When my in-laws had to move out of their expensive property tax state of NH to NC, my wife and I put in $25,000 and became part-owners of their house, and pay our percentage of all expenses (actually, much more). Now, they want to apply for a state program for exemption from part of their property taxes, and our ownership will make this more complicated.
My wife and I were thinking of getting off of their deed entirely. While we certainly do want our money back, we trust her family that when things are liquidated, that this will happen. And we know that many people will advise against this, but this is not our question. We are only looking for our principal back, nothing more. We will continue to pay our portion of all expenses, regardless.
My only real question is: what is the best way to get us off the deed? Is that a "quit claim"? Is that something that a lawyer must draw up, or can a title company do it?
Basically, I would love to hear from anyone who has done something similar.
DO get what you are doing written down in an agreement so your interest in the property outlives them.
If you get off now, you make sure you get your money NOW. They may not want to do that. I say pay the taxes, don't be penny-wise and pound-foolish.
The tax accountant can also discuss with you the capital gains tax ramifications of being on the Deed and when the time comes to inherit the house.... the value of the house as your basis could go back to the time when you all purchased that house, instead of the basis value of the date when you inherit the house.
Legal may want a title search done. The title company may in it’s own due diligence look to see if there are any clouds on the title existing. If so, you may need another private document between you and your free-spending dad as to responsibility on the clouds.
How title is currently held will make a difference as to just how the QCD has to read. So get your copy of the current paperwork to review. Like if it reads “Joint Tenants” or whatever. If you don’t have this, most courthouses have this stuff on-line available as a down-load for cheap. I’d pay for download of all the documents attached to the parcel so that everything is known.
Most places have it that Assessors office does a preliminary form before the QCD can be filed. Maybe a 2 page form with name of grantors & grantees, property details (parcel # & description and you better be fully current on taxes too); new ownership name and their physical address – they may need to provide ID too; some sort of tax information – this usually based on the last years tax assessor bill & if it’s not accurate than you better have a registered appraiser do this for you to get the tax exposure reduced. The tax info is needed as there is tax due on transfer. The old filed at the courthouse Deed on the property. Assessors office reviews and gives you a notary form (it may not be done that day either). You take this to the attorney or title company to do the new title and then they can file it for you or you walk it over. Best time at courthouse between 9 - 10:30 as court in session and the ladies who staff the offices still have a sense of humor - take an iD and dress nice but not expensively - most will guide you in how to do the forms.
There will be various fees for recording too (index fees, etc.) – personally I take cash when dealing with stuff like this @ the courthouse as most I deal with just hate checks (you have to wait 3 weeks for clearance on checks so that means 3 weeks to get things changed legally) and charge a % on CC. I would pay for duplicate copies too. Good luck and please post an update as to the results.
for the transfer tax costs, courthouse should be able to let you know the exact amount when they do the initial look through - you could take cash but if it's more than you want to carry get it as a cashier's check. Cash / cashier's checks means they can stamp, file, process right then. If you dealing with FIL who is not exactly the type to be counted on, you want it done right then and not allow 3 weeks for check to clear and FIL just goes and does something in the interim.
Thanks again to all who replied!
Bood