Sister wants to buy my half out of house-Best way to proceed?

[deltadart1]

What is the name of your state (only U.S. law)? Iowa

Mom died 1 1/2 years ago,probate and all legal work were completed last August. My sister and I now own moms house. My sister wants to buy it and move into it. We have settled on a price. Since the house will not be put up for sale with a realtor what is the best way to handle the paperwork needed to make my sister the sole owner of the house? Thank You.

 

[tranquility]

What is the name of your state (only U.S. law)? Iowa

Mom died 1 1/2 years ago,probate and all legal work were completed last August. My sister and I now own moms house. My sister wants to buy it and move into it. We have settled on a price. Since the house will not be put up for sale with a realtor what is the best way to handle the paperwork needed to make my sister the sole owner of the house? Thank You.

Get a real estate attorney. Even attorneys don't like to make deeds unless they specialize in them. Get an expert. He will advise on other things, like title insurance, you may want.

 

[latigo]

What is the name of your state (only U.S. law)? Iowa

Mom died 1 1/2 years ago, probate and all legal work were completed last August. My sister and I now own moms house. My sister wants to buy it and move into it. We have settled on a price. Since the house will not be put up for sale with a realtor what is the best way to handle the paperwork needed to make my sister the sole owner of the house? Thank You.

The “best way to handle the paperwork” is to have an attorney prepare for your signature a QUITCLAIM DEED. And to do so in the format and have it signed, notarized and recorded as prescribed by the Iowa Code.

Iowa Code Section 558.19 Forms of conveyance.
The following or other equivalent forms of conveyance, varied to suit circumstances, are sufficient for the purposes herein contemplated:
1. For a quitclaim deed.
For the consideration of .... dollars, I hereby quitclaim to **************. all my interest in the following tract of real estate (describing it).

What you DO NOT want to sign is a warranty or grant deed. The reason being that (1) the quitclaim deed will adequately convey your interest in the land over to you sister and (2) without you in anyway guaranteeing clear title to the property. There was not guarantee of clear title in the form by which it was set over to you and sis, so neither should you warrant it to her.

_______________

Why someone would suggest that a policy of title insurance might be appropriate in a conveyance between tenants in common I can’t say. But you definitely do not need to go to that expense. The attorney will explain what it is and why it is not applicable or necessary here. You should also consult with the attorney regarding any taxation consequences resulting from the sale.

ALSO, do not try to cut corners and attempt to consummate this transaction by downloading a form off of the Internet. You will surely screw things up. And unscrewing them could cost much more that the attorney’s bill.

Good luck

 

[LdiJ]

The “best way to handle the paperwork” is to have an attorney prepare for your signature a QUITCLAIM DEED. And to do so in the format and have it signed, notarized and recorded as prescribed by the Iowa Code.



What you DO NOT want to sign is a warranty or grant deed. The reason being that (1) the quitclaim deed will adequately convey your interest in the land over to you sister and (2) without you in anyway guaranteeing clear title to the property. There was not guarantee of clear title in the form by which it was set over to you and sis, so neither should you warrant it to her.

_______________

Why someone would suggest that a policy of title insurance might be appropriate in a conveyance between tenants in common I can’t say. But you definitely do not need to go to that expense. The attorney will explain what it is and why it is not applicable or necessary here. You should also consult with the attorney regarding any taxation consequences resulting from the sale.

ALSO, do not try to cut corners and attempt to consummate this transaction by downloading a form off of the Internet. You will surely screw things up. And unscrewing them could cost much more that the attorney’s bill.

Good luck

Ignore the bolded, completely. You should consult with a tax professional regarding any taxation consequences resulting from the sale, not an attorney unless its a tax attorney. Most attorneys know just enough about taxes to be dangerous, at best. However there should be few, if any taxation issues.

 

[Ohiogal]

Ignore the bolded, completely. You should consult with a tax professional regarding any taxation consequences resulting from the sale, not an attorney unless its a tax attorney. Most attorneys know just enough about taxes to be dangerous, at best. However there should be few, if any taxation issues.

The reverse could be said as well. Most tax professionals know just enough about the law to be dangerous, at best.

 

[LdiJ]

The reverse could be said as well. Most tax professionals know just enough about the law to be dangerous, at best.

Be that as it may, I cannot imagine a tax professional sending someone to consult with another tax professional on a matter that requires an attorney. Latigo told the OP to consult with an attorney on a matter that requires a tax professional.

 

[Ohiogal]

Be that as it may, I cannot imagine a tax professional sending someone to consult with another tax professional on a matter that requires an attorney. Latigo told the OP to consult with an attorney on a matter that requires a tax professional.

Not necessarily. The attorney might be a tax/real estate attorney or one of another specialty that deals with the tax liabilities. he didn't send the individual to a family law attorney. Many attorneys are equipped to discuss and advise on taxes. No tax professional is legally allowed to give law advice.

 

[LdiJ]

Not necessarily. The attorney might be a tax/real estate attorney or one of another specialty that deals with the tax liabilities. he didn't send the individual to a family law attorney. Many attorneys are equipped to discuss and advise on taxes. No tax professional is legally allowed to give law advice.

The bolded is incorrect. I agree about referring someone to a tax attorney and made mention of that in my original response. I do not agree about real estate attorneys and taxes.

 

[anteater]

The real question is: Why pay attorney rates for what should be a pretty simple tax question?

 

[LdiJ]

The real question is: Why pay attorney rates for what should be a pretty simple tax question?

There is that as well, and its a VERY simple tax question.

 

[deltadart1]

Maybe this information will help. When making the inventory prior to probate we valued the house at $115,000. The selling price that my sister and I have agreed on is $100,000. My share would be $50,000. So I don't know anything about possible tax implications when it comes to these numbers.

My sister will have no problem getting a mortgage for the $50,000. I remember at the time we were working with our lawyer to get all the paperwork(probate,etc.)he said if we decide to sell the house he could do the work and charge 2%. At that time we did not know what we were going to do with the house. Hope this info helps. Thank You.

 

[curb1]

Is this really that complicated that "deltadart1" couldn't do this by himself/herself? This is pretty basic stuff. Why all of the hoops?

 

[tranquility]

Maybe this information will help. When making the inventory prior to probate we valued the house at $115,000. The selling price that my sister and I have agreed on is $100,000. My share would be $50,000. So I don't know anything about possible tax implications when it comes to these numbers.

You might have a deductible loss on the sale. Did you ever live in the house? What was your purpose for holding it?

My sister will have no problem getting a mortgage for the $50,000. I remember at the time we were working with our lawyer to get all the paperwork(probate,etc.)he said if we decide to sell the house he could do the work and charge 2%. At that time we did not know what we were going to do with the house. Hope this info helps. Thank You.

Someone's going to need title insurance then. True, a lender policy. But, you might as well shop it around now.

 

[deltadart1]

I like what curb1 said. I thought this would be a pretty straight process. Not sure I could do it myself though. Thats what i'm trying to find out here. I was just thinking about this. I have all the paperwork for the house. I'm already getting the property tax notices and we are paying them. Why couldn't both of us just go to the courthouse and have the ownership of the house be transferred from both of our names to just hers? Can't it be this simple?

 

[deltadart1]

You might have a deductible loss on the sale. Did you ever live in the house? What was your purpose for holding it?

Someone's going to need title insurance then. True, a lender policy. But, you might as well shop it around now.

Lived in the house from 1968 to 1973. What was your purpose for holding it? Heck both of us would have sold it a day after we became owners but it was a brutal job cleaning the place out. Mom was not a hoarder but she kept everything and it was quite the job just to go through all of her stuff and figure out what gets thrown away and what items to keep.

So who is the 1(one)person we should go to that can get this deal done? Both of us want to be able to sit at a desk,sign a few papers and then walk out and my sister is the sole owner of the house. Also is it anybodys business on what price my sister and I agree on that would be the selling price?