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Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: YoungStache on December 24, 2018, 12:32:10 AM

Title: co-owner transfer to other co-owner
Post by: YoungStache on December 24, 2018, 12:32:10 AM
For capital purposes - my mother is helping me buy a property with both of our names on the deed for ownership. Afterwards, what is the best/easiest method for her to transfer her co-ownership to me? It would be in the state of PA. Would it be as easy as filling out another grant deed or special warranty deed we used for the original purchase, and notarizing it and sending it back to the title company? Anything to watch out for?
Title: Re: co-owner transfer to other co-owner
Post by: Car Jack on December 25, 2018, 07:25:11 AM
If you own the property outright, you're asking the right questions and it's particular to your own state.

If you have a mortgage, then you need to ask the mortgage holder.  Why is your mother on the deed?  Is she also on the mortgage note or a cosigner?  If she is, has your credit and income dramatically gone up since the purchase?  If not....and you needed your mother included to get the credit, why would you think you can swing it alone now?
Title: Re: co-owner transfer to other co-owner
Post by: waltworks on December 25, 2018, 08:25:29 AM
Yeah, if you needed her on the title to qualify to purchase the property (or to have enough money for the downpayment), you can't easily get her back off. If she didn't intend to be an owner but let you use her credit/cash to qualify, that's fraud.

-W

Title: Re: co-owner transfer to other co-owner
Post by: YoungStache on December 26, 2018, 07:08:38 PM
No mortgage, it would be an all-cash purchase


If you own the property outright, you're asking the right questions and it's particular to your own state.

If you have a mortgage, then you need to ask the mortgage holder.  Why is your mother on the deed?  Is she also on the mortgage note or a cosigner?  If she is, has your credit and income dramatically gone up since the purchase?  If not....and you needed your mother included to get the credit, why would you think you can swing it alone now?
Yeah, if you needed her on the title to qualify to purchase the property (or to have enough money for the downpayment), you can't easily get her back off. If she didn't intend to be an owner but let you use her credit/cash to qualify, that's fraud.

-W


Title: Re: co-owner transfer to other co-owner
Post by: tralfamadorian on December 26, 2018, 07:25:07 PM
PA has some of the highest transfer taxes in the country. In your shoes, I would be exploring whether this transaction would qualify and any ways to mitigate it (ex: if there is no mortgage, purchase with a LLC then she would give/sell her LLC shares to you in the future).
Title: Re: co-owner transfer to other co-owner
Post by: YoungStache on December 29, 2018, 07:09:04 PM
PA has some of the highest transfer taxes in the country. In your shoes, I would be exploring whether this transaction would qualify and any ways to mitigate it (ex: if there is no mortgage, purchase with a LLC then she would give/sell her LLC shares to you in the future).


Hmmmm. We actually did this in California back in 2014, when the co-signed for a mortgage with me, but had her name removed from the title afterwards. The real estate agent actual told us how to do it. The only difference this time is that there would be no mortgage or loan...