What Happens When You Add Someone to a Deed?

When you add someone to a deed, you are changing the ownership of the property from one owner to another. This can be for a variety of reasons, from marriage to gifting. There are several important considerations to keep in mind. If you are considering adding a person to your deed, you should speak with an attorney to ensure that you are aware of the potential consequences.

Adding a loved one to your deed can be a fairly simple action, but there are several risks involved. These include the possibility of divorce, bankruptcy, and the loss of the home. The best way to protect yourself is to speak with an estate planning attorney before adding a loved one to your title. They can help explain your rights and the possible legal consequences of adding a child or sibling.

Adding a spouse to your deed can have an impact on your mortgage. Most lenders incorporate due-on-sale clauses into their mortgages. In this situation, the lender can call in the loan if the homeowner defaults on their home obligations. This can result in the sale of your home or a foreclosure. Fortunately, it is possible to avoid a foreclosure by adding a spouse to your deed.

Adding a family member to your deed also gives them the same bundle of rights as you. However, there are other unforeseen consequences. For instance, your lender may not be able to sell your home to a third party if the owner has a lien on the property. Other potential complications include creditors and government liens. You will need to speak with your lender about this and your options.

Adding a brother or sister to your deed can also result in creditor problems. Especially if they have tax liens, you could have trouble getting a loan on your home if you have added a brother to your title. Additionally, a brother or sister can legally sell a portion of their share of your property to a third party.

Adding a friend or family member to your deed is often done for a variety of reasons. Some people add a person to their title because they have a child who is a legal beneficiary. This can be a relatively straightforward process, but you should seek out the advice of a qualified real estate lawyer. It is important to remember that the IRS limits gifts to $15,000 per year, so you should consult with an estate planning lawyer if your gift exceeds this limit.

Another common reason for adding a loved one to your deed is to provide a home for a person in need. Many individuals who are receiving Medicaid will have to qualify for a lower interest rate mortgage if they have a joint ownership with a spouse. Adding a family member to your deed allows you to do this without having to pay the full cost of the home.

Changing your house ownership is also necessary if you plan to sell to a new owner. Depending on the laws of your state, you may be required to change the deed to show the new owner’s name. Also, some states will require witnesses to sign the deed.