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What is the correct process

I want to hand my mortgage over to my daughter and her new husband. I will be moving into an apartment and they will now be living in my home. Do i HAVE to actually SELL then house? can I just gift it to them? by bethbm99 from Orange County, California. Dec 21st 2010 Reply


Dan Paladin (dpaladin)
#1 ranked lender in California - 604 contributions

You can gift the home to her. Preliminary change of ownership form is completed(Calif.) as well as a quit claim giving them title. You may want to check what forms are required for your state. Any title Company can help you with the process or attorney if you are in an attorney state. Happy Holidays!!

Dec 21st 2010
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Hans Bruhner (Hans Bruhner)
#132 ranked lender in California - 119 contributions

I agree with the other two answers. One thing to keep in mind is that if you get completely off the title then the holder of your mortgage could call the note and force payment in full of that mortgage. You would not want to do that. In California you can add them to the title and there should not be a tax consequence because it is parent to child. Eventually they can refinance but the lender may be concerned about the continuity of debt. My advice is to add them to title and have them start paying the mortgage directly as well as property taxes and insuarnce and keep a good paper trail of these items.

Dec 21st 2010
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Rick Pelleriti (RickPelleriti)
#363 ranked lender in California - 59 contributions

If the home is being recorded into the name of your daughter, depending on the county, this may trigger a transfer tax. I would STRONGLY advise you consult a Real Estate attorney, and also talk to the title company about the transfer tax question.

Dec 21st 2010
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