now you know the backstory.
Neither of the siblings want the property, so I have bought them out. My question is, how to I document the transfer of interest to me from the estate? I only have a 6.5% interest, so I assume I have no need to get a quit claim signed. I was thinking a memo of understanding between the parties stating that they have been paid and have no interest in the property, and the interest will go to me. Have this signed and notarized and kept with the file. Would this be enough? What issues could pop up in the future?
Has anyone has to deal with this before? How did you handle it?
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source https://www.reddit.com/r/RealEstate/comments/1sx9wio/inheritance_question/
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