Full question:
My parents are on the loan and deed for our house. They want to be removed from the deed. Do I need to refinance to create a warranty deed to remove them from property ownership. Doing this in case they become ill because we don't want this house used as an asset.
- Category: Real Property
- Subcategory: Deeds
- Date:
- State: National
Answer:
Typically, a deed may be used to transfer ownership from a
co-owner to the remaining co-owners without refinancing. Ownership is
separate from liability for payment of the loan on property. If
property is transferred from you and your parents to yourself only,
leaving them on the mortgage, they will no longer own the property, but
will be liable for payment of the mortgage.
In some cases, a mortgage has an acceleration clause, allowing the
lender to demand accelerated payments upon the happening of an event,
such as a transfer without the lender's permisssion. I suggest
contacting the lender to inquire about any restrictions applicable to a
transfer between co-owners.
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.
