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View Full Version : What are the pitfalls of having an adult child's name on a house title?


nlr1
Dec 1, 2009, 03:05 PM
I put my 18 year old child's name on my house title, but not onto mortgage. If I sell a house will she be obligated to pay sales taxes?
What the pitfalls of having child's name on the title?

N.R.

J_9
Dec 1, 2009, 03:06 PM
Did she have your permission? If not, this can be a form of identity theft.

ScottGem
Dec 1, 2009, 03:13 PM
First, did you get the mortgage lender's approval to add the child? Most mortgages have a due on sale clause that allows the lender to call the loan if the property changes hands. By adding the child you could have triggered that clause.

You have made the child part owner of the property. If you sell the property, she gets half the proceeds and is responsible for half the capital gaons taxes upon sale.