Can we change deed before full payment of loan?

Guest 0.10 Dollars($)

My parents and I have bought a house together and we are equal partners to the purchase. The mortgage has all of our names on it. We shall be able to pay it off in the next 5 years . My parents and I are thinking of changing the names in the deed to only my name. Can we do this before paying the loan fully? How to go about this?

adonis · Posted: Mon Dec 04, 2006 10:32 pm Post subject: RE:

Yeah, I believe changing the title is possible.

Adonis

Caron

Hi Allen,

It is possible to transfer title prior to repaying a home loan. Your parents can sign a quit claim deed and hand over the property to you. But depending upon the equity transferred, your parents may have to pay federal gift taxes provided the equity is worth more than $12,000 per donor (for 2006). However, no gift tax will be due if their lifetime gifts worth more than $12,000 per donee, per year do not exceed a total of $1 million.

I think it is better if you consult a tax advisor on this issue.

Thanks,

Caron.

All times are GMT - 7 Hours

Page 1 of 1