Full question:
My wife wants to sell a lot and house to our son but she wants to maintain control of improvements, sale, etc. She wants it in our son's name for reasons for tax purposes and payments of real estate taxes, etc. What do you recommend?
- Category: Real Property
- Subcategory: Sales
- Date:
- State: Texas
Answer:
The approach will depend on specific details, such as whether your wife wants to keep partial ownership and what type of control she wishes to maintain. One option is to include a restrictive covenant in the deed to limit how the property can be used or transferred. Another option is to create a reversionary interest, which allows the property to revert back to your wife or her heirs if it is not used as intended.
A deed is the legal document that transfers ownership of real property. It must describe the property, name the grantor (the person transferring the property), and the grantee (the person receiving the property). The grantor must sign and notarize the deed. For the deed to be effective, it must be delivered and accepted. Typically, possession of the deed by the grantee is assumed to indicate delivery.
There are two main types of deeds: a warranty deed, which guarantees that the grantor owns the title, and a quitclaim deed, which transfers only the interest that the grantor has without warranties. A quitclaim deed is often used among family members, as it does not guarantee clear title and the buyer takes the property subject to existing claims.
Joint tenancy is a form of co-ownership where two or more individuals share ownership. If one joint tenant dies, the surviving tenant automatically inherits the entire property. In some states, a conveyance to a married couple is presumed to create a tenancy by the entirety, which has unique characteristics, including protection from individual creditors.
Tenants in common own a property together but have separate interests that can be unequal. There is no right of survivorship, meaning that upon a tenant's death, their interest must go through probate.
For a life tenant, when they die, their interest may pass to designated remaindermen or revert to the original grantor or their heirs.
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.