TIC And A Quit Claim Deed
I just purchased a house at the courthouse steps. I have received the deed and it is in my name. I had to take on a partner for a 33% ownership. What is the easiest way to accomplish this? Is a TIC a separate document from the deed? Do I need to change the quit claim deed? Thank for your help!
You said 33% ownership.
You are technically then selling 1/3 of the property and need to transfer 1/3 of the title or show an undivided interest for 1/3. In any case you are talking a title transfer. Depending on where you are there could be taxes due on the transfer of title (PA for example).
As to the easiest way...
It depends on what you want to accomplish and how much you trust each other. He could be added as a lender, he could own part of the entity that owns the property if it is not in your name directly, he could get a lien on something else you own with a release provision that is based on this deal.
There are lots of possibilities. It depends on what you both want and how expectations might already be set. Some solutions will have costs associated and you should just assume that is the cost of you doing business. Unless you agreed to share such costs I would eat them from my side and expect to agree better terms in the future.
I strongly suggest you pick something that is really clean, easy to understand and water tight. One or both of you could die somehow and the people picking up the pieces need a way to figure out the final settlement. Also one or both of you could be sued for something totally unrelated. If the suit leaves the assets being transferred someone might have a new partner in this deal. Hence you want things to be very clear yet again.
Also it build a good track record for future deals with this investor or others.
On a positive note... Assuming you got a good deal on the purchase, WELL DONE!
John
[addsig]