Legal Question in Real Estate Law in Florida
Quit Claim to Wife
We own several rental properties with both names on title and mortgage. The money to buy came from my wife. For estate(inheritance) purposes for her 4 children, she wants me to Quit Claim the titles to her but my name would still be on the mortgages. I manage the properties and am entitled to 20% of the equity. I am on very good terms with her children. What are the legal ramifications of doing this?
2 Answers from Attorneys
Re: Quit Claim to Wife
Assuming in Florida.
I would not recommend without a will instrument to spell out share/ownership.
Your name remaining on mortgage is obligation, not a right.
Re: Quit Claim to Wife
It is very likely that the mortgage(s) have a "due on sale or transfer" clause that essentially says that if the property is transferred in any way (i.e., quit claim deed), then the entire principal amount of the note secured by the mortgage becomes due and payable to the mortgage holder. You should not take any action unless you first meet with your own attorney to make sure your interests are protected. If you are entitled to 20% of something, and you intend to transfer your interest to the property, you better get yourself a legally binding and enforceable agreement in place securing your 20%. Otherwise, if your wife dies and/or your relationship with one or more of your wife's children goes south (God forbid), you will have a problem. If you wish to discuss this matter, feel free to call my office. 305-424-0236.
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