Straw Party Agreement Pennsylvania
The first amendment to the rules, section 91.132, concerns transactions in which the contract of sale is assigned by the buyer to a third assignee. The Revenue Department collects a transfer tax from the seller on the basis of the total amount paid at the time of transfer to the seller, unless it is taken into account in the deed. While the regulation clearly identifies the tax for which the seller is responsible, the regulation does not explain which taxes the buyer/assignee and the customs officer are liable for in the middle of the transaction. At least one major insurer in PA, First American Title, has instructed its agents and licensed attorneys that these parties should be liable for tax on the remainder of the consideration that was not paid to the seller. In other words, if you sign a $50,000 purchase agreement and sign that agreement for $5,000, the transfer tax is levied by the seller on a portion of the total consideration of $55,000 paid to the seller, regardless of the price on the deed, which is only $US $50,000, and the buyer and assignor are responsible for tax on the remainder of the total amount of $55,000 paid to the seller. If a straw party considers real estate in the interest of the real party, all ownership incidents, with the exception of legal title, are in the interest of the real party. The straw party cannot benefit from the property. In other words, a person wishing to buy a property in his own name and then transfer it to his company cannot claim the tax exemption of the parties to the straw. § 5490.1-5490.13). Initially, the only parties to the trials were the supervisors and the BPG-2. Subsequently, the NSEs intervened by mutual agreement.
Later still, the other development companies owned by the 168 Acres, next to the 51 Acres of BPG-2 (which includes the 219 large conflires mentioned in the settlement agreement) intervened with the permission of the court.3 Example 1. X enters into a contract with Y for the assignment of real estate for $US 100,000. Y then transfers the contract of sale to Z. Z undertakes to pay Y $900,000 for the assignment. As a result of the assignment, Z undertakes Y`s commitment to pay the sale price of US$100,000 to X for the transfer of ownership. Therefore, the total amount Z has to pay as a result of the divestiture is $1 million. After the assignment, X keeps a document of transfer of the property to Z. Z pays X the sale price of 100,000 USD and pays Y 900,000 USD for the transfer.
The assessed value of the deed from X to Z, for which X is responsible, is the initial sale price of USD 100,000. . . .