Full question:
I need to know how to transfer a deed from parents to children. My parents owner financed their house which is not paid off yet. They want to transfer the deed to my sister and me. Would my parents be considered the grantor or the person that financed the home?
- Category: Real Property
- Subcategory: Deeds
- Date:
- State: Texas
Answer:
The grantors in a deed transfer are the individuals named as owners on the current deed. In your case, your parents would be the grantors, as they own the property, despite having financed it. The lender who financed the home does not hold ownership and is not considered a grantor.
To transfer the deed, your parents need to create a deed that includes the following:
- A description of the property
- The names of your parents as grantors
- The names of you and your sister as grantees
The deed must be signed and notarized by your parents. It is also necessary to record the deed with the county recorder's office where the property is located. This recording makes the transfer official and provides public notice of the new ownership.
There are different types of deeds, such as warranty deeds and quitclaim deeds. A warranty deed guarantees that your parents own the title and that there are no undisclosed liens, while a quitclaim deed transfers whatever interest they have without warranties. Since this is a family transfer, a quitclaim deed is often used.
It is important to note that if your parents have a mortgage on the property, they should check with the lender. Some mortgages have due-on-sale clauses, which may require the loan to be paid in full upon transfer of ownership.
For more specific guidance, consider consulting a real estate attorney or a local legal expert.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.