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Law Pro
Law Pro, Lawyer
Category: Real Estate Law
Satisfied Customers: 24870
Experience:  20 years extensive experience in real estate law, foreclosure, finance, and landlord tenant law.
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hello. My brother and I recently purchased a home together

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hello. My brother and I recently purchased a home together in Dutchess County NY. For mortgage approval reasons, i gifted him my portion of the money and he got the mortgage in his name. We would now like to add my name to the deed. I have done some research on line and it appears there is a form to be completed and filed. (quit claim deed?)

My question is does this sound correct and do we need to obtain an attorney to do this?

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Yes, a quitclaim deed would be what you would use to place your name on the title to the property.

However, there is a glitsche.

There is such a things as an "acceleration" clause in the mortgage and note that your brother signed.

Acceleration clauses are terms in loan agreements that require the borrower to pay off the loan immediately if certain conditions are met or happen. For example, most, if not all, home mortgages have an acceleration clause that is triggered if the borrower misses too many payments. Acceleration clauses most often appear in mortgages, both residential and commercial. They also appear in some leases.

Some mortgages have clauses that allow acceleration if the borrower sells or transfers an interest in the mortgaged property. [LIKE IN YOUR SITUATION] These clauses are intended to protect the lender’s security interest in the mortgaged property. Accordingly, these acceleration clauses allow acceleration if the sale or transfer would impair the lender’s security interest, or if the borrower fails to get the lender’s consent in advance. These types of clauses may not be triggered if property ownership transfers because the borrower died and the property passed to his heirs.

So, if you transfer ownership to you - you risk the lender accelerating the mortgage to the balance being due immediately.

Now it's unlikely they would find out becuase they don't have someone searching the courthouse records as to all the properties they made loans for. However, if something was to happen down the road like a couple of missed payments - then they do search the records and if they would find that he transferred an interest to you - then you're at risk that they invoke the acceleration clause and demand that the loan balance be paid off immediately.

But a quitclaim deed can be purchased from for the state of NY - for about $25. They can even prepare the quitclaim deed for you for about $200.

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