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Can we gift land to my parents while still paying the mortgage?

Can we gift land to my parents while still paying the mortgage?

Q: Is warranty deed the same as deed?

A warranty deed is a specific type of deed that guarantees the grantor holds clear title to the property and has the right to transfer it. While all warranty deeds are deeds, not all deeds are warranty deeds. Other types include quitclaim deeds, which do not provide such guarantees.

Q: Who benefits the most from a quitclaim deed?

The primary beneficiary of a quitclaim deed is the grantee, who receives the property without any guarantees about the title. Quitclaim deeds are often used in situations like divorce, where one party transfers their interest in a property to the other. However, the grantee assumes the risk of any title issues.

Q: What is the difference between a property deed and a warranty deed?

A property deed is a general term for any legal document that transfers ownership of real estate. A warranty deed is a specific type of property deed that provides a guarantee that the grantor has clear title to the property and will defend against any claims. In contrast, a quitclaim deed offers no such guarantees.

Q: Which deed is the strongest?

The strongest deed is typically considered to be a warranty deed. This type of deed provides the highest level of protection to the grantee, as it guarantees that the grantor has full ownership and the right to transfer the property. It also includes covenants that protect the grantee against future claims on the title.

Full question:

My husband and I would like to give my mother and father a piece of land (29.25 acres). We owe around $63,000 on it. We want to give them a General Warranty Deed (for Christmas) that shows the property being in their name..conveyed to them by us (we have the General Warranty Deed in our name now). We still want to make the payments on it to the bank until paid off. Are we legally allowed to do this? If so, what are the steps I need to take to make this happen?

Category: Real Property
Subcategory: Sales
Date: 04/07/2025
State: Tennessee

Answer:

If there’s a mortgage on the property, transferring it may trigger a due-on-sale clause. This clause allows the lender to demand full payment of the loan if the property is sold, transferred, or gifted without their consent. Most mortgages contain such clauses, which require the original borrowers to remain the owners of the property while the loan is outstanding.

Before proceeding, review your mortgage agreement carefully. It may be necessary to contact your lender to get their approval for the transfer. If you do not obtain consent, the lender might enforce the due-on-sale clause and require immediate repayment of the loan.

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.

FAQs

What is proof of ownership of a property called?

Proof of ownership of a property is typically called a deed. A deed is a legal document that conveys title from one party to another. It includes details about the property and the parties involved. The most common types of deeds are warranty deeds and quitclaim deeds, each serving different purposes in property transfers.

Is warranty deed the same as deed?

Who benefits the most from a quitclaim deed?

What is the difference between a property deed and a warranty deed?

Which deed is the strongest?

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