I am the grantee. My sister is trying to give away some interest in the house to me. I've heard different opinions on the use of quickclaim deed vs warranty deed. It seems to me that a quickclaim deed would do the work, but warranty deed still offers the best protection.
Please keep in mind that while she's my sister, as a grantee, I would still like the best protection possible as my brother-in-law is still in the picture. Marriage & in-laws could be tricky, and we want everything to be just right no matter what happens. I have helped my fair share with the house(sometimes monetary, but often through other ways.)
My sister would still remain the one paying for mortgage. We are hoping with the state's tax exemption-gifting, this title transfer could be entirely tax-free. Please help.
Either a quitclaim deed or a warranty deed can be used to convey an interest in property, but from the context of your question I am not sure the "protections" that come with a warranty deed will really give the kind of protection you are looking for. Either way, transfer of an interest in the property could violate a "due on sale" clause in the mortgage and cause the entire mortgage to come immediately due. Also, if the transfer is a gift, there is are state real estate excise tax documentation issues, and federal tax issues depending on the size of the gift. One other issue--if your sister is married and living at the house, or if it's community property regardless of whether she is living there, she can't convey an interest without having her husband sign as well. There are too many variables here; you should consult and attorney to get advice on how to complete the transaction.
No attorney-client or confidential relationship is created through this communication. Answers to questions are for educational purposes only. I only have the facts you gave me, and without a more complete consultation there could be other facts I don't know that could change what legal principles apply. Your issue may be time sensitive and may result in loss of rights if you do not obtain an attorney immediately.
The quitclaim deed is most often used for a conveyance from a family member. It conveys the same quality of title as a warranty deed. It conveys all the ownership of your sister the same. However, it does not include a promise by your sister that her title was free of encumbrances, or even that she is the owner, and she does not promise to defend your title against title matters that may have been granted by her or attached as an involuntary lien during her ownership. Gift deeds rarely include such promises that are usual in sales. The deed form can be downloaded in editable Word format as "LPB 12-05 (i)" found at http://www.wsba.org/Licensing-and-Lawyer-Conduct/Limited-Licenses/Limited-Practice-Officers/LPO-Forms.
If your sister's husband lives in that property, he will have to join in the deed even if he is not an owner. It is due to homestead law, not community property law.
The Department of Revenue requires an Excise Tax Affidavit to be signed by your sister and you, swearing the facts are true. The form can be found at http://dor.wa.gov/docs/forms/realestexcstx/realestextxaffid_e.pdf. You will need to complete the Supplemental Statement [http://dor.wa.gov/docs/forms/realestexcstx/realestextxspplmtlstmt_e.pdf] too to explain that it is without consideration and that the sister will continue to make payments on the mortgage. If you are assuming any payments, that is considered consideration and there will be tax upon the amount.
If you are concerned about the quality of the title, whether your sister owns the title, whether there are liens attached, whether her conveyance is valid, whether her husband has rights, you can purchase a title insurance policy that will protect against those risks.
There is no attorney-client relationship established between me and other persons who may post a question or answer. My opinions are without investigation of the facts, based on presumptions. My opinions may not be relied upon as the opinion of my employer or used against the company in a claim.
Yes a warranty deed can be used to transfer partial title to a family member. Yes, gifting title can be tax free (depending upon the value).
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