Legal Question in Real Estate Law in California
My mom has a property (apts) that she granted title to her brother-in-law many years ago. He has had a lien attached to the home since this time he held title. There is a loan (bal $50k) and the property is worth $250k. My Mom and uncle want to quit claim it to me and I will make the payments and be responsible for repairs and upkeep. Can title be transferred? Should it be done through quit claim? When the market picks back up, I plan to sell the property and pay off the liens. Can this be done? Any pitfalls?
1 Answer from Attorneys
Is the uncle the same as your brother-in-law? If so, the loan balance is probably due upon transfer of title, the property will be reassessed to present value by the tax assessor, your uncle will have to treat it as a sale and pay taxes, since it is a transfer between relatives unless you use the current fair market value it will not be considered a valid arm's length deal and the IRS will use its own figures as to values, it will not get a stepped up basis when the two of them die, none of you seems that knowledgeable about real estate matters, etc. If your uncle is not the brother-in-law, then your mother already transferred away her interests in the property and can not quit claim the property to you. Most attorneys agree that partners almost never should transfer real property to their children until they are dead.