What is the name of your state? Virginia
I currently own a rental property with another party. The other party is currently in the process of taking over the property by themselves. The mortgage is in our personal names. The other party has arranged to refinance in their name only. Because this is considered a refinance and not a sale, they have arranged a deed of gift to get my name off of the deed. I have never heard of a deed of gift. We are also partners in an LLC which will be disolved. The other party will first purchase our interest in the LLC for our basis cost. Are there tax ramifications for this? After the deed has been recorded, is there any liability on the side of the donor?
I want to make sure that there is no liability for the property on my part and that this is all legal. I don't want to find out a few years from now when there's nothing I can do about it. The other party is refusing to use a lawyer and is going through a title company for closing on the loan.
I currently own a rental property with another party. The other party is currently in the process of taking over the property by themselves. The mortgage is in our personal names. The other party has arranged to refinance in their name only. Because this is considered a refinance and not a sale, they have arranged a deed of gift to get my name off of the deed. I have never heard of a deed of gift. We are also partners in an LLC which will be disolved. The other party will first purchase our interest in the LLC for our basis cost. Are there tax ramifications for this? After the deed has been recorded, is there any liability on the side of the donor?
I want to make sure that there is no liability for the property on my part and that this is all legal. I don't want to find out a few years from now when there's nothing I can do about it. The other party is refusing to use a lawyer and is going through a title company for closing on the loan.