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What are the tax implications of quit claim deed?

Posted on: 28th Dec, 2005 09:16 am
What are the tax implications of a Quit Claim? Who pays the property tax?

Thank you.
When someone aquires property as the result of a Quit Claim Deed, is it aquired at the current value (for tax purposes) or the original purchase price.
Posted on: 19th Apr, 2006 07:02 am
Hi Jessie,

In a quit claim deed the tax is based on the actual consideration paid for the real estate property.

Thanks,
Blue
Posted on: 19th Apr, 2006 10:22 am
I would like to mention here that, in a warranty deed the tax is calculated on the basis of the fair market value of the property.
Posted on: 19th Apr, 2006 10:25 am
I am 64 yrs. old and want to transfer ownership of my home to my daughter. There is a mortgage on the home. My mortgage co. tells me I can add her name to the mortgage and title with a quit claim deed. I want to make sure that when I die, the home will automatically belong to her. I want to make sure that any debtor that I might owe (such as nursing home, medical expenses or even credit cards - any debt at all) at the time of my death will not be able to place a lien against the house.
Posted on: 26th Apr, 2006 05:26 am
Hi goldie

Yeah your mortgage company is right. You can add her in the title through deed. For making her the owner, what I can suggest you that you can make a will in which you can make your daughter the owner of the house.
Posted on: 26th Apr, 2006 09:01 am
hi goldie,

through a quit claim deed you may add her name to the title of the house or can make a will as mac suggested.

but to prevent any lien from being placed against your house, you have to look at the agreement of the debts.

it's best to consult a lawyer to have proper guidance regarding your problem.

regards,
blue
Posted on: 26th Apr, 2006 09:46 am
My duaghter purchased a house a year and a half ago, she is now having some money issues, we would like to help her. she has a arm type loan that has a penalty of 5% for early payoff. we are thinking that the property is worth the add on cost of the 5%, and our Idea is to have her quit claim the property to us and then refianance the home for a lower interest rate, and then when she is more able, quit claim it back to her. does this sound alright? and what happens regarding the loan, she then becomes responsible for the loan that I obtain for her. what costs would we incur besides the refi, and would this work? we would rent the home to her during her recovery period and help with the costs where needed.
Posted on: 30th Apr, 2006 06:25 pm
hi,

welcome to the forums.

the plan sounds good to me. but after quit claim deed when you refinance the loan in your name, you will be held responsible for the loan. and after that when you again quit claim the property to your daughter you will again have to undergo a process called novation or again go for refinance in order to transfer the mortgage back to her.

please feel free to ask if you have any more doubts.

thanks,
jerry
Posted on: 30th Apr, 2006 08:45 pm
Hi,

Doing a quit claim deed may help but it depends on the lender if he will allow for it twice. Also, if you are refinancing the home, you need to add your names in the mortgage note. This will make you responsible for the payments.

But remember, a quit claim does not guarantee clear title to the property. It offers no warranty as to whether any other person may not claim your property. The lender may ask you to sign a title deed and get the ownership rights before he transfers the loan in your name.

As long as your names are in the title, you will be responsible for paying the mortgage. So, it is always better that you discuss the whole thing with the lender and find out if he's going to agree to this. Only then you can proceed.

Thanks,

Caron.
Posted on: 30th Apr, 2006 09:01 pm
as our friend has health problems and had named us as the grantees in his property in lieu of money owed to us. to recover this money must we now take out a new mortgage on his property and if so how quickly as i understand it this deed does not give us title or guarantee any return of our money am i correct :oops:
Posted on: 01st May, 2006 05:30 am
Yeah,
"
as i understand it this deed does not give us title or guarantee any return of our money am i correct"

You are right on this whity. This wont give you the money that he owe you.
Posted on: 01st May, 2006 05:45 am
Hi Whity,

I agree with Adonis, you won't be getting any title as you haven't signed any deed I suppose. Also, the mortgage cannot guarantee any return of your money.

Thanks,

Caron.
Posted on: 01st May, 2006 08:45 pm
need answer fast
Posted on: 08th May, 2006 07:42 am
Hi Tammi,

To get someone's name off the deed, that person has to sign a new deed and transfer his interest in the property to you or the person he wants.

The deed needs to be notarized and recorded at the registry of deeds. The approximate fee for filing a deed is $125. It is always advisable to hire an attorney to get this done.

James
Posted on: 08th May, 2006 10:13 am
Posted on: 10th May, 2006 04:21 am
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