Comments on: Property Deeds, Legal Stuff, Ugh

Question: Property Deeds, Legal Stuff, Ugh

benjh — Thu, 25 Aug 2005 08:54:54 -0800

What is the best way to change a property deed?

I have a home that is in mine and a friend's name. The friend is moving out, and my partner and I will be taking full ownership of the home.

I called the title agency that closed on the house, and after totaling the fees, decided to look around.

After a while, I found references to a Quit Claim Deed. Has anyone ever filed one of these, and is this my best bet for doing this. My name will continue to be on the deed, only the second name will be changed on the deed.

By: Corky

Corky — Thu, 25 Aug 2005 09:04:43 -0800

Yes, I have used a Quit Claim deed. My ex S.O. and I owned a house together. I left him, gave him the house. I signed a Quit Claim deed releasing all of my interests in the property. He had to refinance the house in his name alone, though, since the mortgage was in both our names. Luckily, his credit was good enough so that he could pull that off. The mortgage company required the Quit Claim Deed to be notarized, but armed with that, he was able to get me off the mortgage, and the new title in his name only.

By: Corky

Corky — Thu, 25 Aug 2005 09:06:25 -0800

The mortgage company wouldn't allow him to just take my name off the title using the QCD, since I was also on the mortgage. Thus, the refi.

By: spacewrench

spacewrench — Thu, 25 Aug 2005 11:26:40 -0800

Call a real estate attorney for the best advice. I suspect a better course would be for you and your friend to transfer ("sell") the home to you and your partner, just as you'd normally sell the home to somebody else. If you don't own it free & clear, you'll have to involve the mortgage company in the deal. If you do, it should be relatively simple to execute and record a grant deed where you & friend grant the property to you & partner.
I think a quitclaim is slightly less common to find in a chain of title, and more likely to raise eyebrows, particularly if it's not there for the standard divorce reason Corky mentions. It may have a small negative effect on the marketability and/or price of the property.
Either way, hire a real estate attorney. It'll either be simple and cost only an hour or two, or be complex and really really worth having done correctly.

By: benjh

benjh — Thu, 25 Aug 2005 12:21:18 -0800

The good thing is that the mortgage is solely in my name, and not in his.

By: spacewrench

spacewrench — Thu, 25 Aug 2005 12:54:47 -0800

In that case, a quitclaim might be quick & easy, though your partner wouldn't have any interest of record. Maybe your friend could grant his interest to your partner? The details depend on exactly how you and your friend are listed on the current deed: joint tenants, tenants-in-common, etc.

Really, it's worth contacting a real estate attorney in your state. Property law is full of quirks, and it's important to dot the is and cross the ts. You can probably get by without the services of a title/escrow company, though.

By: MrZero

MrZero — Thu, 25 Aug 2005 12:57:14 -0800

Get thee to a lawyer specializing in real estate, post haste.

When you decide to sell this house, you don't wany any problems with the title. Although it may seem like an unnecessary expense now, having a proper and supervised transaction in the chain of title will save you money and headaches when you decide to sell.

Also, a single attorney can represent both you and your friend. However, the attorney should give you both full disclosure as to what this entails, and make you both sign off on a document that explains such details. If there is no money changing hands here, everything should go fine. If your friend is selling an interest in the house to you, then you should get separate lawyers, however.

By: 3rings

3rings — Thu, 25 Aug 2005 19:32:17 -0800

I hesitate to say that it is universally foolish to give or take informations about legal matters on Mefi, because Mefites seem to be discerning and capable. Still . . .

This link is to a registry of deeds FAQ for Barnstable County Massachussetts. It explains what's going on when property is transfered by recording the transfer at a registry of deeds or a recorders office. It made sense to me (and it says, over and over, "talk to a lawyer").

As far as quitclaim deeds go -- deeds come in different flavors. Some say, "I do own this property and hereby give it to you." Quitclaim deeds say, "I may or may not own some rights to this property, but whatever rights I have I hereby give to you." So, I could record a quitclaim deed giving you Trump Taj Mahal and Donald Trump would be wholly unaffected because I have no rights to Taj Mahal to give. About.com seems to agree with me, but they have their own disclaimer.

The services of a title company can be expensive because title searches involve sending people to the recorders office where they pore over electronic and paper records to make sure that someone hasn't already given away the property you're now trying to sell. Its painstaking work and they often have expensive title insurance in case they screw it up. You should be able to find a lawyer who will briefly consult with you for nothing (initially!), and explain clearly why you may or may not want to pay for such a service in your jurisdiction. Call a few up on the phone and say you need to talk about whether you need to hire him or her .

Everyone ought to meet with and get to know a lawyer anyway, because they're best when you give them a chance to help you think ahead. Plus, then you'll have a name in your head when tossed in the hoosegow.