Property transferring in AZ

[ashina1]

What is the name of your state? AZ

My sister owns a single family home in AZ with a mortgage and want to transfer the title to me as a gift.

My sister is not a U.S. resident and live outside the U.S.

I'm a permanant resident in the U.S.

How can we transfer the title? what kind of tax we will have to pay? what is the best way to do it?

What about the mortgage? does my sister need to pay it off or can I take the mortgage on my name?

Thanks

[abezon]

If the house is worth more than $125,000 or 150,000, you'll have to file a Form declaring a gift from a non-citizen. I think the number's 3520, but you can look up older discussions to find it. The value of the gift is the equity in the home.

whether you can take over the mortgage is up to the mortgage holder. You'll probably have to refinance in your own name. You could just take over the mortgage informally -- you make the payments. As long as they are getting paid on time, the mortgage company doesn't really care who signs the checks.

Transfer title via a quitclaim deed or warranty deed, whichever is usual in your state. Check with the assessor's office to see if gifting a house to a sibling will trigger a reassessment or excise taxes. You should be able to find a lawyer to draw up the deed for you for about $100.

[ashina1]

Thank you for your respond.

I still have few things I don't understand:

The house value means market value or assessor's value?

Thae equity in the home is 45,000 $. Do I still have to declare a gift from a non-citizen?

How this gift & the transfer of title can affect the tax I'll have to pay when I'll sell the house? are there any better ways to do it?

Does my sister have to pay off her mortgage before we change title or does the fact that she has a mortgage on her name does not affect that and I can continue paying this mortgage or ask to be a co-signer?

Thanks

[abezon]

There are 4 separate transactions in play here, between: you & your sister, you & the county property tax assessor, you & the IRS, & you & the bank.

For the transfer of the title between you & your sister, use a quitclaim or warranty deed. I strongly suggest you pay an attorney to do this for you.

For the property tax assessor, call the county & ask if a gift between siblings can trigger a reassessment or if it triggers excise/transfer taxes. The answer may effect how you structure the transfer of title.

For the IRS, if the value of the house is over the minimum reporting amount, you have to file a Form 3520 (I think that's the number). You only have to worry about page 6, though, so it's not too bad. when you sell the house, you will have the basis your sister had (how much she paid for it), and can exclude any profits under $250,000 if you own & live in the house for 2 or the 5 years prior to sale.

Whether you can take over the mortgage is between you & the mortgage company. You might be able to add your name, or you might have to refinance in your own name. Unless your sister wants her name off the mortgage or you can refinance for a lower interest rate, it's probably best to just leave the mortgage in her name & make the payments for her. This keeps your credit freed up for other purchases. On the other hand, your history of timely mortgage payments doesn't help your credit rating if the loan remains in her name.

[ashina1]

Thank you again for your answer.

I have few other things I would like to know:

1. My sister live outside the U.S. and will not come to the U.S soon. what do I need to get from her for the title transfer?

2. Is it possible that the bank will agree to transfer the title to me but the mortgage will stay on my suster name?

3. How much Tax will my sister need to pay if there will be a reassessment by the tax assessor?

4. Can I find an attorney to change title here in N.Y.

How much do I have to pay as a fee?

Can we do it without an attorney?

5. My sister house is an investment property. will it be good idea for me to open a firm and take the title under the firm's name?

I ask this because I'm thinking to open a firm and to invest in real estate. should I invest in real estate throught a firm or an indevidual?

[abezon]

Originally posted by ashina1
Thank you again for your answer.

I have few other things I would like to know:

1. My sister live outside the U.S. and will not come to the U.S soon. what do I need to get from her for the title transfer?

A signed, dated transfer deed notarized by a US notary public. She can find one at the US Consulate.

2. Is it possible that the bank will agree to transfer the title to me but the mortgage will stay on my suster name?

The bank has nothing to do with who has title and cannot stop you from taking title. However, the mortgage may have a due on sale clause that transfer will trigger. Read the mortgage to check.

3. How much Tax will my sister need to pay if there will be a reassessment by the tax assessor?

Call the county assessor.

4. Can I find an attorney to change title here in N.Y.
Sure

How much do I have to pay as a fee?
Whatever you negotiate. Talk to a few of them.

Can we do it without an attorney?
Yes, but why not spend a few bucks to get it done right?

5. My sister house is an investment property. will it be good idea for me to open a firm and take the title under the firm's name?

Depends on what kind of investing you want to do. You'd create an investment company if you anticipate liability issues or have multiple investors. Talk to an attorney in NY about this.

[ashina1]

Hi,

Thank you for the info.

I would like to know:

As I wrote before my sister doesn't live in the U.S.

In order to transfer title and take care of other thing regarding her property (like refinance her mortgage), can my sister sign a durable power of attorney?

how can we find this kind of form?

can she sign the form before a Notary public outside the U.S.?

Thank you again

[abezon]

Before anything can happen, she'll have to find a US notary public and sign the transfer deed/power of attorney in front of him/her. Every US Consulate/Enbassy has a US notary public somewhere on the payroll for such situations. The NP does not have to be in the US, but MUST have a US NP certificate. A Canadian NP in the US will not do. A Canadian NP in Canada will not do. A US NP in Canada is fine.

It will probably be easier & cheaper to just hire an attorney to prepare all documents and send everything to her so she can take the papers to a US NP and sign & have them notarized.

[ashina1]

Hi,



What about the refinance process?

Can my sister sign a durable power of attorney and I can use it to sign all the refinance paper work?

How can we get the durale power of attorney form?

Does the NP at the embassy have this kind of forms or can we download one from the internet?

Thanks again