Posted: Wed Dec 30, 2009 8:13 pm Post subject: A series of questions regarding AZ Quit Claims
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I'm attempting to make sure I understand the procedure of a Quit Claim, and am following it correctly.
Via informal agreement, my mom has enabled me to purchase a home in Arizona. She lives in California. The mortgage and title are in her name, but I have been making the payments for the last three and a half years, as per our informal agreement.
She is now attempting to get her own home refinanced, and needs to remove the home from her name in order to do so as per her bank.
The bank is fine with her proving that I have been making payments for the last 12 months on the property to have the mortgage ignored in her refinancing, so that part is taken care of.
Via a Quit Claim, this would remove her interest in the property and remove her name from the title, and have no effect on the mortgage of my home, only the property tax and title being changed from her name to mine, correct? She would still hold and be responsible for the mortgage for all intents and purposes, or would the mortgage then shift into my name?
Next question. Is she able to have a form used for Arizona notarized in California, mailed to me, and allow me to file it at the county recorders office, or will she need to come out here and file / notarize it herself?
And onto the next question: After the form has been filled out and submitted to the recorder's office, who else will need a copy of it for the process to be finished, or would that be it? Would she or I need to let the mortgage company know?
Yet another one: On many but not all of the sample forms I've read online, it has the line "For the Valuable Consideration of Ten Dollars ($10.00), and other good and valuable consideration, cash in hand paid..." Does this essentially mean I've paid them $10 for their interest in the property, for tax and accounting purposes? Other forms do not list a cash value.
Relating to Gift Taxes, as the grantee I do not have to worry about this, right? The Gift Tax is only something paid by the granter?
Lastly, I do plan to refinance the loan into my name "Eventually". Quit Claiming the home into my name would pose no problems on this and if anything would be a requirement at some point, correct?
Sorry for all of the questions, and somewhat redundant ones, I just want to be well informed before I try taking a week day off work to resolve this. Thank you for your assistance, I greatly appreciate it.
Your mother will have to sign a quit claim deed in your name transferring the property to you. Thus, you become the sole owner of the property. However, you need to inform your lender about this ownership transfer. There are chances that the lender will ask you refinance the loan.
As the property is located in Arizona, your mother will have to use a quit claim deed form of Arizona and notarize and record the deed at the county recorder's office where the property is located. Once it's recorded at the county recorder's office, the property transfer is complete. You may even pay $1 while there is a change of ownership. It's not mandatory to pay $10. As you're the grantee to the property, you should not worry about the gift taxes. Yes, it is paid by the grantor. _________________ Procrastination is the enemy of your financial success
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