Legal Question in Real Estate Law in Florida
Homestead exemption
My parents reside in condominium in Broward County. Condominium was in their name originally. As of last year, my name is on mortgage and on deed solely and I reside in NY. My father wanted me to have it in my name as a wedding gift since I planned to move to Fla., but it did not happen. I had to pay an astronomical amount in property taxes since the property became mine since it was not my primary residence, whereas when it was in my parent's name, they paid a reasonable amount in property taxes. My question is: Could I just change the deed to my father's name and keep my name on mortgage, so that my father can claim homestead exemption and I can continue to pay mortgage, or does ''everything'' such as mortgage, deed, etc. have to be in his name in order to claim homestead exemption?
3 Answers from Attorneys
Re: Homestead exemption
If your aim is to allow your father to claim the homestead tax benefit, the simplest way is to grant him a life estate in the property. I suggest you seek the counsel of an atty who can aid you in accomplishing the transfer. If you need call me at 305.940.8080.
Re: Homestead exemption
Deeding the property to your father , coupled with his actual residence there is sufficient to allow for his claim of homestead. He can check with tax office to determine if it will be effective for this year. He must file for homestead before March 1st. No need to refinance or change any mortgage.
Re: Homestead exemption
as the property is located in FL, you need advise from a FL real estate attorney. be aware, however, that your mortgage probably contains a clause preventing you from transfereing ownership of the property without at least notifying the bank. the bank might require you to pay off the mortgage or have your father added on to it. this is because the transfer will impact the bank's lien. the mortgage secures the note and if you no longer own the property and default on the note, the bank will have a difficult time foreclosing the mortgage. banks do not like that.
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