Expert: Dick Dennis - 1/19/2008

Question
Hi,
  I am the only person on the title and on the mortgage loan of my primary residence.  I would like to add my sister onto the title without the need to change the loan status.  Can you tell me how I should proceed with this?  For the last couple of years, she has helped paid a portion of the mortgage by writing me a check every month; therefore, I believe it's right to add her onto the title.  By adding her name to the title, do you know whether this will trigger a reassessment of the property value?  Your assistant will greatly be appreciated.  Thanks


Answer
This should not trigger a reassessment of your property value, Gin, especially in today's market. I don't think any local government agency would be too anxious to do that. They would have to lower the value! So, I am sure they will turn a blind eye to your actions, if they would in the first place.

It's a very simple process of adding your sister to the title. You go to a title company or the company or agent that handles real estate closings and tell them you'd like to add your sister to the title. It's so simple, they really shouldn't have to charge for it.

Or, you can do it yourself: Look at the warranty deed (or grant deed) you received in the purchase of your property. Notice how they assigned the title to you. You simply substitute your name for the name of the people or company that conveyed the property to you. Then you substitute your name AND sister to where your name is in receiving the title. Everything else on that line is the same. Then take it to the county recorder and have it recorded. That's it.

However, be aware that your sister might be stepping into a capital gains obligation. Before you do give her any interest in your property, I suggest you talk to your local tax expert to make sure you are doing it right. I do wish you well.

Dick Dennis, dixiedee13@aol.com