Splitting a Deed and retaining ownership

[Whokluvr]

Indiana

Hi,

I want to split a Deed for my home and a 40 acre parcel for mortgage purposes. I have owned this property for several years. To secure the best interest rates my home must rest on a Deed / Legal description of no more than 5 acres. I would remain owner of what would become a 35 acre tract and a 5 acre tract with home. I am capable of writing the new Legal description defining the boundaries of the split but am uncertain how to word the Deed. Should a Quit Claim Deed identifying myself as owner prior too and following the property split be used?

[FlyingRon]

You can't "split a deed." Deeding yourself a portion of the parcel, doesn't make the parcel smaller. All it may end up is making it difficult to sell things later on. It won't make the bank happy. To get around this you'll have to divide the lot, which will probably have multiple issues. Not likely to be a self service thing. See a lawyer or find a bank that will finance the entire property.

[nextwife]

And talk to your county/municipality about what their requirements may be to legally divide a parcel. You must do any division in accordance with whatever rules they have for approval of a land split. Generally, I see municipalities requiring a proposed new Certified Survey Map submitted for approval, then signed by municipal officers once approved by the board, and then recorded, creating a new CSM, which in turn creates the new legal descriptions.

Additionally, if there is an underlying mortgage, the lender likely needs to "sign off" approving any change to their collateral of that nature.

[Whokluvr]

Thanks for the replies,

Sorry for my inaccurate choice of words but please educate me, I want to split a piece of property. You are right, any division must meet county requirements and I've already talked to my County Planner, Recorder and Platt offices and have covered the bases with them. If my plan was to split this property and sell the house and 5 acres to another I believe a Quit Claim or Warranty Deed would be created naming me as the seller, naming the buyer and specifying the Legal description of the 5 acres.....correct? Is an identical procedure used to split the property when I want to retain ownership? What type of Deed would be written and how would it be worded to correctly document this transaction?

[FlyingRon]

I don't think you need to deed it at all. The approval of the subdivision would be what breaks the property into two and since you were the owner the undivided property you'd be the owner of the divided ones.

[nextwife]

I don't think you need to deed it at all. The approval of the subdivision would be what breaks the property into two and since you were the owner the undivided property you'd be the owner of the divided ones.

Technically, it is the RECORDING of the approved new CSM that creates the new legal descriptions.

[Whokluvr]

Thank You,

You have been very helpful.