Posted on: 06th Jul, 2007 09:39 am
10yrs ago we bought a house with my husband and his brother 50/50, later we refinanced and included my brother in law's wife, we have now decided to buy the share of the house from my brother in law & wife. We refinanced (me and husband) to payoff the morgage and get the cash so that we could pay my brother in law however, aside from the quickclaim form that my brother in law signed what other form do we need?, also should my brother in law's wife have signed the quickclaim deed? Also are there any tax issues we should be concerned about?
Thanks!!
Thanks!!
Hi Soraya,
Welcome to Mortgagefit discussion board.
As your brother-in-law's wife was also included on the title of the house, her signatures are required to transfer the ownership rights she is holding over in your name.
If the new deed is made with only your brother in law's signatures then it will result in transfer of interest he holds and his wife will remain on the title of the house.
Do let me now if you have any other questions.
Thanks
Blue
Welcome to Mortgagefit discussion board.
As your brother-in-law's wife was also included on the title of the house, her signatures are required to transfer the ownership rights she is holding over in your name.
If the new deed is made with only your brother in law's signatures then it will result in transfer of interest he holds and his wife will remain on the title of the house.
Do let me now if you have any other questions.
Thanks
Blue
Tax consequences may arise for your brother in law & his wife as they are transferring their property interest over to you.
Property transfer will be considered as a gift if the consideration you pay is less than present value of their share in house.
And they may have to pay applicable gift taxes if the allowed gift tax exemption limits are crossed. (Read more about tax implications from: http://www.mortgagefit.com/discuss/quitclaim-taximplications.html )
Miller
Property transfer will be considered as a gift if the consideration you pay is less than present value of their share in house.
And they may have to pay applicable gift taxes if the allowed gift tax exemption limits are crossed. (Read more about tax implications from: http://www.mortgagefit.com/discuss/quitclaim-taximplications.html )
Miller
"also should my brother in law's wife have signed the quickclaim deed?"
If your brother in law's wife has not signed the deed then she is still on the title of the house and you need to make a new deed to remove her name.
If your brother in law's wife has not signed the deed then she is still on the title of the house and you need to make a new deed to remove her name.
Hi Soraya,
After refinancing for the first time, your brother-in-law’s wife was also included in the property. Now, when your brother-in-law has signed the quitclaim deed to give the share of the house to you people, the property is transferred partially to you. His wife’s signature is equally important on the deed as she is still holding the title. And regarding the tax consequences, your brother-in-law and his wife may have to pay the gift tax on transferring the property to you, provided the tax exemption limits are crossed as said by Miller.
After refinancing for the first time, your brother-in-law’s wife was also included in the property. Now, when your brother-in-law has signed the quitclaim deed to give the share of the house to you people, the property is transferred partially to you. His wife’s signature is equally important on the deed as she is still holding the title. And regarding the tax consequences, your brother-in-law and his wife may have to pay the gift tax on transferring the property to you, provided the tax exemption limits are crossed as said by Miller.
hello soraya,
since your brother-in law's wife's name is also included in the property, she would have to sign a quit claim deed. you do not require any other form apart from the quit claim deed. but, you need to ensure that you have registered the deed.
as you are buying the property, hence you would have to pay the capital gains tax (cgt). as you are married couple and you are filing jointly, you are exempted of $500,000 of capital gains on the sale of real property.
for more information, do refer to the discussion related to capital gains tax exemption.
since your brother-in law's wife's name is also included in the property, she would have to sign a quit claim deed. you do not require any other form apart from the quit claim deed. but, you need to ensure that you have registered the deed.
as you are buying the property, hence you would have to pay the capital gains tax (cgt). as you are married couple and you are filing jointly, you are exempted of $500,000 of capital gains on the sale of real property.
for more information, do refer to the discussion related to capital gains tax exemption.