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, you can transfer ownership from co-owners to the remaining owner using a deed without needing to refinance. Ownership of the property is separate from the liability for the mortgage payments. If you transfer the property solely to yourself while your parents remain on the mortgage, they will no longer own the property but will still be responsible for the mortgage payments.
Be aware that some mortgages have an acceleration clause. This clause allows the lender to demand full payment of the loan if the property is transferred without their permission. It's advisable to contact your lender to check for any restrictions on transferring ownership 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.