I live in a house owned by my mother and we mutually agree that I should take over ownership of the house as I've been paying all expenses associated with it, mortgage, insurance, repairs etc... The mortgage is in her name solely and so is the deed. Any ideas on the easiest way for me to take ownership?
2007-01-01 13:44:31 · 9 answers · asked by Patrick D 2 in Business & Finance ➔ Renting & Real Estate
You can have her quit claim the house to you and therefore transfer ownership to you. You can also see a lawyer and have the papers drawn up to transfer the house to you at a nominal price and give your mom a "life estate" meaning that even though it is in your name, she can live there for the rest of her life.
2007-01-01 13:58:43 · answer #1 · answered by otisisstumpy 7 · 1⤊ 0⤋
The easiest way to take title to property is by quit claim deed, signed in front of a notary public. After that you should take the notorized deed to the county court house in which the property is located to be recorded. This will cost a nominal fee to record at the county court and what ever the notary public charge you.
The best way to do this is look in your local telephone book and call a local title company. Tell them what you want to do. They will schedule an appointment to get things done at their office or come to your home. Most likely you will have to go to their office.
They will get you to sign the appropriate deed after which they will do the recording for you. This will cost a little more, but over time this will prove to be the best way and head off any potential future problems with signatures and legal problems.
I don't really understand why at this time the both of you have decided to do this transfer. You should see your tax advisor about any tax implications before you do this.
Are there other brothers and sisters that might be involved?
Your mother should make a living trust making you the trustee outlining what should happen to the property as well as any other property or money she might have, once she is no longer with us.
This living trust can be made up for a small amount of money and will enhance her will if she has one. She can have a living trust made up by an attorney or a para-legal. The cost is between $350.00 and $500.00. When you talk to a person that will make the living trust make sure they can fund it also. This should not be a seperate cost. There might be some listed in your local newspaper stating they do living trust.
What ever happens make sure the person that make up the living trust fund it before you pay the attorney or para-legal.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-01-01 14:10:54 · answer #2 · answered by Skip 6 · 0⤊ 0⤋
depending on your ages and her health, don't.
if you inherit the house, and you sell it the next day you have no tax liability.
if you get the house thru a quit claim deed, the method you are asking about, you are liable for taxes on the existing equity.
depending on your states laws, an internecine transfer is without transfer tax, but call your county tax collector AND assessor.
there is another issue. since you are paying the mortgage already, ask the co about an assumption. just because you own the house, it does not release your mother form the obligation of the mortgage payment.
you need to check with a cpa about your right to deduct the interest payment on your taxes if you aren't on the loan.
as i remember there are some issues that must be covered to get the irs not to challenge you.
2007-01-01 13:56:30 · answer #3 · answered by elmo o 4 · 1⤊ 0⤋
Quit Claim Deed
2007-01-01 17:35:43 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Be careful with the quit claim deed! See a cpa and an attorney. You could getting yourself in a terrible tax situation when your mother passes away if you aren't careful with transferring the house properly.
Good luck.
2007-01-02 06:53:51 · answer #5 · answered by splatz 2 · 0⤊ 0⤋
Be careful about adding a name to the ownership of the home,read this article,, it is better to have your mother spend a few $$ for a living trust.. granted the news article is a few yrs old, but some good insight.
2007-01-01 14:04:02 · answer #6 · answered by tshark44 5 · 0⤊ 0⤋
Another way to do this is to simply file a quit claim deed. It is easy and cheap and some states allow for a one time transfer "for love and affection" which allows your mother to sign it over with no taxes.Otherwise she may have to pay the excise tax depending on your county rates. Ours is 1.78.
2007-01-01 13:59:08 · answer #7 · answered by queenvwr 2 · 0⤊ 0⤋
My husband and I actually did this with his mother's house. She simply sold it to us for $100 and we became the owners. It was done exactly like you buy any other house, except the amount of purchase, of course. We contacted the bank that held the mortgage, and they put us in contact with a title company. They took it from there. We just had to show up for the closing. Took about two weeks total.
2007-01-01 13:54:46 · answer #8 · answered by Elayna R 2 · 0⤊ 0⤋
Consult a lawyer. If the two parties have come to an agreement have papers typed up professionally and signed and dated by both parties in the presence of a notary public whom can then put his/her notarized signature on the papers.
2007-01-01 14:10:41 · answer #9 · answered by twotwo 1 · 0⤊ 0⤋