Questions About Quitclaim
I have a situation that I am trying to get out of, and my accountant stated that I should quitclaim the property in question.
Situation: My father recently gave me $28000 to purchase a mobile home that he wanted to move into. At the time, he was trying to hide these monies from his wife whom he was in the midst of a divorce with. However, the divorce is over, and the lawyers and all involved know about this money, therefore it is in the open and is not a problem.
The problem is that I no longer want to own this house due to family issues. The home is in my name, as well as the loan, that is a little over 40,000. My father and I share a bank account from which he adds funds so that he can pay the mortgage. I have given him power of attorney to take care of the matters with this property.
My father is claiming that he will pay off the property within the next few months. Whether or not he pays it off, I want to know how I should go about putting the loan into his name, as well as the deed without having to personally pay a ton of taxes on this property.
My accountant mentioned quitclaiming the property, but I am not familiar with this. Any help would be much appreciated. Thank you.
You can quit claim the deed to your father (any family member) and avoid the transfer tax and any fees other than the recording of the deed. That would get your name off the deed, but not the financing.
I agree with the previous poster with one exception: A Q/C will inevitably trigger the "due on asale" clause in your loan, now causing you financial problems i.e. possible accelleration of the lloan.
You could QC to a land trust controlled by your father though. You would still be responsible for the loan. The only other way is to have him refinance into his name which should not be a problem now that the divorce is final.