06 Sep What is the Best Way to Transfer Property Between Family?
There are many reasons you might decide to transfer property between family members. This involves the property title which has the names of all legal owners and the deed. In Illinois, a real property title applies to land, residential real estate, and commercial properties. You transfer title to real estate through a deed.
Below, we discuss the best way to transfer property to a family member.
Decide the Type of Transfer
A real estate attorney can help you determine the type of transfer such as a sale, inheritance or family trust. This is important because the type of transfer dictates how the transfer of title must be approached.
Make Sure Paperwork is in Order
Certain legal documents may be required to transfer the property. Your real estate attorney can advise you what paperwork is required such as wills, powers of attorney, death certificates, judgments for dissolutions of marriage, adoption documents or trust documents. This makes the process easier when everything is organized and in order.
Type of Deed
This is an important decision. While there are different types of deeds, a quitclaim deed is the best choice for family transfers. It is used to transfer property ownership to another party quickly and simply. The person receiving the property is the grantee while the person transferring the property is the grantor.
Transferring the Title
Title can be transferred using a quitclaim deed for family even though warranty deeds are more common. Warranty deeds are needed when protections for home buyers are required. In the case of family transfers where the parties trust each other, you don’t need the same protections as the risk that others have a superior title to the property is reduced. You don’t need to go through the same process as home sellers.
The Difference Between a Warranty Deed & QuitClaim Deed
As mentioned above, the quitclaim deed transfers title but does not offer protection or promise you as the grantor owns the property. While this type of deed is never advisable for a buyer, it works well for property transfers between family. Therefore, whether it is a transfer between parents and children, spouses or family members, this speedy approach is safe and effective. It also works for transferring a property into a living trust.
Why is the QuitClaim Deed Best for a Family Transfer?
Warranty deeds typically require title searches on a property which are unnecessary when you know the property is owned by you or other family members. It is the quickest way to transfer property between family members without the cost of a title search.
How Does a Real Estate Attorney Help with Property Transfers?
In addition to drafting the deed, your real estate attorney will assist with taxes and fees associated with the transfer of the real estate title according to the Illinois Department of Revenue and local ordinances. Your attorney will also complete the Illinois Real Estate Transfer Declaration and ensure the deed is properly filed with the appropriate county. He or she will advise you of any particulars related to your circumstances to ensure everything properly suits your needs.