Posted on: 06th Jun, 2008 09:34 pm
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?
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
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
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
Thanks, Virginia
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
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
Thank you for your help. Virginia
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! :D
Aj
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! :D
Aj
during my divorce ,he quitclaimed the house to me , my exs mother was cosigner and they wanted her name off and i need someone else to cosign, the bank redone the loan, causing me to lose 5yrs of payment around 15,000 was this fair for them to make me redo the loan after it was guitclaimed to me , could my cosigner just signed the original and save me that money thanks,
Hi cgoforth,
What I understand from what you've mentioned is you were given the title to the property, but the loan was in you and your ex's mother's name. Thus, when they quitclaimed the house they wanted you to refinance it in your name to remove her name from the loan. Right? Well. if this is the case then it is quite ok. This is what is done by people in these situations.
What I understand from what you've mentioned is you were given the title to the property, but the loan was in you and your ex's mother's name. Thus, when they quitclaimed the house they wanted you to refinance it in your name to remove her name from the loan. Right? Well. if this is the case then it is quite ok. This is what is done by people in these situations.
Home (no mortgage) currently deeded to wife and myself. I want my wife to have full ownership and my name removed. What is best instrument to properly accomplish this?
Hi notsavvy!
Welcome to forums!
You will have to sign a quit claim deed and transfer the property in your wife's name. Once you transfer the property to her, then your wife needs to record the deed at the county recorder's office.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You will have to sign a quit claim deed and transfer the property in your wife's name. Once you transfer the property to her, then your wife needs to record the deed at the county recorder's office.
Feel free to ask if you've further queries.
Sussane
Appreciate the fast reply.
Good info here.
Take good care.
Good info here.
Take good care.
I live with boyfriend and I pay mortgage. Want to add name to deed, do we need to refinance?
Welcome Rose,
You can ask your boyfriend to sign a quit claim deed and add your name to the property deed. You don't need to refinance in order to add your name to the property.
You can ask your boyfriend to sign a quit claim deed and add your name to the property deed. You don't need to refinance in order to add your name to the property.
I and my husband bought a house and my sister was a co-borrower. Now she wants to remove her name on title. She signed a grant deed. What a next step we should do? Do we have to pay the transfer tax? The bank allow us to remove co-borrower from title. Please help me with these question. Thank you and I do appreciate your times.
Hi Rose!
Welcome to forums!
You will have to pay the deed transfer taxes, doc stamp fees, etc. Also, as your sister was a co-borrower of the loan and has now removed her name from the property deed, the lender will ask you to refinance the loan in order to remove her from the mortgage.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You will have to pay the deed transfer taxes, doc stamp fees, etc. Also, as your sister was a co-borrower of the loan and has now removed her name from the property deed, the lender will ask you to refinance the loan in order to remove her from the mortgage.
Feel free to ask if you've further queries.
Sussane
Thank you very much sussane. yes, we also want to refinance to take our sister name out of the mortgage too. Do you know how many % we have to pay for the transfer tax?