[newtolaw]

My fiancé and I are buying a house in California. He is the only one on the Mortgage loan but we are splitting down payment, closing cost, mortgage payments, property tax etc.

The lender did not add me to the title of the house, he told me that I could be added to the title after closing, and it would be easy. "Just go to recorder's office fill in a grant deed and voila, you are half-owner."

Not so as it turns out - the fees based on transfer tax, city property tax, etc amount to $6000. I do not have $6000.

An exemption of these fees would be if 1/2 ownership of the house was a gift, from my fiancé, who is the owner now.

But that would mean that even bigger gift tax would be paid when we file our taxes. I believe he would have to pay the gift tax to IRS.

The clerk at recorder's office subjected to pay only recording fees about $500, and skip the city property tax fees which make up for the huge amount.

Is this an option or would I get a letter from the city wanting its property taxes afterwards.

We cannot get married until October of 2008.

What should I do to be added to the title without paying the $6000? What are my options?

My fiancé asks why it is so difficult to add another person to the title of your own house.

Plese help with suggestions and advice.



Thank you!

[Fr_Chuck]

First I have to say , read about the 1000 posts on here about non married couples who end up stuck on mortages and the such.

I would not get into the house as part owner until you are married, so that you are protected though divorce court later if you split up before you are married.

Also you need to even check with the mortgage company, many mortages have a clause if the ownership on the deed is changed, the entire loan becomes due and payable. Remember the mortgage is for the entire home, so if they foreclose latter they have to foreclsose the entire home.
So if 1/2 ownership is given away, does that effect the rights to foreclose on the entire ownership.

So you need to sit down with your real estate attorney and find what is the best way to process

[newtolaw]

Thank you.

You are giving me something to think about. The lender at the bank, whom I talked to about that, did not mention anything about change in mortgage if I am added to the title. In fact he said "people do it all the time". He however, did not say anything about the $6000 in fees either…
I will call him again.

In your opinion, since I am financially invested in the purchase of the house
(50% of closing fees and down payment) and I'd be paying part of the mortgage, should I not try to be added to the title right away?

What is the difference between a title and a deed by the way?

Thanks.

[twinkiedooter]

The deed is recorded by the Recorder's office and is considered a real estate deed showing legal ownership of the piece of property with or without a house on it.

[newtolaw]

Twink,

Thanks for the clarification.

New