Interspousal Transfer Grant Deed

[kevinblackwell]

What is the name of your state? CALIFORNIA

When my wife divorced her former husband, the dissolution judgment was that she would stay in the house with the children until 2012 (that's when the youngest child would go off to school). By 2012 she was to sell the home or give her ex his court agreed interest in the home of $236,636. Later, when my wife and I married, her ex husband started whining about getting his interest in the house now. My wife and I decided to refinance and give him his interest making her free and clear of any responsibility to him.

In November 2006 we finally settled a refinance where my wife was the borrower and I had to co-sign to get the loan to refinance her ex's share plus the first mortgage. From the beginning we wanted to be assured there would be no re-assessment of the home. The loan company assured us as well as the title company. In fact the "Interspousal Transfer Grant Deed_ stated that no reassessment would be made under law, by the San Diego County Assessor. January 19, 2007 we got a supplemental tax bill from San Diego County Tax Collector for the reassessment of our home.

After we made some phone calls, the office of Change of Ownership explained that since my named was mentioned on the Interspousal Transfer Grant Deed (ITGD) they viewed it as a change of ownership for 50% of the property. I tried to explain that I was not the ex husbands former spouse and that the document would be incorrect. They explained that all we needed to do was to submit a correction with a cover letter and a new signature of the former spouse. [Here comes the blow from the other direction] When the ex spouse is asked to resign an ITGD he realizes that its due to a reassessment done on the home...he really is this shady. He then tells my wife (because he never wants to speak to me) that he'll resign the ITGD if she'll allow him to claim one of their children as an exception in order to file as head of household. In short he wanted $5000. Although I was considering convincing my wife to do this, I understood why she didn't due to his involvement as a father who lives the next block over. [Before I sound like we have to jump over to the divorce threads let me just say she never took a dime of his indexed pension after 20 yrs of marriage]

So here is my situation; the County says I'm a new owner on the property and the only way to dissolve this is to correct the original which cannot be signed due to extortion. Also, the county says that the time between when the ITGD was recorded and whenever this gets resolved will be tax owed by us even if they find in our favor.


Any help?

Kevin

 

[lcannister]

And the Atty versed in realestate matters that you hired says???

Whose name is on the title/deed now? Just hers?

 

[kevinblackwell]

Well you have me there. While we spoke specifically to the Mortgage and Title Company (with no Atty), we were assured...I'll stop, because I sound painfully ignorant. In anycase the title company said this was the correct doccument, correctly written, and it's been implied by an account rep that the title company's attys feel it was done correctly as well.

Both my wife's name and my name are on title. And this is why the County looked at it as new ownership of 1/2 of 50% of the property went to me and the other 25% went to my wife under the ITGD. The county said a correction would need to be done to make all go away with former spouses signature, but the former spouse is laughing about this and states he wants a child exeptionion afforded to him and has refused to resign any corrected documents.

Should/Could my name have been accurately/legaly placed on the ITGD, even though I was not his spouse? And if we had done such that at this moment only my wife's name was on title, would the property be reassessed if she did an ITGD?

R/
Kevin

 

[tranquility]

Obviously you should have stepped this transaction. [(Which you would have if you talked to a professional first.) Wife-you refi pay to ex, ex signs 1/2 to wife (no reasses), wife makes property joint (or whatever) to you (no reasses)]

Your problem is that husband has fullfilled his responsibilities under the divorce decree and you have this legal situation to unwind because of your error. Since ex has no duty to fix your error, his request for consideration to do so is not extortion.

I'd say you have to deal with ex. Sorry.

 

[kevinblackwell]

You are right about having to deal with ex. However, we are pursuing an appeal and a letter of explanation to the County Assessor. Our hope is that they understand the intent and might waive any further tax liability. Is there any liability on the part of the title company? They were working to fix the document, but due to ex's temperment cannot move forward. However, does this relieve them from any responsibilty?

And again, is the ITGD that was recorded accurate if it has me on it when I am not the former spouse of the grantor? (grabbing at straws, perhaps). And does it matter that my wife was married to me and it would become 50% my interest anyway?

Thanks for your help, Folks

R/
K

 

[tranquility]

However, we are pursuing an appeal and a letter of explanation to the County Assessor. Our hope is that they understand the intent and might waive any further tax liability.

Good luck with that. I don't think it will work, but you never know.

Is there any liability on the part of the title company? They were working to fix the document, but due to ex's temperment cannot move forward. However, does this relieve them from any responsibilty?

It depends on what was in writing. But unless there was some weird guarantees made, they are responsible for title--not the tax effects of title.

And again, is the ITGD that was recorded accurate if it has me on it when I am not the former spouse of the grantor?

You mean that deed you signed and recorded as accurate? No. It may be considered fraud if you knew it was not true. Clearly you have a defense so I wouldn't worry about it, but that straw is not going to help you. I'm not sure of the remedy though. The deed could be reformed to remove the incorrect portion, but to know for sure the entire deed would need to be reviewed.

And does it matter that my wife was married to me and it would become 50% my interest anyway?

No. If she refinanced herself it would be seperate property and not 50% yours. Only because you purchased it with money is the reassessment appropriate.