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socrateaser
socrateaser, Attorney
Category: CA Real Estate
Satisfied Customers: 37952
Experience:  Attorney and Real Estate Broker
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Married daughter will cosign (only daughter will cosign no

Customer Question

Married daughter will cosign (only daughter will cosign no son in law) a loan to buy a property with mother. So mother can qualify for the loan. Mother to protect herself against future probably daughter divorce or daughter claim will ask daughter and
son in law to sign a notarized quitclaim deed and a contract indicating " daughter is only being a cosigner but do not have any ownership now and in the future on subject property". Two questions I) Such notarized a) contract and b) quitclaim with be valid
in case of a divorce so son in law neither daughter will have any claim against subject property and II) does quitclaim deed and contract need to be registered at public records to be valid? or can mother keep in safe box in case needed in the future?
Submitted: 1 year ago.
Category: CA Real Estate
Expert:  LegalKnowledge replied 1 year ago.

Good morning. Being on the loan, does not give a party a legal right or interest in the property itself. It only makes them liable to pay and allows the lender to go after them, in the event that the loan is not paid. The way in which title to the home is held, is what would give someone a legal right and interest. As such, she can co-sign on the loan but title can be held solely in your name, eliminating this problem or any concern which you may have, that he could take a legal interest in it

Expert:  LegalKnowledge replied 1 year ago.
I just wanted to follow up and see if you had any other questions or needed me to clarify something. I am here to help, so please let me know. Thanks!
Customer: replied 1 year ago.
With all respect you are not answering my question you are answering a different question. On title it will show mother and daughter joint ownership before the loan is funded. Please re read the question.
Expert:  LegalKnowledge replied 1 year ago.
I am going to opt out and allow another expert to respond. Please hold.
Customer: replied 1 year ago.
Thanks
Expert:  socrateaser replied 1 year ago.

Hello,

I am a member of the State Bar of California, the U.S. District Court for the Central District of California, and a licensed California real estate broker. Please permit me to assist. You asked:

I) Such notarized a) contract and b) quitclaim with be valid in case of a divorce so son in law neither daughter will have any claim against subject property?

A: If daughter quitclaims her interest in the property to mother, after the loan is funded, then daughter will remain liable for the loan, but will have no legal interest in the property -- because the quitclaim operates to relinquish all rights in the property that daughter has at the time the quitclaim is signed.

As for son-in-law, if he is not on title before the loan, then he has no interest to quitclaim. However, by signing the quitclaim, he will release any rights to the property that he could potentially claim (legally termed, "equitable interest"). However, in order to ensure that son-in-law cannot claim an equitable interest at dissolution of marriage, he must sign a waiver agreement. This is a very specific statement that is unique to California law -- and it requires equally specific procedures which must be followed. Otherwise, the waiver will be deemed invalid and unenforceable.

II) does quitclaim deed and contract need to be registered at public records to be valid? or can mother keep in safe box in case needed in the future?

A: The quitclaim must be recorded with the county clerk in order to provide valid notice to third parties, and to avoid any intervening liens which may be recorded. While this is not strictly required, it's a very bad idea to fail to record a deed. If the deed is lost or destroyed, then without the recording there will be no proof that the deed was ever signed.

I hope I've answered your question. Please let me know if you require further clarification. And, please provide a positive feedback rating for my answer -- otherwise, I receive nothing for my efforts in your behalf.

Thanks again for using Justanswer!

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