Posted on: 30th Mar, 2010 11:44 am
My partner and I have been together for 12 years and we are Registered Domestic Partners in California (sounds fancy, huh?). We're buying our first home and just got the signed offer this week and everything's moving into full gear. The mortgage is pre-approved solely on my partners credit and I need to be included on the Title/Deed but am unsure as to how best to do this.
We asked our lender who said that we should do it AFTER the fact (easier for him), but I'm worried about federal gift taxes and other complications. We're covered under state inheritance laws nice and clean but NOT federally. My agent said that we can definitely address it during Escrow.
I would appreciate any advice you guys might have. I believe we want to do Community Property with Rights of Survivorship which si what we'll request from the escrow company (?). Anything else we should do or avoid? Has anyone else dealt with situations like this before?
Jim
We asked our lender who said that we should do it AFTER the fact (easier for him), but I'm worried about federal gift taxes and other complications. We're covered under state inheritance laws nice and clean but NOT federally. My agent said that we can definitely address it during Escrow.
I would appreciate any advice you guys might have. I believe we want to do Community Property with Rights of Survivorship which si what we'll request from the escrow company (?). Anything else we should do or avoid? Has anyone else dealt with situations like this before?
Jim
welcome urrgghh,
you can add your name to the property deed with the help of a quit claim deed. you can contact an attorney who will help you in drafting the quit claim deed and will also help both of you in filling it out. he will also help you in adding the right to survivorship clause in the property deed.
you can add your name to the property deed with the help of a quit claim deed. you can contact an attorney who will help you in drafting the quit claim deed and will also help both of you in filling it out. he will also help you in adding the right to survivorship clause in the property deed.
When someone has a mortgage on a property, it is not proper to quitclaim deed anyone else on to the deed after closing. The mortgage documents have clauses in them which state that if any change in title, the existing loan can be called due in full. You do not want that to happen.
The lender who says it is easier for him is not thinking of you and is advising you to do something that is not proper. Easier for him???? How difficult is it for a loan officer to put another name on the application?? Ridiculous. Actually, if your name is only on title, you are not even on the application (other than to note you are on title)
There are reasons you should not be on the mortgage and/or title sometimes. If you have low credit scores, that would make the rate higher. If you have any colectoions or judgments against you, you may not be on title until those are paid off. You are in a community property state and perhaps may not have some of those things anyway.
If you are fine as far as credit scores and simply have no income contributing to the purchase mortgage, you should be on the mortgage now, before closing, no question.
Not only should you be on title, you should be on the mortgage also unless low credit scores. There is no reason your credit history should not also benefit fro a mortgage being paid on time.
The lender who says it is easier for him is not thinking of you and is advising you to do something that is not proper. Easier for him???? How difficult is it for a loan officer to put another name on the application?? Ridiculous. Actually, if your name is only on title, you are not even on the application (other than to note you are on title)
There are reasons you should not be on the mortgage and/or title sometimes. If you have low credit scores, that would make the rate higher. If you have any colectoions or judgments against you, you may not be on title until those are paid off. You are in a community property state and perhaps may not have some of those things anyway.
If you are fine as far as credit scores and simply have no income contributing to the purchase mortgage, you should be on the mortgage now, before closing, no question.
Not only should you be on title, you should be on the mortgage also unless low credit scores. There is no reason your credit history should not also benefit fro a mortgage being paid on time.
presumably, you will be finding for yourselves a gay lawyer as well; someone who would, you'd hope, have specific information concerning the rights and responsibilities of two unmarried people owning property.
i believe you'd want to set up the title as "joint tenants with the right of survivorship" in order to protect yourselves as a couple in the event of the demise of one of you. i understand that california is a community property state, but you would clearly need to determine that a gay relationship is tantamount to a marital relationship as far as that goes. it would occur to me that it might be a stretch to assume that, so you need to carefully check it out. obviously, you're on the right path with the survivorship.
i am not a lawyer, nor do i have any legal background. therefore, i think you're best-served by retaining an attorney who would be familiar with same-sex couples and financial transactions, such as the purchase of your home. undoubtedly they are out there, and i hope you can find one to suit your needs.
i am in complete agreement with john's stance on your loan officer. the laziness evident in it being "easier for him" is atrocious. if you weren't so far into the transaction, i'd suggest you dump the guy and find yourselves another, but if you can at least twist his wrist to get him to work with you, it'll all work out.
i believe you'd want to set up the title as "joint tenants with the right of survivorship" in order to protect yourselves as a couple in the event of the demise of one of you. i understand that california is a community property state, but you would clearly need to determine that a gay relationship is tantamount to a marital relationship as far as that goes. it would occur to me that it might be a stretch to assume that, so you need to carefully check it out. obviously, you're on the right path with the survivorship.
i am not a lawyer, nor do i have any legal background. therefore, i think you're best-served by retaining an attorney who would be familiar with same-sex couples and financial transactions, such as the purchase of your home. undoubtedly they are out there, and i hope you can find one to suit your needs.
i am in complete agreement with john's stance on your loan officer. the laziness evident in it being "easier for him" is atrocious. if you weren't so far into the transaction, i'd suggest you dump the guy and find yourselves another, but if you can at least twist his wrist to get him to work with you, it'll all work out.
oh yeah...john is right on with his discussion of quit-claiming also. that's another reason for you to look askance on the advice of your loan officer, too.