Gift Deed

[CharlotteInvest]

What is the name of your state? nc

does anyone knows if a gift deed is considered a transfer on a property? also wanting to know what type of language is needed for a gift deed? i am asking because i don't want to be penalized for taxes if i receive a property i didn't pay for, plus the house has its existing mortgage.

 

[FlyingRon]

A gift is a transfer.
There's probably some marginal fee for recording the deed.
You don't owe any capital gains on the gift until you sell it. At that point you are taxed based on the giving person's basis (what they paid for it).

The mortgage is another story. Deeding the property (in any form) doesn't change the terms of the mortgage. The giver would still be responsible for it. Further, when the mortgage company figures out the transfer has happen, they will invoke a due-on-sale clause if one exists.

A gift deed typically has the same terms as any other deed but instead of "valuable consideration" as the reason for the transfer it is a "gift" or sometimes "love and affection."

 

[CharlotteInvest]

thanks flyingron, one more question i think.

if a property was gift deeded to me and i sold it for less than what is owed with the lenders approval, can i immediately sell that property for a profit the same day i pay off the existing financing?

i am hearing so much stuff and i don't really want to get to involved if its bogus from the start.

i am usually a buy and hold type person.

 

[seniorjudge]

Q: if a property was gift deeded to me and i sold it for less than what is owed with the lenders approval, can i immediately sell that property for a profit the same day i pay off the existing financing?


A: If you have paid off all liens on the place, you can give it away.



I don't know what kind of scheme you are in, but you best have title insurance.

(Full disclosure: I do not sell title insurance but I sure have bought a ton of it!)

 

[CharlotteInvest]

I don't know what kind of scheme you are in, but you best have title insurance.

(Full disclosure: I do not sell title insurance but I sure have bought a ton of it!)

yes i will be paying off the liens. thanks senior judge. should i get the title insurance once i get the deed or do you mean before i sale it? don't mean to sound simple.

 

[seniorjudge]

You need to order the title insurance when you buy it.

If you already own it, then order it when you get a buyer.