Posted on: 15th Jul, 2009 05:50 pm
My parents want to sign off deed to my brother. All of their names are on the deed as well as mortgage. My brother is 1st borrower and my parents are co-borrower. Can my parents deed to my brother without removing their names on the mortgage now? What is the tax implication on both grantor and grantee if there is some monetary exchange?
hi pekko!
welcome to forums!
your parents can remove their name from the property deed by signing a quitclaim deed. but there are chances that the lender would ask your brother to refinance the property immediately. if your parents are transferring the property as a gift to your brother, then they would be liable to pay the gift tax.
feel free to ask if you've further queries.
sussane
welcome to forums!
your parents can remove their name from the property deed by signing a quitclaim deed. but there are chances that the lender would ask your brother to refinance the property immediately. if your parents are transferring the property as a gift to your brother, then they would be liable to pay the gift tax.
feel free to ask if you've further queries.
sussane
pekko,
welcome to the forum.
it will be necessary that before quitclaiming documents you need to refinance the mortgage on your name alone.If there is any monetary transaction then you need to pay the taxes.even if there is a 'gift' still you need to pay the gift taxes.
keep in touch........
:arrow: :arrow: :arrow:
welcome to the forum.
it will be necessary that before quitclaiming documents you need to refinance the mortgage on your name alone.If there is any monetary transaction then you need to pay the taxes.even if there is a 'gift' still you need to pay the gift taxes.
keep in touch........
:arrow: :arrow: :arrow:
What if my parents have no intention of removing their names on the mortgage. Does the lender still need my brother to refinance?