Posted on: 25th Apr, 2007 08:43 pm
my in-laws are getting the quit claim deed transfer of the property which we are making payments, but the property is under their name. what kind of problem can cause the delay or transfer? he recently got a home equity loan from the mortgage to purchase a business and that loan is also under the in-laws (his mom & dad) name. we are the one paying for the mortgage payment and the 2nd loan payment for the business. we wanted the mortgage and the business loan to be transfer under my husband name so that we can use it as a ride off for tax purposes, right to sell the property when we want to, etc.. will the quit claim deed affect the mortgage loan or will we need to refinance in order for the title be transfered? please advice....
thank you for your help
julia
thank you for your help
julia
Welcome Julia,
You need to refinance the loans in your husband's name and transfer the title to you and your husband. This is because the quitclaim deed can transfer title to property but not the loan. And, you cannot sell the home until and unless you are the legal owner.
You need to refinance the loans in your husband's name and transfer the title to you and your husband. This is because the quitclaim deed can transfer title to property but not the loan. And, you cannot sell the home until and unless you are the legal owner.
hi julia,
i have a couple of questions here. first of all, are you getting the property transferred from your in-laws to your husband? is there a delay in recording the deed at the county recorder's office?
it seems that the mortgage and the home equity both are in your in-laws' name. so, these have to be transferred to you. but a quitclaim deed will be insufficient for that. there should be some other legal process – novation as far as i remember, by which the lender can allow you to have the loans in your husband's name. but then he will obviously like to verify your husband's financial condition and credit history to find out whether he can afford to make payments at regular intervals on the both the loans.
take care
i have a couple of questions here. first of all, are you getting the property transferred from your in-laws to your husband? is there a delay in recording the deed at the county recorder's office?
it seems that the mortgage and the home equity both are in your in-laws' name. so, these have to be transferred to you. but a quitclaim deed will be insufficient for that. there should be some other legal process – novation as far as i remember, by which the lender can allow you to have the loans in your husband's name. but then he will obviously like to verify your husband's financial condition and credit history to find out whether he can afford to make payments at regular intervals on the both the loans.
take care
My grandmother would like to sell her vacation beach house to us because she no longer wants to deal with the upkeep and bills of the home. She doesn't have a lot of extra income and we were wondering if there was a way to avoid her having to pay capital gains tax when transfering a title within family?
Hi Kelly,
Welcome to the forum.
If the house was the primary residence of your grand mother she would have got exemptions on the capital gain tax up to $ 25000 but as this is a "vacation beach house" your grand mother can get exemption if she uses a 1031 Exchange or Starker Trust exchange. That means to avoid capital gain tax she can sell the property in exchange of another property.
Feel free to ask if you have any further questions.
Best of luck,
Larry
Welcome to the forum.
If the house was the primary residence of your grand mother she would have got exemptions on the capital gain tax up to $ 25000 but as this is a "vacation beach house" your grand mother can get exemption if she uses a 1031 Exchange or Starker Trust exchange. That means to avoid capital gain tax she can sell the property in exchange of another property.
Feel free to ask if you have any further questions.
Best of luck,
Larry
Hi Kelly,
There is an exemption limit for capital gains tax, but the limit is not $25000 but $250,000 for single filers. Check out for the capital gains tax exemption in detail.
As for avoiding the tax, your grandmother cannot go for 1031 Exchange because such a transaction occurs only for properties that are meant for business or investment, such as any rental property. So, ask your grandmother to check if she qualifies for the exemption.
Hope this helps...
God bless you.
Samantha
There is an exemption limit for capital gains tax, but the limit is not $25000 but $250,000 for single filers. Check out for the capital gains tax exemption in detail.
As for avoiding the tax, your grandmother cannot go for 1031 Exchange because such a transaction occurs only for properties that are meant for business or investment, such as any rental property. So, ask your grandmother to check if she qualifies for the exemption.
Hope this helps...
God bless you.
Samantha
