My mom wants to sign her house over to my husband & I. We are already living in the house and have been paying the mortgage payments, the house is just in her name. I have read about a "quitclaim deed" is that something that we can do or will we actually need to go through the process of buying the house to get it in our names. I live in Phila PA if that makes a difference.
2007-08-01 19:27:53 · 5 answers · asked by bebegurl 2 in Business & Finance ➔ Renting & Real Estate
Quit claim won't work because you are not on title. A grant deed is the most common type of deed used to transfer property from a seller to buyer. Grant deeds are used for properties that are mortgaged and not mortgaged. The mortgage can stay in her name but you can hold title. Contrary to what people think and unlike an automobile, upon closing of the property’s purchase/sale, the title company records the grant deed at the county courthouse and sends the buyer the original in the mail. She can transfer it to you and she will still have the mortgage burden (which I hope you will pay) until you feel like refinancing it into your name but the property will be yours.
2007-08-01 22:45:52 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You can do a quit claim. However, you will most likely have to pay gift tax on it (not necessarily at the time the quit claim is done, though). If you buy it from her, you can buy it at a price below market value but will have to pay gift tax on the difference (there is a small amount that is excluded - something like $10,000 per person per year). I don't remember what that exact amount is, though. If you buy it and have to get a mortgage for that amount (selling it to you for $1 or something like that won't help you avoid the gift tax as the difference in that $1 and the fair market value is considered a gift), you will have closing costs.
You guys will be better off if she just adds your name to the deed and then it becomes your exclusively when she dies. This avoids probate on the house, but could cause problems should you guys have a "falling out" before then.
2007-08-02 02:45:05 · answer #2 · answered by sortaclarksville 5 · 0⤊ 0⤋
Yes you may your mother may quit claim the deed to you and your husband. That is perfectly legal. All you have to do is sign the quit claim deed in front of a Notary Public after which you would take the signed and notarized deed to the county recorder's office for recording.
The best way to do this is to look in your local telephone book and find a Title Company. Make an appointment with them, sign the quit claim deed in front of their notary after which they will insure that the deed is recorded at the county recorder's office.
This could save a few possible legal problems in the future.
Prior to doing this I would check with my tax preparer and get some advise from him/her about any tax consequences that might arise from the transfer of this property.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-08-02 04:18:16 · answer #3 · answered by loanmasterone 7 · 0⤊ 0⤋
she should be able to add you to the deed - and then you can then remove from it later on - but it's probably quicker to buy it - but if she sells it to you for less than fair market value you have to claim the difference on your taxes as a capital gain - look out for the taxes - they hurt
2007-08-02 02:36:55 · answer #4 · answered by lancej0hns0n 4 · 0⤊ 0⤋
yes i think so my dad once did it to my bothers
2007-08-02 02:30:45 · answer #5 · answered by daddys girl 1 · 0⤊ 0⤋