You should call a local title company, make an appointment to get the deed transferred to the one that will own the house. Tell the title company what you want to do. The title company will normally charge a fee for their services. You might ask, when you call of the cost for their service.
After all have signed the proper deed the title company will then ensure that the deed is properly recorded at the county recorders office the property is located in.
The title company will ensure that all local state and federal laws have been done according to the laws of each.
Utilizing a title company could prevent possible legal problems in the future.
Please use a title company not an attorney or notary for this transaction. An attorney nor notary can guarantee a title to any property, as a title company is able to do..
Though a quit claim deed is legal, once signed, notarized and recorded in the county where the property is located, this might be challenged in court when and if the property changes hands again or if you would want to refinance the property.
If there is a mortgage on the property make sure you pay the mortgage on time and in the amount? required. You need not inform the mortgage company of any change in ownership.
Even though your parents would no longer have ownership of he property and no say in what might be done to the property if for some reason you would want to sell or refinance the house. Your parents would still be on the mortgage loan.
If for some reason, you miss or fail to pay the monthly payments, this non payment would be reflected on their credit report. A foreclosure would also be listed on their credit report since you are changing ownership and not assuming the mortgage loan.
Title companies transfer ownership of properties many times, where there is a current mortgage on the property. Title companies are licensed by the state insurance commissioner. They are not gonna do anything illegal where they would put their license in jeopardy.
For any tax or legal matters, you should consult with your tax consultant or attorney.
I hope this has been of some benefit to you, good luck.
"FIGHT ON"
you can't do anything with the mortgage unless someone of you refinances in his name
as for title change this can be done with the county with a quit claim deed, remove names not wanted and keep or change to those that are
this will put the property on the tax rolls to the new names but only for county tax purposes
If your parent's are on the mortgage, even if you have been paying, it's STUPID for them to walk away from the title. No way would I allow my parent's to do this.
- Either re-finance the property so it is in your name only.
- Or they stay on titled on the property.
Yes, you have to re-finance to get their names off the mortgage.
Add'l info: It is NOT beneficial for your parent's to be signed off the title if they are still on the mortgage. Right now they are part owners in the house and they are responsible for paying for the if you don't.
Taking them off the title means they are responsible for paying the mortgage if you don't BUT they don't own the house - so they could end up paying for something they don't own.
If in the US they cannot remove their names from title if they are on the mortgage loan. This would cause what's called the "due on sale clause" meaning the mortgage company immediately starts foreclosure proceedings. Read the deed of trust or mortgage docs from when they closed. All loans in the US have this clause.
To Add to the question, I alone have been paying for the mortgage. So technically my parents can walk away from the mortgage without any restrain. Does that mean we will have to refinance to get their names off the mortgage?
a quit claim deed from the 3 of you to just you will change title.
Warning check the mortgage for a due on sale clause.
They can NOT remove their names as long as they are still paying on the mortgage.
The lender will have the last say on what occurs. If they are committed to a loan they can't just walk away from it. If they stop paying the lender is entitled to call in the loan and/or repossess the property.
They cannot transfer the mortgage. If their names are on the mortgage then it needs to be paid off in order to take their names off.
The fact that you have been making payments is irrelevant.
My parents are retiring soon and they want to have their names removed from the house title, on which currently has all three of our names. There is also a mortgage on the house.
It appears that is some kind of taxes (property tax?) that my parents will have to pay when they remove their names from the title. So is there a difference between removing their ownership and transferring their ownership to me, both on the home title and the mortgage? Is there still taxe involved if they "grant" the ownership to me? I'm not sure how it works exactly and would love to get some insights before talking to the mortgage people. Are there more advantages if we hire a lawyer to handle all of these things for us?
Thanks so much!
