Q. I hope you can help confirm something for me. Somebody asked me a question and want to make sure I answered them right. They asked if on a Beneficiary Deed where somebody is taking title as sole and separate, they asked whether or not we still need a Disclaimer Deed from the spouse. My understanding is no, as it is an inheritance issue. At least that’s what I think. But please confirm that I was correct on this response.
A. Your answer has been my position all along. I assume we are talking about the grantee (beneficiary of the property open the death of the grantor) is married and we are trying to see if a disclaimer is normally required. The answer is no. I always consider this, as you noted, as an inheritance, which the Arizona Statutes consider a sole and separate asset of a married person.

Q. Can you think of any reason a title company would care where an “all-cash” buyer’s funds are coming from? Perhaps some Patriot Act reason? I had a real estate agent ask me about this but I could not think of any off the top of my head. He said a Title Company had asked for a sort of verification and he had wondered why. Thank you for your time.
A. Escrow Companies care because it’s the law when receiving significant cash. Uncle Sam is always concerned about money laundering and other improper things people do with cash. Generally Escrow Companies have to do special reporting for any cash transfers that are more than $10,000. Check in with your accounting department for the details and forms necessary.

Q. I wanted to run something past you. My company is working on a refinance. The spouse of the grantor did not sign the deed to the current owners. The grantor/seller is listed just as “a married man”. He was put into title with his mother as “a married man”. On the quit claim deed to him and his mother, it does state that “their intention to acquire said premises as joint tenants with right of survivorship and not as community property or as tenants in common”. The mother has died and the death certificate is filed. We are thinking the deed was a gift deed to avoid probate with the property. My question is, do we need to require a new deed to our borrowers with the spouse of the grantor signing?
A. To rely upon the assumption that the deed was gift and therefore considered a sole and separate interest of the seller, would be a stretch at this point. At least for me. Perhaps you have more details or some evidence of that. Although I could see where you are coming from, there is not enough here- yet. If you can establish the sole and separate status of the seller by reason of the circumstances of how/why he received the property with his mother, then that’s great. Otherwise, have his spouse deed out her interest.

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Copyright, John T. Lotardo. All rights reserved. John Lotardo (aka the TITLEMAN™) is Senior Vice-President and General Counsel for Stewart Title & Trust of Phoenix, Inc., and State Underwriting Counsel for Stewart Title Guaranty Company. He is a member of the National Advisory Councils for GoGetEscrow.com, GoGetLoan.com, GoGetNotary.com and GoGetRealEstate.com. For more about John, visit: www.GoGetEscrow.com/Get/Titleman or www.AskTheTitleman.com.