Posted on: 21st Dec, 2007 06:05 pm
When originally acquiring coop property in 1986 we decided because of pending bankruptcy proceedings to put the ownership solely in my wife's name, although the mortgage loan (WAMU) was in both names. Throughout the last 20 years I, as husband, have made ALL the payments. Circumstances are now as such that we desire to change the ownership on the coop 'deed' from my wife's name to mine. My question is: How do we go about doing this, and what are the possible ramifications from the Mortgage lenders (WAMU) standpoint, or from a property 'sale' tax standpoint (if any). Please advise. Do I need a real estate lawyer?
hello woodbear,
welcome to the forums.
first and foremost, you should talk to your lender before you transfer the ownership from your wife's name to yours.
is your wife the primary borrower on the mortgage note? in that case, the lender might ask you to do a refinance in order to transfer the mortgage in your name. and if you fail to qualify for the mortgage then the lender may not give his consent for the transfer of ownership.
you may sign a quit claim deed to transfer the ownership of the coop. your wife has to sign the deed as the grantor with your name as the grantee, then the deed has to be notarized and recorded at the county recorder's office in order to make that valid.
but do not forget to talk to your lender before doing anything.
welcome to the forums.
first and foremost, you should talk to your lender before you transfer the ownership from your wife's name to yours.
is your wife the primary borrower on the mortgage note? in that case, the lender might ask you to do a refinance in order to transfer the mortgage in your name. and if you fail to qualify for the mortgage then the lender may not give his consent for the transfer of ownership.
you may sign a quit claim deed to transfer the ownership of the coop. your wife has to sign the deed as the grantor with your name as the grantee, then the deed has to be notarized and recorded at the county recorder's office in order to make that valid.
but do not forget to talk to your lender before doing anything.
Sorry... that was me above. Forgot to log in.
Hi Woodbear,
Sale tax is calculated on the purchase of certain goods and services and there is a fixed percentage at which the government charges the sale tax. This is in no way related to property transfer.
Now, if your wife conveys her interest in property to you which means you have only your name on the title after that, then you need not pay the tax. Rather your wife may have to pay the gift tax.
A transfer by quitclaim is treated as a gift because it's not a sale but the property is transferred in consideration of a certain amount of money lower than its value or with no money transfer at all.
In your situation, it's not a sale but a transfer of property over to you, so there's no need to worry about property transfer tax/gift tax or even capital gains tax which one usually requires to pay if he gains from the sale of property.
Hope this helps...
God bless you.
Samantha
Sale tax is calculated on the purchase of certain goods and services and there is a fixed percentage at which the government charges the sale tax. This is in no way related to property transfer.
Now, if your wife conveys her interest in property to you which means you have only your name on the title after that, then you need not pay the tax. Rather your wife may have to pay the gift tax.
A transfer by quitclaim is treated as a gift because it's not a sale but the property is transferred in consideration of a certain amount of money lower than its value or with no money transfer at all.
In your situation, it's not a sale but a transfer of property over to you, so there's no need to worry about property transfer tax/gift tax or even capital gains tax which one usually requires to pay if he gains from the sale of property.
Hope this helps...
God bless you.
Samantha
I would just add yourself to title if your wife is also on the mortgage. THe current lender will have a problem with your wife being removed from title.
You do have another option of putting yourself only on title but then you will want to refinance the mortgage into just your name. Rates are very low right now. A 30 year fixed rate mortgage is 5.50%.
You do have another option of putting yourself only on title but then you will want to refinance the mortgage into just your name. Rates are very low right now. A 30 year fixed rate mortgage is 5.50%.