Posted on: 17th Feb, 2007 07:31 am
My father recently passed away leaving his house to my sister and I. My cousin wants to buy the house - but instead of going through normal process wants us to sign a quitclaim deed to him saying and he will pay us for the house - he says this will save him on closing costs. I don't understand this process -is it on the up-and-up or am I exposed here somehow?
yes a quit claim deed can be used to transfer the house in your cousin's name.
quit claim deed is one type of property transfer deeds.
to give the house to your cousin your as well as your sister's signatures will be required. in the deed both of you will be named as grantors and your cousin as grantee.
quit claim deed is one type of property transfer deeds.
to give the house to your cousin your as well as your sister's signatures will be required. in the deed both of you will be named as grantors and your cousin as grantee.
Hi
Welcome to Mortgagefit discussion board.
There are gift tax implications if you sell the house to your cousin for less than its actual value.
You can read how quit claim deed is used for property transfer and gift tax implication of quit claiming from this page - http://www.mortgagefit.com/discuss/quitclaim-taximplications.html
Thanks
Blue
Welcome to Mortgagefit discussion board.
There are gift tax implications if you sell the house to your cousin for less than its actual value.
You can read how quit claim deed is used for property transfer and gift tax implication of quit claiming from this page - http://www.mortgagefit.com/discuss/quitclaim-taximplications.html
Thanks
Blue
Actually - his offer is market value - no gift tax implications. Just can't understand why this method than a normal real estate sale
Hi Guest,
I think your cousin wants to avoid the costs of buying the house and that is why he does not want you to follow the usual selling process.
In general, when you sell a house, being the seller you too will have to pay certain costs adding up to 4-8% of the sale price. You may also have to pay the realtor, provided you go for one. This fee is the real estate commission which amounts to 4-6% of the sale price. Besides, the seller also has to pay taxes, transfer tax and property tax and other legal fees associated with the closing and finalizing of the home sale. Such fees add up to 2-4% of the home sale price.
Since you have to pay the above costs when you sell the house in the usual process, therefore you can give it a second thought as to whether you will sell in the usual process. You can sell by using a quitclaim deed and then get the amount from the cousin.
However, if you decide to use the quitclaim, do ask your cousin to state in writing that he will pay the price once you sign on the deed.
Thanks,
Caron.
I think your cousin wants to avoid the costs of buying the house and that is why he does not want you to follow the usual selling process.
In general, when you sell a house, being the seller you too will have to pay certain costs adding up to 4-8% of the sale price. You may also have to pay the realtor, provided you go for one. This fee is the real estate commission which amounts to 4-6% of the sale price. Besides, the seller also has to pay taxes, transfer tax and property tax and other legal fees associated with the closing and finalizing of the home sale. Such fees add up to 2-4% of the home sale price.
Since you have to pay the above costs when you sell the house in the usual process, therefore you can give it a second thought as to whether you will sell in the usual process. You can sell by using a quitclaim deed and then get the amount from the cousin.
However, if you decide to use the quitclaim, do ask your cousin to state in writing that he will pay the price once you sign on the deed.
Thanks,
Caron.
But Caron, don't you think that he can also release the deed only after receiving the amount from the buyer?
Yes Ryan, one can first of get the payment on the home sale from the buyer and then give him a copy of the deed. This ensures that the buyer gets the title to the property only after he has paid off the sale price in full.