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gorginena
Sep 18, 2006, 11:16 AM
We live in Texas and I recently married and we are trying to change the deed currently on file. My husband and his mom are on the deed to the property we are living on. This property is fully paid for so there is no lien on it. Which deed would be the correct one to use to take off his mom's name and add mine with his name already in there? There are no disputes and she is willing to sign over to me. I was told to use the warranty deed, and told by others to use the quitclaim deed. Any help would be appreciated. :)
Thanks.

ScottGem
Sep 18, 2006, 12:14 PM
Did you ask the county clerk? There is another consideration here as to tax consequnces. Essentially your mother-in-law if gifting her share of the property to you. So gift taxes apply. I would consult a CPA as well as a real estate attorney.

Cvillecpm
Sep 18, 2006, 12:29 PM
Whoever holds title NOW can execute a "gift" quit claim deed to who the new owners will be.

GIFT deed incurs no tax penalty.

ScottGem
Sep 18, 2006, 12:44 PM
Whoever holds title NOW can execute a "gift" quit claim deed to who the new owners will be.

GIFT deed incurs no tax penalty.

I thought the quit claim deed the more likely.

But not sure what you mean by no tax penalty. I'm not talking about a tax penalty, but a tax libility. There are taxes incurred when one gifts property as far as I know. There is an exclusion of $10K per person.

Dr D
Sep 18, 2006, 02:11 PM
Check with your county clerk. Some jurisdictions would require your husband and his mom to deed the property to a third party (straw party), and then the straw party would deed the property back to you and your husband. Both deeds are recorded at the same time. If a straw party is required, make sure they have no tax liens etc. that could attach to the property in the brief instant that they own it. Other places do not require the straw party. I think that a Quit Claim Deed is usually used for such a conveyance. I suppose that a Warranty Deed could also be used.

Fr_Chuck
Sep 18, 2006, 02:52 PM
First not all states honor the same type of deed, some places use titles instead of deed and 10 states even have some older French systen that is still allowed to be used.

So first what type of deed is on the properly currently, but normally it should be as simple as his mother and your husband, signing a quick claim deed to hisself and you.

Cvillecpm
Sep 19, 2006, 05:46 AM
Quit claim deed just gives the new title holders the same rights, title and interest in the property as the GRANTORS have.

There is no tax liability - meaning no conveyance tax if it is a "gift" - the real property tax stays the same and there is no income/personal tax liability on ACCEPTING real estate - only on the SALE.

gorginena
Sep 19, 2006, 07:56 AM
Thank you everyone for your help. I didn't realize how much is involved in this process.