Situations can arise where the ownership interest in your property changes from the way it was originally acquired. Whether it is due to death, divorce, a parting of ways or the requirements of a new lender it sometimes becomes necessary to remove someoneâ€™s name from the title to a property. This is usually accomplished by the party exiting title executing a deed of conveyance in favor of the party or parties that will remain in title. Clearing the interest of deceased parties is an entirely different matter altogether and will not be addressed here.
In Case of Divorce
In cases of divorce, the best way to clearly show which party was awarded the property would be for the party not awarded it to execute a quit claim deed in favor of the party that it was awarded to. Many times the terms of the decree of dissolution and/or settlement agreement in the divorce case donâ€™t properly identify real estate holdings and it can be difficult to determine â€śwho got whatâ€ť.
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If title is held by two or more parties as tenantsâ€“in-common and one of them decides to sell or otherwise relinquish their interest they would execute a deed of conveyance (typically a statutory warranty deed or in some cases a quit claim deed) to the recipient(s) of their interest.
When a Party in Title Doesn’t Qualify For a Loan
Sometimes a party in title does not qualify for a loan and if the lender agrees to make the loan to the other title holder(s) a deed of conveyance (typically a quit claim deed) will be executed by the non-borrower to the borrowing party in title to the property.
Seek Legal Council
You should always consult with an attorney before signing any legal documents. You should also consult with Excise Tax Dept. personnel at the local county recorderâ€™s office to help you determine if excise (i.e. conveyance or transfer) tax will be due when the deed is presented for recording.