Posted on: 17th Aug, 2007 10:07 am
I purchased a $209,000 home in 2006 with my fiance. He is on the title as a co-borrower. We are no longer together and I will be keeping the home. He will be signing a quitclaim deed and I will be refinancing the home and adding my parents as co-borrowers. The property was just appraised $217,000. He has now decided that he does not want to sign the deed because he wants half of the difference in equity. Am I right in my understanding that when he signs the deed, he has no rights to this equity? If I agree to pay him the $4,000 what is the best way to do that?
yes once he sighns quitclaim deed he has no rights to the property so you will recieve full ownership however i would bargain with him based on the fact that an appraisal is just an estimate and not a guaranteed value of the property. This means that if you were to sell it today you might not get the 217k for it and you would have to pay 6-7% to a realtor so effectively you would not be getting the 8k profit from the home. Perhaps 2k is a more real value of the contribution your fiance has made. As far as the best way to do that you could make up a contract that says that once the property is refinanced in your and your parents name and your ex is off the title you will pay the ex a certain sum of money. ( i would contact a real estate lawyer for proper way to do that or perhaps a title company that will transfer title have a form and/or suggestion on the wording of the contract.)
"Am I right in my understanding that when he signs the deed, he has no rights to this equity?"
After signing the deed he will not have any rights to the equity but if he does not get the assurance of getting his share he will not agree to sign. Like Evolovik said you need to contact an attorney and discuss how a proper contract should be made so that ownership transfer and equity division occurs correctly.
Miller
After signing the deed he will not have any rights to the equity but if he does not get the assurance of getting his share he will not agree to sign. Like Evolovik said you need to contact an attorney and discuss how a proper contract should be made so that ownership transfer and equity division occurs correctly.
Miller
"i would contact a real estate lawyer for proper way to do that or perhaps a title company that will transfer title have a form and/or suggestion on the wording of the contract"
Welcome Evolovik.
Yes you suggested the correct thing. It will be better for Cydneyp to contact a real estate lawyer and create a proper contract for transfer of title.
Welcome Evolovik.
Yes you suggested the correct thing. It will be better for Cydneyp to contact a real estate lawyer and create a proper contract for transfer of title.
since he's making such a big deal about 4 grand (gross not net!), i wonder if he might have some "baggage" of which you are not aware. remember any judgments, etc. he may have acquired while still in ownership could be his "gift" to you with the quit claim deed. you might consider have at least a limited lien search run before handing over any bucks.
Hi Cydneyp,
It seems that your ex fiancé will not transfer the property ownership by quitclaim unless he gets a share of the home equity. So before signing the deed, you must make a written agreement stating that you'll be paying him $4,000 as part of the equity on the property. In preparing the agreement, a property lawyer may guide you throughout the entire process.
It seems that your ex fiancé will not transfer the property ownership by quitclaim unless he gets a share of the home equity. So before signing the deed, you must make a written agreement stating that you'll be paying him $4,000 as part of the equity on the property. In preparing the agreement, a property lawyer may guide you throughout the entire process.