Remove sibling from deed

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  #1  
Old 05-03-07, 09:39 AM
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Smile Remove sibling from deed

Hi,

My brother and I live in MD. We own a house, paid off, under both of our name. We want to remove my brother from the deed. One best way to do that, I think, is to use quit claim deed? If not, what other way is better? Is there any tax implication of the title transfer? We are not selling the house just tranferring the title.

Thanks.

Kwh3
 
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  #2  
Old 05-03-07, 03:23 PM
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A quick claim deed should be fine and I wouldn't think there would be any tax issues but...... while this can be done without a lawyer it is best to use one as he can advise about any potential problems.
 
  #3  
Old 05-03-07, 08:15 PM
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Smile Brother on deed

You are asking two distinct questions. One has to do with legal issues and the other income and gift tax issues.

As to the legal, a quit claim deed will work fine. Your brother will still have been in the chain of title however and could be held responsible for any possible title issues down the road. Best way to protect against that is to buy a policy of title insurance. See a local real estate lawyer.

As to the tax issues, conveyance of an interest property from one brother all to the other is a gift for gift tax purposes if no consideration ($) is given.

If the donee brother contributed anything toward the original purchase price, improvements, mortgage payments, this could affect how the gift would have to be reported to the IRS, if at all. It could also have an impact on basis for income tax purposes.

Go see with a real estate lawyer that also has tax knowledge or a CPA in your state.

Good luck!
 
  #4  
Old 05-06-07, 06:42 AM
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Thumbs up Quit Claim Deed

As long as you have a valid Notary to witness........and stamp the transaction between you and the 2nd party.....you have nothing to worry about. The document......via Quit Claim deed will stand up in court as a legal binding agreement validated by a Licensed Notary. Oh you also have to file the document (quit claim deed) at the court house or official records to establish complete ownership.

While investing in a quit claim deed packet........you might want to also buy a power of attorney packet as well. Come to an agreement with your brother about taxes after you do your own research via IRS helpline....Attorney or a CPA. Depending on WHO you decide to listen to.............write a brief but precise letter of intent concerning taxes........get it notarized along with quit claim deed.......just for peace sake.
 

Last edited by Inquizitive; 05-06-07 at 06:54 AM. Reason: I forgot something
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