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KimberlyLaw, Attorney and Real Estate Broker
Category: Real Estate Law
Satisfied Customers: 4219
Experience:  13 years of experience in real estate law: Foreclosures, Landlord-Tenant, Condo/Coop, Property Law, Deeds, Purchases/Sales, Estates.
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My wife and I are looking into a home transfer from her

Customer Question

My wife and I are looking into a home transfer from her father to us. The home is very old (1969) and will need a fairly large investment for upgrades. We would be planning on either refinancing (transferring) the current loan (with upgrade monies included) or paying off the current loan with a new loan (or cash), again with remodeling in mind. We have lived (as renters) in this home for 12 years or so. The mortgage is getting close to being payed off (80K or so left on it). This is not his (her father's) primary residence. He owns two other homes. My basic questions are.
1. What is the easiest (least expensive) way to accomplish this?
2. What are the major concerns we should be aware of (property taxes, capitol gains, etc.)? Is there anything I, as the spouse, need to be aware of?
3. Approximately, what kind of legal fees would we be looking at to help facilitate this transfer?
4. What type of loan would work best for this type of situation? It is feasible for us to pay off the remaining principal in cash and finance the remodel. Ideally, the remodel loan could be deferred (not sure if this is possible) until the work is complete to easily allow us to rent elsewhere during the construction phase.
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  KimberlyLaw replied 1 year ago.

Hello, my name is ***** ***** I am an attorney. I am happy to assist.

Usually we only answer one question per posting, but I will go ahead as a courtesy and answer all your questions.

The easiest way to accomplish this transaction is to do a Quit Claim Deed from her father to the both of you. That provides no guarantees as to title, but is the quickest and easiest. That is then filed with the registry of deeds to make the transfer legal.

The deed can't be filed until you resolve the existing mortgage on the property. Sometimes large banks will allow a mortgagee to assign the loan to a family member, so that is an option that could make it easy. You could also add on a home equity line of credit while you do that assignment, to give you some funds for improvements.

If the bank won't allow the assignment, then you just need to apply for your own mortgage and your bank will pay off the bank of his mortgage at the closing. You could also just pay it off in cash if you prefer, but you can't deduct any of the interest payments, only he can, so I don't advise that.

There will be taxes on the transfer, based on the increase in value, and you do still have to pay that, even if he gives it as a gift. This question is best suited for an accountant, but I believe there is also a way for the father to take on the tax implications instead of the two of you, if that is what he is willing to do.

Property taxes always have to be paid, so if there are any outstanding taxes you would be responsible for those once you purchase the home.

Legal fees vary, but generally a closing is around $1,500 and then there are closing costs that can range from $500 to $2,000 or so. All that depends on the location, lawyer, bank, etc.

Let me know if I got to everything, and if you have any questions about the above.



Customer: replied 1 year ago.
The answer was fine, and thank you, ***** ***** payment method is misleading for this site. I was more than ok spending 40 on this answer, but the site framed this in a 5 dollar deposit that would allow me to pay up to 40 based on the satisfaction of my answer. As I type this, I see I have already been charged 40 from my bank account. I won't be using this service again.
Expert:  KimberlyLaw replied 1 year ago.

First I just want to note that I am just the attorney answering your question, so I was not the one who provided you with the information on how the system works.

However, I do know that even though your deposit may have been processed, I don't get paid until you "accept" my answer with positive feedback in the first three options. Also note that I only get 50% of what you pay, the rest goes to the system. That means that if you don't like my answer, you can still get another answer from another expert. That's how it is set up so that you always get a good answer. In addition, customer service is always available if you were so unhappy that you wanted a refund, that is, I believe, their guarantee. So I do not believe that is misleading at all. It works just as you understood it.

Nevertheless, I am glad that you were happy with your answer, and you are welcome to ask for me again in the future. Just start your question asking for Kimberly Law. If you don't have any follow up questions for me now, please proceed to provide positive feedback so that I get credit for my work with you today.

Take care,


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