Posted by ZV on October 11, 2007 at 12:32:56:
Excise tax, yes, meaning sales tax or RE transfer.I was thinking about the “calling the loan” by lender, but hoping they will be patient, having a good record of payments and having my name on checks when we were making payments. Your thoughts?
Quit Claim to cash out Partner? - Posted by ZV
Posted by ZV on October 10, 2007 at 15:38:30:
I was wondering if there is a better option than having to Quit Claim a property to partner in order to cash him/her out? It’s a 50/50 partnership and one party wants out, so now we are getting the Quit Claim drafted, but not sure if we should mention the dollar amount in the QCD or just have a separate agreement for that and have the QC just transfer property with no $ mentioned? Don’t know which way is the best. Thank you! ZV
Re: Quit Claim to cash out Partner? - Posted by River City
Posted by River City on October 11, 2007 at 08:21:08:
I don’t believe you have given enough information in your question. Who is obligated to make payments on the property? Who is quit claiming to whom?
If I was obligated to pay a loan, I certainly would not quit claim my rights to the title until the loan was paid in full. The quit claim does NOT relieve anyone of debt. It only transfers title. I would not want to be paying for a debt for which I had no ownership no matter how much the other person assured me that they would keep the payments current. It makes no matter if the other party is family.
**** always happens.
Re: Quit Claim to cash out Partner? - Posted by ZV
Posted by ZV on October 11, 2007 at 09:31:32:
Thanks for your reply. I am the one getting the property from my partner, and he will remain on the loan but will quit claim property to my name, and we were thinking to draft the agreement where he will be relieved from future payments since I will be the only owner. But I was wondering if that’s the best option and easiest without going into extra refi costs? Although there’s still excise tax owned right? or is there a way to go around that somehow since we both are owners under the agreement that we have, but he is the only one on the title until he Quit Claims to me? Thank you.
Re: Quit Claim to cash out Partner? - Posted by dealmaker
Posted by dealmaker on October 11, 2007 at 11:37:46:
Well, you can’t use a quit claim to “relieve him of payments”. In fact once the lender’s computer talks to the county registrar’s computer he’ll probably get a notice that they’re calling the loan, due on sale clause!
Not sure what you mean by “excise tax”. Is that some state tax on RE transfers?
Your partner would be NUTS to do this without you refinancing to get all debt in your name. No way I’d do it in his shoes.
dealmaker