Agent

Tax consequences of quit-claiming real estate title

Son's dissolved relationship with girlfriend inspires action
Published on Dec 6, 2005

DEAR BOB: In 1994 my son and I bought our house. The mortgage broker suggested we take title with my mother and my son's girlfriend so we could qualify for a mortgage. Our purchase price was $241,000, with a $40,000 cash down payment. We all had good credit. Since then, my son and his girlfriend broke up. My mother is now almost 90. Both are willing to sign quitclaim deeds to clear their names from the title. However, as houses in our neighborhood now sell for around $700,000, a lawyer I talked with advised against any title change because he says that will trigger a huge property-tax reassessment. What should we do? – Beth R. DEAR BETH: The obvious answer is to visit the local tax assessor's office to determine if the quit claim deeds will trigger a full or partial property-tax reassessment. Purchase Bob Bruss reports online. If the answer is "yes," I don't see any easy solution to get your mother and the ex-girlfriend off the house title without a property-tax reassessment. Un...

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