quick claim

Hi,

Welcome to Mortgagefit discussion board.
"My sister and I would like to quit claim the house back to her (want to undo the quit claim she did) as she has taken care of all payments, taxes. She is also wanting to sell her house and we don't want to have issues."
You can quit claim it back to her as currently it is in your name. After your mother gets it back she would be able to sell it but the mortgage will have to be paid off from the proceeds of the sale.

Let me know if you have any other doubts.

Thanks
Blue

My mom was diagnosed with terminal cancer in March of 2006. She signed her house over to me using a quick claim deed, it showed the amount I paid her as $10.00. We did this because she has no will and at that time we weren't sure she would live long enough to make one. The house is paid in full, it was built by my parents so we really don't know the "actual value" of the house, only the amount that was paid for the property it is on, and that was in the 1980's. My question is: I know you can "gift" up to $11,000 per year without paying taxes and as I understand it you can gift up to $1,000,000 in a lifetime without tax implications. What kind of taxes can my mom expect to pay for signing her house over to me, basically as a gift even though it showed $10.00 paid? We are really confused because we don't have a actual amount of what the house is worth because it was built by my parents and not purchased for a set price. Any help would be greatly appreciated. THANKS!

Hi Sassy,

How is your Mom now, really sorry to hear about her condition.
"We are really confused because we don't have a actual amount of what the house is worth because it was built by my parents and not purchased for a set price."
You can get an appraisal of the property done to know its present value. It will help you to get an estimate of whether your Mom will have to pay any tax or not.

David

Hi anonomous,

Welcome to forums.

Being a grantee if you and your sister are willing to quit claim the house to your mother, well that's fine.

The mortgage will not be affected as it is in her name only. So, she'll continue to make payments and she can even sell the house as she will have the ownership rights. But she needs to talk to the lender and clear all payments on the loan prior to selling the property.

Thanks,
James.

Hi Sassy,

Welcome to our forums.

Your mom will have to pay gift taxes as transfer of property through quit claim is regarded as gift. The gift tax will be based on the property value at the time of the gift less exemption allowed on gift tax.

In order to get the property value at the time when your mom transferred it as gift, she needs to contact the office of County Recorder or County Assessor.

The office maintains records of property value having a certain area in the each and every locality of a state. The officials there will be able to find out the value of the property.

Thanks,

Caron.

Just wanted to update I know it has been awhile and thanks for all the answers. My mom didn't end up owing anything on her taxes. Unfortunately she passed away on May 19, 2007. Thanks again all.

Hi Sassy,

I'm really sorry to hear about this. Let's wish that her soul rests in peace. And you too take care.