Deeds are the most frequently utilized real estate tool that is essential to every purchase and sale of real property. A Deed is a physical legal document, which transfers ownership of real property from one person or entity to another. A deed can also be utilized to add one person or entity on title to the real property.
Deeds are utilized for many reasons. Many people will remove a spouse from a Deed when they go through a Divorce. Other reasons may be when parents want to transfer their property to their children. Loved ones are often added to Deeds to avoid probate in the event of the grantor’s death by making the grantees, “joint tenants with rights of survivorship.”
The most important concept to understand is that by adding someone on your Deed, you are giving them an ownership interest in your property. If you want to sell or refinance the property, they must give their consent. If there is a dispute with the property, this could lead to a partition action or the sale of a portion of the property. In addition, adding someone on your Deed opens the grantor and grantee to the possibility of liens being attached to the real property. Lastly, Deeds can have tax implications if transferred without paying fair market value or as a gift.
If you are considering adding a family member, spouse, or loved ones your Deed, please give us a call for a free consultation to discuss if this would be the best option for you and your loved ones.
