Posted on: 29th Mar, 2010 03:57 pm
I own 50% interrest of a property in a tenancy in common. Myself and my partner are both on the mortgage. He wants to sell (transfer) his interrest to me. We have discussed this with a title officer, and learned that a "grant deed" can be filed transferring full ownership (interest) in the property to me. i would like to keep the existing mortage. What ar the possible problems with this arrangement? We are not planning on notifying the lender as this is technically allowed under our note. Also, are their transfer taxes incurred?
Hi jasonj!
Welcome to forums!
As the property will be transferred from one person to another, there would be certain transfer taxes involved in it. While you record the deed, you will have to pay off the transfer fees. As far as I know, the mortgage should be in the name of the owner of the property. Thus, it will be better if you could inform your lender about the transfer of the property and refinance the loan.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As the property will be transferred from one person to another, there would be certain transfer taxes involved in it. While you record the deed, you will have to pay off the transfer fees. As far as I know, the mortgage should be in the name of the owner of the property. Thus, it will be better if you could inform your lender about the transfer of the property and refinance the loan.
Feel free to ask if you've further queries.
Sussane
thanks for you reply Susanne,
Unfortunately there is not enough capitol in the property to refinance at the current loan amount, and I am not able to pay down the loan. And last I tried the lender would not qualify me as the sole borrower. For this reason I am considering accepting the grant deed option from my partner and then I will take over the full payment on the current mortgage (without the knowlege of the lender). The notion is that in a year or two I would be able to re-finance or sell the entire property for at least what is owed.
I am curious to learn more about the transfer tax?
Unfortunately there is not enough capitol in the property to refinance at the current loan amount, and I am not able to pay down the loan. And last I tried the lender would not qualify me as the sole borrower. For this reason I am considering accepting the grant deed option from my partner and then I will take over the full payment on the current mortgage (without the knowlege of the lender). The notion is that in a year or two I would be able to re-finance or sell the entire property for at least what is owed.
I am curious to learn more about the transfer tax?
Hi JasonJ,
The transfer taxes may vary from one state to another. You can either contact your real estate attorney or the county recorder's office and get to know about the transfer taxes.
The transfer taxes may vary from one state to another. You can either contact your real estate attorney or the county recorder's office and get to know about the transfer taxes.