Posted on: 05th Feb, 2007 07:11 pm
i own property that my uncle lives in and he wants me to sign a quit claim deed. the property still has a mortgage. what's the purpose of a quit claim deed, will my name still be on the loan & whose name will be the property taxes be in?
Hi Nadramw,
Welcome to the forums.
You need to ask your uncle as to what exactly he wants through the deed. Perhaps he wants you to sign on the deed and transfer a certain percentage of your interest in the property to him.
In general, quit claim deeds are used to add/remove a person's name from the title. For instance, you may add anyone to the property-title through quit claim deed. You are the grantor here and the person added to the title is the grantee.
Both the grantor and grantee own the property but their interest in the property may not be equal, that is, if the property is sold, each may receive different shares of the sale proceeds.
Thanks,
Sara
Welcome to the forums.
You need to ask your uncle as to what exactly he wants through the deed. Perhaps he wants you to sign on the deed and transfer a certain percentage of your interest in the property to him.
In general, quit claim deeds are used to add/remove a person's name from the title. For instance, you may add anyone to the property-title through quit claim deed. You are the grantor here and the person added to the title is the grantee.
Both the grantor and grantee own the property but their interest in the property may not be equal, that is, if the property is sold, each may receive different shares of the sale proceeds.
Thanks,
Sara
Your name will still be on the loan even if you use a quit claim deed to add someone to the title to your property.
The property taxes will be paid by property owners. In case, both you and your uncle are the owners, both of you may contribute towards the property tax.
The property taxes will be paid by property owners. In case, both you and your uncle are the owners, both of you may contribute towards the property tax.
Nadramw,
Since the property has a mortgage over it the lender should be made aware of the fact that you want to include your uncle as a co-owner or want to give it to him.
The mortgage may have a due on sale clause which requires mortgage pay off if the title ownership changes. Inquire with your lender whether any such clause exists over your mortgage or not and also if he will allow your uncle to be included in the property title or not. The lender can ask for the mortgage to be refinanced in his name or made a co-borrower along with you.
Miller
Since the property has a mortgage over it the lender should be made aware of the fact that you want to include your uncle as a co-owner or want to give it to him.
The mortgage may have a due on sale clause which requires mortgage pay off if the title ownership changes. Inquire with your lender whether any such clause exists over your mortgage or not and also if he will allow your uncle to be included in the property title or not. The lender can ask for the mortgage to be refinanced in his name or made a co-borrower along with you.
Miller