If the deed specifies that the brothers own the property jointly, then when either passes away, the remaining share of the house would go to the surviving brother rather than to the deceased's children. Typical in real estate sales, this type of deed requires a title search and title insurance to ensure that there are no liens on the property.Īnother potential hitch with using a quitclaim deed to own the family home together is what happens if one brother dies, Simasko says. So in this case, it would be a good idea for the letter writer to make sure he knows for certain that the family home is up to date on taxes and hasn’t been used as collateral for a loan.Īn alternative mechanism for transferring property is a warranty deed. Court records are filled with accounts of people who found out the hard way that there was a large unpaid tax bill or lien on the property. In fact, many people mistakenly refer to these as “quick claim” deeds, an understandable error since the words sound similar, and this kind of a transaction is known for its simplicity and speed.īut the lack of necessary due diligence is also one of the risks.“There are times when you don’t know what you’re getting,” says Kim Dula, a partner at Philadelphia-based accounting and advisory firm Friedman LLP.
They don't require a title search to check for outstanding liens and can be used by parents to pass property to children without having to go through probate. People like quitclaim deeds because they are easy to execute. The first thing someone in the letter-writer's situation should question, he says, is whether a quitclaim deed is the best way to go about establishing shared ownership of a piece of property. What are the tax implications, if any? -Rich P., New YorkĪ: That's a good question-but it raises a related question that might be even more important for you to ask, says Pat Simasko, a partner and attorney at Simasko Law outside of Detroit. Q: My brother is using a quitclaim form and adding me back to the deed for the house we grew up in.
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