Legal Question in Real Estate Law in California

Transfer ownership

In Oct 2006, my sister purchased a property (on my behalf because I had no credit history). I pay the mortgage and property taxes for the house and even claimed it on my FY07 tax returns. An IRS agent advised me to at least get my name on the title of the property. How do I go about getting this done?

Ideally, I would also like to legally assume full ownership (title and loan). What is the best way to achieve this?

I have decent credit now. Also keep in mind that the house value has tanked significantly since 2006.

Any advice will be appreciated.

Thanks.


Asked on 2/25/09, 3:37 pm

2 Answers from Attorneys
George Shers Law Offices of Georges H. Shers

Re: Transfer ownership

There are many factors you need to look at. If your sister sold the house to you she could take a large capital gains loss as an offset to her other income, the property taxes might go down to the sales price, you do not need to get a title report for the sale itself, you how could legally deduct your interest payments and taxes on the property. But first you have to find out if you can get a loan for the house, how much you will need to put down, etc. Your sister quit claiming the property to you is the fastest but that results in your assuming a loan based upon the old value, the lender might not allow you to assume the loan, and probably no significant tax advantages. So do not rush into it.

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Answered on 2/25/09, 5:14 pm
Terry A. Nelson Nelson & Lawless

Re: Transfer ownership

Your sister can quitclaim the property to you if all you want is your name sole on title. That has nothing to do with the loan obligation; she remains on that regardless, unless the lender is willing to transfer the loan to you. Call them.

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Answered on 2/25/09, 5:59 pm


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