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Irwin Law
Irwin Law, Lawyer
Category: Real Estate Law
Satisfied Customers: 6855
Experience:  Lawyer- Broker 30+years - foreclosure, short sale, liens, title attorney.
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My wife and I are buying out her sisters half of a property

Customer Question

My wife and I are buying out her sisters half of a property that they inherited. We are trying to determine if we should transfer ownership with a Quitclaim Deed or a RE Contract with warranty deed. It seems that because their personal relationship is very close, a quit claim is the easier way to go.
What are the pros and cons of each (quit claim vs warranty deed)?
I am curious if there needs to be some type of tax implications (capital gains) for either sister regarding personal income tax. Please help me resolve this. Thanks
Submitted: 3 months ago.
Category: Real Estate Law
Expert:  Irwin Law replied 3 months ago.

Good afternoon. Thanks for contacting Just Answer. If you are paying for her interest in the property, then you should be entitled to receive a warranty deed, rather than a Quitclaim. Deed. A warranty deed is a superior right with regard to the sellers title. The preparation cost for either deed is exactly the same. There are capital gains tax implications to the sister, but not to you because you are not selling your interest.
I hope that this answers your question. If not, please feel free to send me a reply for further information. Experts on this site (myself) are compensated ONLY if the customer (yourself) "rate" or "accept" the answer.
Please rate the answer so I may receive credit. There is no additional cost to you. Thanks for your understanding and for using JUST ANSWER.

Expert:  Irwin Law replied 3 months ago.

Hello again. Do you have a follow-up question? Experts on this site (myself) are compensated ONLY if the customer (yourself) "rate" or "accept" the answer.

Please rate the answer so I may receive credit. There is no additional cost to you. Thanks for your understanding and for using JUST ANSWER.

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