My Grandma wants to transfer a house deed to me, my brother and my mom. 3 people. Ive heard quitclaim? grant? etc... I dont know the details. Thanks!
2007-10-23 05:48:08 · 5 answers · asked by Jay 1 in Business & Finance ➔ Renting & Real Estate
Unless your grandmother owns the house with no mortgages, most attorneys will not prepare a Quit Claim Deed or Deed of Gift. The reason being is with the two Deeds stated above, there is no consideration (sales price). And for her to "give" it to you, they would see it as you both trying to avoid having to pay taxes, getting a loan for it, etc.
If she has a mortgage, the lender will require that the person on the loan must remain on title. Otherwise, she will go into default and if they felt like being a prick they could foreclose. There is a clause in the Deed of Trust saying that any transfer of the property must be approved by lender before taking place otherwise you could potentially forfeit your right to the property even if you are paying the mortgage.
2007-10-23 09:57:54 · answer #1 · answered by Anonymous · 1⤊ 0⤋
All depends on what state you live in. But in most cases, Quit Claim Deed or Deed of Gift, either on should be fine. You also need to find out if your Grandma's house is paid in full and if not after transfer you need to refinance under you, your mom or in your brother's name. This process will be done by a Title Company so call your local Title Company.
2007-10-23 13:51:33 · answer #2 · answered by Victoria78 2 · 0⤊ 0⤋
You use either a quit claim or grant deed, you need to check how the current deed is registered.
The real question is whether it makes sense. When a person sells a property, the person gets a tax exemption of $250,000 single (Joint $500,000) on the gain of the house. If you grandmother gives it to you, you get the house at the cost basis that she paid for it. If she has lived in it for a long time, that could be quite low and might give you a capital gains problem in the future.
If you are worried about her health, think about long term care insurance. Also, make sure she has a Health Care Proxy and a Financial Proxy.
2007-10-23 14:02:53 · answer #3 · answered by nystom 2 · 0⤊ 0⤋
File a Quit Claim Deed is definitely the best way to go about transfering the deed. Speak with a title company of real estate attorney about getting this done. Its a relatively simple process.
2007-10-23 12:54:52 · answer #4 · answered by Steve W 2 · 0⤊ 0⤋
Talk to a lawyer or title company. Each manner of transfer has benefits and deficits. There are tax ramifications too, so an expert will help you choose the better method of transfer.
2007-10-23 15:41:22 · answer #5 · answered by Debdeb 7 · 0⤊ 0⤋