Legal Question in Real Estate Law in New Jersey

Re: Transfer of ownership

Your father would execute a Deed to you, which transfers ownership. Two problems to be aware of:

1) if there are any mortgage loans or other liens on the property, they may become immediately due and payable upon a transfer of ownership;

2) the tax consequences to yourself and your father may be extremely expensive.

You need to consult with an attorney and perhaps an accountant prior to doing anything. Please contact me, see below, or at 973-605-8995, if you wish to discuss retaining my services.

Re: Transfer of ownership

I concur with Bernard and Alan, but have several more questions. You do not say why the transfer is being made. Is it for convenience to avoid later probate, are you going to live there (either alone or with your father), is he refinancing and needs you as an additional security, or for some other reason? Is the transfer taking place as a possible divestiture of assets for Medicaid qualification purposes? Is your father going to continue to live there? These answers may have a bearing on what to do and how. You give no valuation information. How much is the house worth today? Are there any outstanding mortgages or is it owned free and clear? How much did your father pay for the house originally, and how much has he put in over the years to improve it? These answers may also impact on possible gift tax consequences of the transfer to you, and potential gains if ever sold (which may be different depending upon whether you will occupy it as your primary residence or just become a non-resident owner). Is your father retaining the right to live there? How old is he? This may also impact possible gift taxes and/or taxable gains on resale. So, while the simple answer is all you need is a new Deed putting your name on it, there are probably many more items that should be resolved before the new Deed is prepared and recorded. I suggest you contact me directly, or a local accountant or tax attorney, once you answer these questions, because the simple answer does not cover a greater range of information you should have before you act.

Re: Transfer of ownership

You need to bring a copy of your father's deed to an attorney and ask that it be done. It will then be signed by your father and recorded with the county clerk. It should cost about $300. However, there may be some tax consequences you should be aware of before doing it.Either speak to a real estate attorney of accountant before going ahead. If I can help, please call. Good luck.

Bernard Berkowitz

973-808-2003