Transfer of Title

[tttishopper]

What is the name of your state? NY

I own a two family home with my soon to be ex-husband as tenant with right of survivorship... My ex is ok with transferring his half of the house to my sister instead. Assuming we keep the market value as the selling price we paid three years ago, how will my ex, my sister and myself be taxed?

Thanks.

 

[nextwife]

What is the name of your state? NY

I own a two family home with my soon to be ex-husband as tenant with right of survivorship... My ex is ok with transferring his half of the house to my sister instead. Assuming we keep the market value as the selling price we paid three years ago, how will my ex, my sister and myself be taxed?

Thanks.

Is he on the mortgage?

 

[moburkes]

Is he on the mortgage?

And, does the mortgage company know about this transfer?

 

[tttishopper]

Yes.. He is on the mortgage, and we have not told the mortgage company... we are just thinking about the various options so that all three of us to get the least amount taxed as possible.. We totally understand and willing to pay tax, but we just want to minimize it as much as possible...

Thanks again.

 

[nextwife]

Yes.. He is on the mortgage, and we have not told the mortgage company... we are just thinking about the various options so that all three of us to get the least amount taxed as possible.. We totally understand and willing to pay tax, but we just want to minimize it as much as possible...

Thanks again.

Most mortgages contain a "Due on Transfer" clause, allowing the lender to call the note due upon transfer.

You and sis should refinance him off the mortgage and simultaneously have him deed out his interest.

 

[mjcrules]

There is a difference between signing the mortgage and signing the note, however. Signing the mortgage, but not the note, does not (typically) hold that person liable for the debt, only for the nonpayment of taxes, insurance and other specific mortgage lender requirements contained in the mortgage document. It also conveys any ownership interest that person has with regards to notification of changes in the note document, assignment of the debt, etc. Title changes involving title passing from the non-note signing entity to the note liable entity should be communicated to the lender, but rarely have I seen it cause the note acceleration provisions to be activated. The lender is typically in a better position having a perfected lien on a 100% obligor titled interest in the mortgaged property.

Bottom-line, need to make sure Ex is on the Note before arranging any title transfers AND without notifying lender. In either case, DO notify the lender to prevent unwelcomed surprises.

 

[HomeGuru]

What is the name of your state? NY

I own a two family home with my soon to be ex-husband as tenant with right of survivorship... My ex is ok with transferring his half of the house to my sister instead. Assuming we keep the market value as the selling price we paid three years ago, how will my ex, my sister and myself be taxed?

Thanks.

**A: this is not the Tax Law forum.