Can my parents transfer 50% ownership of their cabin to me?

Full question:

My parents own a cabin in Kane County, Utah. They are paying a mortgage on it. They would like to transfer 50% ownership of the cabin to me using a quitclaim deed. Which would be the correct form for them to use to transfer 50% of the ownership. If that isn't possible, my parents and I do have a joint LLC for real estate investments in Nevada. Could we just put the Utah property into that LLC with a quitclaim deed?

  • Category: Real Property
  • Subcategory: Deeds
  • Date:
  • State: Utah

Answer:

Your parents can transfer 50% ownership of the cabin to you using a quitclaim deed. This deed would need to name your parents as the grantors and both you and your parents as the grantees. If the current deed indicates joint tenancy, all owners must consent and sign the deed. If there is a mortgage, be cautious of a due-on-sale clause, which may require the lender's consent for the transfer.

A quitclaim deed transfers only the interest the grantor has in the property, without warranties. It's often used among family members. To complete the transfer, the deed must be signed, notarized, and recorded in the county where the property is located.

Regarding the LLC, you can transfer the property into the joint LLC using a quitclaim deed, but ensure that this does not violate any terms of the mortgage. It's advisable to consult with the lender before proceeding.

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

A quitclaim deed transfers ownership interest in a property but does not remove a person's name from the mortgage. The mortgage remains in effect, and all original borrowers are still responsible for the debt. If you want to remove a name from the mortgage, you typically need to refinance the loan or obtain the lender's consent.