Featured News 2012 Tips for Transferring your House Title

Tips for Transferring your House Title

If you are going to transfer your housing title to another individual, it can get a little complicated. Typically, parents will transfer their housing title to a son or daughter if they decide to travel or buy a smaller home in a vacation area once they are empty nesters. If you want to give your house to a loved one in order to save him or her the trouble of renting from you, then you will want to transfer the title to their name.

You will also need to transfer your housing title if a stranger buys your home from you after you put it up for sale. You will need a written sales contract for this type of transaction. This is because of the implications it will have on your taxes. According to Investopedia, a piece of property isn’t just an asset but an annuity for your municipality. The property can generate revenue that is ultimately used for schools and paving roads in your town. You will want to have your sales contract in order to determine the how much tax needs to be paid as a result of the transaction.

If you are going to transfer your housing title to a stranger or a loved one, you will need to pay real estate taxes. Experts suggest that you pay all of these taxes in full at the time of the transaction. You will receive your tax bills far in advance so you can be prepared to save up and pay off the amount at the right time. If you are transferring ownership and have already paid the taxes that are owned on a property, then the buyer/transferee should reimburse you for any taxes that were covered beyond the day of sale. This is the same for taxes that are paid as arrears. If your buyer refuses to pay you back for these taxes then you can take them to court on the issue. When you transfer the title of your home it is highly recommended that you bring a real estate attorney to help. Having a legal guide on your side is invaluable, especially when it comes to complicated tax debates.

When you transfer your housing title, your new owner should also pay you back for any sewer fees and property assessments that were completed and carried over into the new owner’s time in the home. Unless you are able to make a title transfer on the exact day that all the bills are due, chances are that there will be some sort of money exchange that you will need to make. When you create a sales contract make sure to include your Homeowner’s Association if you apart of one. Your new buyer will probably need to pay a fee to the association, and you will want to notify them about it. Make sure to get a formal appraisal done before you create a contract so that you know that you are selling the home for an accurate amount.

The appraiser will also be able to deliver a clear title to the property. While these costs normally come out of the seller’s pocket, there are times that the buyer will be included. The buyer will probably need to pay for the lender’s title policy and the origination fee after the transaction. Once again, it’s wise to avoid doing this on your own. With a real estate lawyer on your side you will be better equipped to handle the legalities of transferring your house title and settle any money disputes between you and the new buyer.

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