Buying Out a Sibling

[kramerd1506]

We're in Texas. My father died in 2014 and left my brother and me 2 properties, both of which are free and clear and we rent both of them to tenants. My brother isn't interested in owning them anymore and I am, so I will be buying out his interest in both properties. What are the steps we need to take and what is involved in doing it the right way? I know somewhere in the process we'll need to fill out a quit claim form (or a quit claim deed, I've heard both terms). But what does that entail? We have already agreed upon a price to buy him out so do we have to have appraisals? Are title checks required? Are surveys required? How do I get his name off of the tax roles in the 2 different counties? How do I get new titles and/or new deeds without him included? Any other advice, things I need to know or gotchas? TIA!

 

[LdiJ]

We're in Texas. My father died in 2014 and left my brother and me 2 properties, both of which are free and clear and we rent both of them to tenants. My brother isn't interested in owning them anymore and I am, so I will be buying out his interest in both properties. What are the steps we need to take and what is involved in doing it the right way? I know somewhere in the process we'll need to fill out a quit claim form (or a quit claim deed, I've heard both terms). But what does that entail? We have already agreed upon a price to buy him out so do we have to have appraisals? Are title checks required? Are surveys required? How do I get his name off of the tax roles in the 2 different counties? How do I get new titles and/or new deeds without him included? Any other advice, things I need to know or gotchas? TIA!

Even if you are not using a mortgage company, you should do the transaction through a title company or an attorney, to make certain that all of the i's are dotted and the t's crossed. If a mortgage company is not involved appraisals normally would not be needed. Its the mortgage companies that want appraisals so that they can be certain that the property is worth at least as much as they are loaning on it.

If you use a title company or an attorney they will handle everything that you have questions about.

 

[adjusterjack]

Agree. Hire a title/escrow company. All your questions will be answered, all your details taken care of just as if you were buying a house from a stranger.

 

[Taxing Matters]

Agree. Hire a title/escrow company. All your questions will be answered, all your details taken care of just as if you were buying a house from a stranger.

Get a real estate attorney to assist you. The attorney can have the title check run (which all that a title company can do for you) and also can draft/review the contract, the deed, and anything other legal needs you have for the transaction. The title company may not legally give you legal advice, cannot draft the contract, etc. Doing that would be the unauthorized practice of law and outside the scope of what title companies are set up to do. You don't want to take legal advice from someone who is not a lawyer.