If you want to transfer real property as a gift where consideration is "love and affection," but you'd like to protect the grantee with the covenants of a warranty deed, may you add in the recitals warranty deed language in a gift deed? Alternatively, if the starting point is a warranty deed, may you add gift language and use "love and affection" as the consideration, also including that the gift is freely granted without duress, etc.
Property is being professionally appraised to establish FMV for gift tax as well as grantee basis.
Commercial Real Estate Attorney
I agree with Stuart, but it is in your best interest to approach an attorney to do the Deed and the other recording documents. You will need to complete the accompanying affidavit of consideration and the seller's exemption, since you are gifting the property, and NJ does exempt taxes for transfer of property for nominal consideration.
You are much better off transferring the property for nominal consideration, while having the parties understand that the nature of this property is for a gift.
This response is for informational purposes only and does not create or constitute an attorney-client relationship.
I believe that you can do it either way. ALthough I strongly urge that you have a Real Estate attorney do the drafting, in connection, with an attorney skilled in Estate Law.
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