Posted on: 10th Feb, 2009 09:26 am
My parents want to transfer deed to my sister and I. The problem is that my parents owner financed this house. The seller does not have a mortgage on this house. Can my parents do a warranty deed to us even though they don't own the house yet? The seller has a warranty deed with vendor's lien on the property.
Hi bnorris,
A Warranty deed is used to transfer property which is clear and free of any lien. But since you say the property has a lien on it, I think using a Quitclaim deed would be a better option. A quitclaim deed can help an individual convey his/her share in the property to another person without the guarantee that he/she is the actual owner of the property and whether the property has any lien on it. You can refer to a previous discussion on this topic in the following link:
http://www.mortgagefit.com/deed/quitclaim-warranty.html#38958
A Warranty deed is used to transfer property which is clear and free of any lien. But since you say the property has a lien on it, I think using a Quitclaim deed would be a better option. A quitclaim deed can help an individual convey his/her share in the property to another person without the guarantee that he/she is the actual owner of the property and whether the property has any lien on it. You can refer to a previous discussion on this topic in the following link:
http://www.mortgagefit.com/deed/quitclaim-warranty.html#38958
if we (my sister and i) file at quit claim deed would the insurance and taxes be put in our names instead of our parents?
also, we want to do some home improvements to the house. would we be able to apply for a home equity loan once the quit claim is filed with county?
also, we want to do some home improvements to the house. would we be able to apply for a home equity loan once the quit claim is filed with county?
Hi bnorris,
Once the property is quitclaimed to you, you become its owner and thus become legally and financially responsible for it and have to pay taxes. I think you'll be able to apply for a home equity loan. But it's completely at the lender's discretion whether they'd approve it. However, this is not a legal advice and consulting a legal expert in this regard would be a good option.
Once the property is quitclaimed to you, you become its owner and thus become legally and financially responsible for it and have to pay taxes. I think you'll be able to apply for a home equity loan. But it's completely at the lender's discretion whether they'd approve it. However, this is not a legal advice and consulting a legal expert in this regard would be a good option.