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Virginia
Guest
0.10 Dollars($)
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 Posted: Fri Jun 06, 2008 9:34 pm Post subject: quit claim deed |
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| We have purchased a home for our son with a 1031 exchange. He will pay the taxes and insurance and we will receive rent from him. AFter two years we would like to be able to put the property in his name but retain being his financial on the property. Can we just sign a quit claim deed to change it to his name and not have to go through a title company and pay the closing cost again? |
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 larry
Joined: 27 Jun 2007
Posts: 3328
473.51 Dollars($)
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| Posted: Fri Jun 06, 2008 11:05 pm Post subject: |
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Hi Guest.
Welcome to the forum.
You can quitclaim the property to your son by using a quitclaim deed but is it a mortgaged property? If it is a mortgaged property then you will need to take confirmation from the lender before quitclaiming the property to your son and the lender may ask your son to refinance the mortgage on his name only as he will be the owner of the property after you quitclaim to him.
Feel free to ask if you have any further questions.
Best of luck,
Larry |
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Virginia
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0.10 Dollars($)
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| Posted: Sat Jun 07, 2008 7:10 am Post subject: quit claim deed |
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Thank you for your reply, Larry. We are the mortgage holder. In other words we bought the property with our 1031 cash. We will retain the mortgage and our son will pay us, but will the quit claim deed let it be in his name and now count as his house?
Thanks, Virginia |
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Jeanette
Community Experts
Joined: 19 Oct 2007
Posts: 121
Location: 760 Lynhaven Parkway, suite 140 Virginia Beach, Virginia
36.24 Dollars($)
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| Posted: Sat Jun 07, 2008 8:34 am Post subject: |
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Hello Virginia
A 1031 Exchange is a "like kind" exchange that is recognized by the IRS. Thus you must relinquish one property for the exchange of another that is identical. This become tax deferred if the 1031 exchange rule is followed. The foundation of 1031 exchange rule by the IRS is that the properties involved in the transaction must be "Like Kind" and Both properties must be held for a productive purpose in business or trade, as an investment.
You can retain the mortgage in your name and do the quit claim or grant deed to have the title in his name. However, as Larry mentioned, consult your lender and advise them on what you did and they will direct or consult you. You may want to consider putting the title in both you and your sons named
Jeanette Smith
Mortgage Planner
Union Mortgage Group
www.umgva.com
_________________
Life is like a bull grabit by the horn |
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Virginia
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0.10 Dollars($)
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| Posted: Sat Jun 07, 2008 8:51 am Post subject: |
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| Thank you for your help. Virginia |
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Audra
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| Posted: Sun Jun 08, 2008 6:38 am Post subject: Quitclaim Deed |
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Hi Virginia,
In regards to removing yourself and husband off title, Lenders do not traditionally allow this because if they had to foreclose on the property, they would have a tough time coming after you or your husband since you would no longer have an interest in the property, but the original terms of the loan were with the two of you in consideration. A lender will want all parties in credit on the title to the property which will provide them more security. Also you will be bound to all the rules of your 1031, so would definately talk with an Attorney prior to changing any status to title.
Hope that helps! 
Aj |
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