Q&A: Gifting Property

Q.  My wife and I own a piece of property which we would like to give to someone else but we are not sure how to go about doing that.  I was told it is a simple procedure and does not require an attorney.  Can you direct us to what we should do?

A: The process is actually very simple to complete though you really do need to consult an attorney about the implications of such a move since once it’s done, it’s done.

To transfer title to someone else, to ”gift” your real estate property to them, can usually be facilitated by completing a “quit claim deed” which identifies you as the owner of the real estate, provides the address and legal description of the property to be transferred and the name of the party to whom you are giving it. Most often this is a one page document, you can get a copy from many large real estate offices or an office supply store. 

The form will need to be notarized and then recorded in your local recorder’s office. A small fee will apply ($35-$50). Please understand that you have now transferred ownership rights in the property. This has NO impact whatsoever on who is responsible for making the payments on this same piece of real estate. Having said that, this is not a viable option for dividing up property in a divorce if the objective is to change who is responsible for the mortgage. Refinancing the home is the way to accomplish that objective with one party taking out a loan to pay off the old mortgage which simultaneously changes the ownership to only one party.

Again, talk to an attorney about this very important real estate transaction. Don’t let the fact that it is simple and commonplace trick you into believing it does not have major consequences.

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