Posted on: 21st May, 2009 09:30 am
Hi,
I recently purchased a home. Since I was not able to get the mortgage in my name I used my cousin as a co-signer in the mortgage. The bank wanted us to be joint-tenant of the property; otherwise they would not give us the mortgage. Before going to the lawyer my mortgage agent told me that he will only have 1% share in the property and I will have 99% share. Since it was the last day before closing of my house and since I did not have any other options, I signed on the papers for joint tenant. Now I want to have the property in my name since having him on the title involves so many complications, since he may later legally claim on the properly and I am the one who will be living in that house and paying all the monthly payments and he did not paid a single penny towards down payment or whatever it cost me to acquire the house. Will a Quitclaim deed be enough to transfer the ownership title in my name, and how will I avoid land transfer taxes. I don’t mind him to be on my mortgage but having him on house title is not acceptable. Is there any gift deed which can be used to get an exemption from the taxes, because otherwise I will have to pay $4,000 for land transfer taxes?
I recently purchased a home. Since I was not able to get the mortgage in my name I used my cousin as a co-signer in the mortgage. The bank wanted us to be joint-tenant of the property; otherwise they would not give us the mortgage. Before going to the lawyer my mortgage agent told me that he will only have 1% share in the property and I will have 99% share. Since it was the last day before closing of my house and since I did not have any other options, I signed on the papers for joint tenant. Now I want to have the property in my name since having him on the title involves so many complications, since he may later legally claim on the properly and I am the one who will be living in that house and paying all the monthly payments and he did not paid a single penny towards down payment or whatever it cost me to acquire the house. Will a Quitclaim deed be enough to transfer the ownership title in my name, and how will I avoid land transfer taxes. I don’t mind him to be on my mortgage but having him on house title is not acceptable. Is there any gift deed which can be used to get an exemption from the taxes, because otherwise I will have to pay $4,000 for land transfer taxes?
hi misty!
welcome to forums!
as your cousin is a cosigner of the mortgage, i don't think it will be easier for you to remove his name from the property deed or mortgage. a quitclaim deed can be used to remove his name from the property deed, but you will have to refinance the mortgage in your name. if you do not qualify for a refinancing, the lender will not let you transfer the property in your name or refinance the loan.
feel free to ask if you have further queries.
sussane
welcome to forums!
as your cousin is a cosigner of the mortgage, i don't think it will be easier for you to remove his name from the property deed or mortgage. a quitclaim deed can be used to remove his name from the property deed, but you will have to refinance the mortgage in your name. if you do not qualify for a refinancing, the lender will not let you transfer the property in your name or refinance the loan.
feel free to ask if you have further queries.
sussane
Hi,
I don't get it, why would I need to refinance my mortgage for just using quitclaim deed. I just want his name to be removed from the property not form the mortgage.
I don't get it, why would I need to refinance my mortgage for just using quitclaim deed. I just want his name to be removed from the property not form the mortgage.
Hi Misty,
The lender will want you to refinance the mortgage in your name as your cousin is removed from the property. The lenders want that the owner of the property should be on the mortgage.
Thanks
The lender will want you to refinance the mortgage in your name as your cousin is removed from the property. The lenders want that the owner of the property should be on the mortgage.
Thanks