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"Adding or Transferring Someone To Your Title"
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Article:
"How To Add or Transferring Someone To Your Title"
By Andre Plessis
"Everything You Should Know About Adding or Transferring Someone To Your Title"
If you transfer all or part of your ownership to another person, you lose control of title ownership.
Legitimate reasons to amend your home’s title:
 | Adding your spouse or a family member to the title. |
| Selling your property. |
| You are borrowing against your home equity and you are required to amend your title to give the lender a security interest in your property. |
You could lose your rights if you add someone to your title under the following circumstances:
| Allowing someone to “hold” the deed temporarily. |
| Adding a person other than a spouse or child to the title can result in higher property taxes. |
| A deed holder can take out mortgages and loans, tear down your property or sell your property. |
| A deed transfer may trigger a full payment on your mortgage. |
There are different ways to transfer your property to another person. Each situation has a different legal consequences.
A Quitclaim Deed is similar to a Grant Deed in that it immediately transfers all of your interest, ownership and right in the property. A quitclaim deed can be used to remove someone from or add someone to the title to your home or other property you own. But a Quitclaim Deed does not include a promise that your ownership is good or free from other claims.
A Grant Deed immediately transfers all of your interest, ownership and right in the property. After signing a Grant Deed you have no further control over the property and if you are living on it, you become a tenant and can be kicked out by the new owner at any time. A Grant Deed contains a promise that your title and ownership of the property is free and clear, subject to the existing claims and liens that you disclose. If it later turns out that someone else has a claim of right against the property that you did not disclose, you could be liable for monetary damages and could be sued.
A Trust Deed is generally used when your property is security for the performance of an obligation that involves your home, like a mortgage or the repayment of a home equity loan. If you do not repay the loan, your home can be placed in foreclosure and sold at a public auction.
| TIP: The best way to hold title to real estate is usually in a revocable living trust. While you are alive you can buy, sell, refinance and manage your living-trust assets because you are the trustor, trustee and beneficiary. However, if you become incapacitated, such as with Alzheimer’s disease or a severe stroke, or after you pass on, your successor trustee takes over and manages or distributes your living-trust assets as instructed in your living trust. After you die, your living-trust assets are distributed without probate costs or delays, according to your living-trust instructions. Your heirs then receive a new stepped-up basis to market value on the date of your death.
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When you add another person to your property’s title, you are giving ownership rights and control over your home to that person. If you sign a deed giving all or part of your property to another person, that person will have enforceable ownership rights in the property.
If you transfer all or part of your ownership to another person, you lose complete control. That person can take out a loan on the property, remodel, or even sell the property and you can do nothing about it. Even if you transfer only a portion of your interest in the property to someone, that person will have absolute full control of his or her portion and may be able to force a sale of the property.
You might want a relative to have your property upon your death. You don’t need to add someone to your title just because you want that person to have the property when you die. If you intend for another person to have your property upon your death but you intend to keep it during your lifetime, you do not need to add the other person to your title at this point. You can transfer your home upon your death in your will.
Don’t agree to transfer title to your property even temporarily. At some point you may want to take out a loan on your property to make renovates or pay of credit cards to refinance your home at a better rate. Some dishonest broker or lender may ask you to sign a Grant Deed he or she can “hold” while they look for financing. Don’t do it! Once you sign the Deed, there is nothing to stop the scammer from selling your property or taking out a loan for him/ herself without your knowledge. The scammer may also refuse to transfer the property back to you or if they do, there may already be new liens against the property. When you need to take out a new loan, be sure you deal with a reputable company. Check your local yellow pages.
If you add any person who is not your spouse or your child to your title, your property taxes might increase. Under existing law, the tax assessor has the right to adjust the value of your property and increase your property taxes whenever there is a change in the ownership of your property. You could end up paying thousands of dollars more in property taxes each year.
Don’t add anyone to your title so that they can use your property as the collateral for getting a loan. If the person you add to your title fails to repay the loan or credit, you will be held fully responsible and your credit will be ruined and you may lose your property.
Do not sign a deed to your house unless you are willing to give up your property forever. If someone insists you to sign any paper regarding your title and you are not 100% sure what it is, the DO NOT SIGN until an attorney has reviewed the paperwork. Your home is your biggest asset, it is your retirement so please do not trust anyone.
Andre Plessis
Andre Plessis
"The Mortgage Guru"
"A Mortgage Professional
whose primary goal is to provide the expertise, guidance and skills necessary to
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