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Are taxes due after a Quick Claim is done?

Posted on: 06th Jan, 2009 03:11 pm
My fiancee and I bought a House X in August 2008. Both of our names are on the title & deed, but only my name is listed on the mortgage documents.

A few years ago, she signed her named to House Y that her mother wanted to buy. My fiancee is the only person listed on the deed for House Y, which has received pre-foreclosure notices because her mother had been unable to keep up with the payments.
We are working with a Realtor to prepare that house for a short sale and was advised that her name should be immediately taken off the deed for House X, in case the House Y's mortgage company says that she should liquidate House X in order to pay for House Y's payment.

Is it true that a Quick Claim is a good route to take to get her name off of the deed for House X? Also, will there be any sort of transfer tax that needs to be paid? If yes, what is the rate and how much would have to be paid? Both houses are located average in price and are located in NJ.
Hi monalucy!

Welcome to forums!

Yes, a quitclaim deed can be used to remove your fiance's name from the property deed of house X. When there is a transfer of ownership from one person to another, transfer taxes and doc stamp fees are levied. As far as I know they vary between $.70 per $100.00 of the sale price. You can check with the county recorder to know the right amount.

But as the House Y has already received the pre-foreclosure notice, if there is a transfer of ownership now, the lender may consider this fraudulent and may penalize your fiance. Your fiance should better consult an attorney before signing the deed.

Feel free to ask if you have further queries.

Sussane
Posted on: 06th Jan, 2009 08:57 pm
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