Deeding A Property Vs. Selling
My brother and purchased an investment property together in July. We each put up identical amounts for the down payment, but the mortgage and title are in his name only (the lender does not know he used "borrowed funds" furnished by me). Now he (actually his wife) has decided he wants out. I can pull together the funds to buy him out, but here are my questions:
1. Is it better to have him deed the property to me than to go through a the selling process again? I know it would be up to the lender to agree to this as well, but what is better for me? I would rather NOT go through the selling process all over again, if simply his deeding the property guarantees me sole right of ownership. Seems so much easier.
2. If he does deed the property to me and he and his wife divorce (which they probably will within a few years), do I have to worry about their divorce settlements affecting me? If I am the sole name on the property title, am I untouchable by them? Bottom line -- I really want to be the sole owner -- I don't want his wife to be able to touch me or this property should they divorce.
Side note: I am starting an LLC, and plan to place this property in it, along with another property I own. Does this affect any of my above questions?
I appreciate any input. Thanks! 
Get him AND his wife to deed you the property. Any Real Estate attourney worth his fees should be able to do this for you.
This is really a question that you need to ask a local RE attorney about. State laws can vary greatly, but generally, if both sign over the deed, then it's your property and not theirs.
Note, by doing this, you will be basically doing a Sub2 deal. You might want to check out that forum for some more advice, too. And while it is unlikely that the lender will call the loan due (as long as you keep making the payments), it is possible (BTW, don't talk to the bank about this, just do it) and you need to be able to get another loan in place if necessary.
Roger
Thanks for the responses! The wife is not on the title and mortgage, so can I still have her be a part of the deeding or does it just need to be my brother since he is the sole owner/mortgagee? My brother bought the property without her knowledge, and now that's she's found out about our deal, she's making him back out. I feel she would easily agree to cosign the deed, just to make him get out of this deal, but is it necessary?
Sounds like you guys are saying if he/they do end up officially deeding the property to me, that they (meaning she!) can't touch it down the road, even if they divorce & split up assets. The way I see it, they're the ones at risk, if I default on loan (which I won't) but if they are willing to do this, it's good news for me, yes?
Since hiw wife is not on the deed, she doesn't need to sign.
However, since they are married, you may want to have her sign statement that basically says she acknowledges her husband is deeding this property to uyou, and she is giving her permission and giving up any marital rights she may have to the property as well. (The exact leagaleese would be similar to when an IRA benefeciary is someone other than your spouse)
Good Luck!
Thank you!
It vaies by state. In a common property state, such as NC, your wife WOULD need to sign the deed.
When you marry, everything you used to own is now owned by both of you, even when you never formally or legally state it so. In states like NC, she either needs to sign the deed, quitclaim the proeprty, or sign a power of attourney to have someone else do here dirty work for her.
IMHO, in Oregon, all you would need to do is have your bro sign over the deed to you, record it at the local courthouse and make your payments..taking over the property "subject to". The wife would have nothing to do with it if she is not in title now.
As you can see, every state will be different. Protect yourself, first. Talk to an attorney in your state who specializes in real estate. At the very least, talk to a real estate agent within your state about it.
Everyone here can give you advice but it won't be specific to your situation and it will only be an opinion. Seek professional help.
Roger