Want to add myself and my wife to her sisters Deed in Texas

[heynowjerry]

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

My sister in law (wife's sister) has property in Texas. We want to add both my and my wife's names to the Deed using a QuitClaim Deed. No mortgage.

Must all 3 of us be in person to sign and notarize? Or can we sign in a different state by notary and have her do the same afterwards in Texas, before filing with the county?​

Are there any known obstacles we are not aware?​

I also want to confirm that the three of us will be considered owners of the house after this is in place​

Thanks in advance.

 

[FlyingRon]

YOU can't do anything. The sister in law is the one that has to sign the deed (yes it needs to be signed in front of a notary).

Understand that "putting someone on the deed" is somewhat of a misnomer. Real estate doesn't have title documents like cars. The title of the property is the history of all the deeds (and similar documents) over time. Each deed conveys some interest (share of ownership) the grantor (person signing the deed) to another person or person(s) (the grantees). Yes, "putting you on the deed" is irrecovably transferring some part of her ownership in the house to you. It's not something to be considered lightly.

There may be fees required to record the transfer (you would need to see if they exempt family transfers). Further, the transfer might trigger a property tax recalculation.
In addition, if the value of the transferred property is greater than $14,000, she would need a gift tax filing (though no actual tax is likely due). Note as a gift, you receive whatever her basis is on the property. This could cause a significant capital gains tax obligation if the property is eventually sold.

Note, that since you are now owners you are liable for the property taxes on the property. Further, if there are any ordinances on upkeep, you could be subject to violations for those as well.

If there is still a mortgage on the property, the transfer could also result in the bank calling the loan.

Just why do you think this is a good idea for your sister-in-law to do?

 

[heynowjerry]

YOU can't do anything. The sister in law is the one that has to sign the deed (yes it needs to be signed in front of a notary).

Understand that "putting someone on the deed" is somewhat of a misnomer. Real estate doesn't have title documents like cars. The title of the property is the history of all the deeds (and similar documents) over time. Each deed conveys some interest (share of ownership) the grantor (person signing the deed) to another person or person(s) (the grantees). Yes, "putting you on the deed" is irrecovably transferring some part of her ownership in the house to you. It's not something to be considered lightly.

There may be fees required to record the transfer (you would need to see if they exempt family transfers). Further, the transfer might trigger a property tax recalculation.
In addition, if the value of the transferred property is greater than $14,000, she would need a gift tax filing (though no actual tax is likely due). Note as a gift, you receive whatever her basis is on the property. This could cause a significant capital gains tax obligation if the property is eventually sold.

Note, that since you are now owners you are liable for the property taxes on the property. Further, if there are any ordinances on upkeep, you could be subject to violations for those as well.

If there is still a mortgage on the property, the transfer could also result in the bank calling the loan.

Just why do you think this is a good idea for your sister-in-law to do?

Good feedback.
Simple in nature. She outright owns the home. No mortgage.
We are helping her, mother lives in the house, and we will pay taxes, and utilities. It's family. Also, not an high-value property.

Make sense?

 

[LdiJ]

Good feedback.
Simple in nature. She outright owns the home. No mortgage.
We are helping her, mother lives in the house, and we will pay taxes, and utilities. It's family. Also, not an high-value property.

Make sense?

No, it honestly does not make sense to me at all. Why do you need to be an owner of her house in order to help her?

 

[NC Aggie]

Good feedback.
Simple in nature. She outright owns the home. No mortgage.
We are helping her, mother lives in the house, and we will pay taxes, and utilities. It's family. Also, not an high-value property.

Make sense?

So what is the intent in adding you and your wife to the property deed? Is it for you and your wife to obtain some controlling interest in the property or to protect the family's interest in the property should something happen to your sister-in-law? As FlyingRon indicated, it shouldn't be considered just a formality, it could lead to negative unforeseen consequences that are not always apparent. I've always heard from real estate lawyers and brokers to avoid joint ownership of real estate property between non-spouses especially when rights of survivorship aren't established. I don't know if your sister in law has children or other siblings, but you're potentially creating a convoluted ownership structure should something happen to any of the people on the deed.

Additionally, you're assuming additional liability, as well as exposing the property to creditor's claims of all people listed on the deed. If any of you were to file bankruptcy, then that person's ownership stake could be claimed by a creditor or you all could be forced to sell the property to pay the other's person debt. These are just a few of the reasons why it isn't a good idea and why you probably should have considered other options to accomplish the purpose.

 

[heynowjerry]

So what is the intent in adding you and your wife to the property deed? Is it for you and your wife to obtain some controlling interest in the property or to protect the family's interest in the property should something happen to your sister-in-law? As FlyingRon indicated, it shouldn't be considered just a formality, it could lead to negative unforeseen consequences that are not always apparent. I've always heard from real estate lawyers and brokers to avoid joint ownership of real estate property between non-spouses especially when rights of survivorship aren't established. I don't know if your sister in law has children or other siblings, but you're potentially creating a convoluted ownership structure should something happen to any of the people on the deed.

Additionally, you're assuming additional liability, as well as exposing the property to creditor's claims of all people listed on the deed. If any of you were to file bankruptcy, then that person's ownership stake could be claimed by a creditor or you all could be forced to sell the property to pay the other's person debt. These are just a few of the reasons why it isn't a good idea and why you probably should have considered other options to accomplish the purpose.

Ok, I appreciate all of your concerns. I'll look for guidance elsewhere. First post on this forum, and not what i expected.

I typically don't banter on these forum sites, and look to obtain non-subjective factual data, as compared to a brandishing or deep dive into irrelevant datapoints.

Take care.

 

[Zigner]

Ok, I appreciate all of your concerns. I'll look for guidance elsewhere. First post on this forum, and not what i expected.

I typically don't banter on these forum sites, and look to obtain non-subjective factual data, as compared to a brandishing or deep dive into irrelevant datapoints.

Take care.

Don't let the door hit you in the...elbow...on the way out.

 

[quincy]

Ok, I appreciate all of your concerns. I'll look for guidance elsewhere. First post on this forum, and not what i expected.

I typically don't banter on these forum sites, and look to obtain non-subjective factual data, as compared to a brandishing or deep dive into irrelevant datapoints.

Take care.

You received accurate answers to the questions you posed. Were you expecting something else?

Whatever you expected, I think you are smart to avoid "bantering" on forums. You do not banter well.