How to Transfer a Deed to Family
People often come to us asking about the easiest way to transfer a deed to family members. Transferring property can be done before, in anticipation of, and after the death of a family member in any number of complicated ways.
A New York real estate attorney will be very helpful to you in navigating and completing the process. Here are some of the basics about transferring a deed to family.
Understanding a Deed
A deed is a legal document signed by its holder and granting ownership to an asset, namely property. Some deeds may include several conditions on the transfer of the title, which a real estate law firm will be able to unpack and explain for you.
A deed differs from a title and is essentially the vehicle necessary to be transferred to family. New York, New Jersey, and every other state in the U.S. requires deeds to real property to be filed with the government. An actual title may not even exist in any tangible form, as it is the concept of property ownership. The deed is what provides physical proof of ownership.
The individual transferring the property is called the “grantor,” and the individual receiving it is called the “grantee.” Any amount of money given in exchange for the property is called the “consideration.”
If a deed has not been written, notarized, and entered into the public record, the process of transferring it may be met with myriad legal challenges and delays, so be sure to do things right from the get-go and get the process started immediately to help avoid any obstacles.
What Types of Deeds Are There?
Several types of deeds exist in New York, depending on what rights are being transferred and who is transferring the rights. Some of the most common types of deeds include:
Warranty Deed
A warranty deed contains the same guarantees as a grant deed, and states that the grantor has not caused any title defect during the period of owning the property. This provides the most significant amount of protection to its holder.
Bargain and Sale Deed
A bargain and sale deed does not include a covenant, therefore offering very little protection to the grantee. The grantor implies they have title to the property, but if it turns out they do not, then the grantee cannot sue the grantor.
In addition, individuals can opt for a Bargain and Sale Deed with Covenant (also known as a Limited Warranty Deed) where the grantor promises they have title to the property and the property is without any encumbrances.
Executor’s or Administrator’s Deed
An executor’s or administrator’s deed offers the same protection as a Bargain and Sale Deed with Covenants and can be used to transfer property in a deceased person’s estate to their designated heirs.
An executor’s deed is used when the decedent dies with a will. Conversely, the administrator’s deed is used when the decedent dies without a will.
Quitclaim Deed
A quitclaim deed releases an individual’s interest in a property without explaining the nature of his or her interest or rights. A quitclaim deed does not contain any warranties or promises of that person’s interests or rights in the property, providing the grantee with the least amount of protection. These are most used in non-sale situations, such as when you want to transfer a deed to family members.
If you own a house and legally complete a quitclaim deed to transfer your ownership to your son or daughter, your entire interest in the house will transfer to your child or whichever family member you have designated.
Quitclaim deeds carry a higher level of risk when purchasing and transferring a property from a stranger, since they do not come with any guarantees or warranties. However, that risk evaporates when the transfer occurs between trusted family members. When transferring a deed to family, quitclaim deeds are convenient and efficient.
While these are the primary deeds used in real estate transactions in New York, plenty of customized deeds are drafted to meet the needs of the buyer and seller. If you have questions pertaining to deeds, please contact our real estate law firm.
How to Transfer a Deed
The first step is to create a new deed. Each kind of deed has a different legal status.
To change a deed in New York City, you will need a deed signed and notarized by the grantor. The deed must also be filed and recorded with the Office of the City Register. Transfer documents identifying if any taxes are due must also be filed and recorded with the City Register. The transfer documents for New York City can be found on the NYC ACRIS website.
Once prepared and complete with notarized signatures from the grantors and grantees, the documents can be filed in person or online, with taxes and fees being paid before any recording.
Talk to a New York Real Estate Firm
If you need to transfer property to family members or are interested in teaming up with a real estate attorney to develop an estate plan that meets your needs and protects your interests, Levin Law Group is here to help.
New York and New Jersey real estate law firm Levin Law Group provides the highest quality legal advice and counseling to our clients. With 21 office locations to serve you wherever is most convenient to you, we offer extensive knowledge and experience in business law, civil litigation, construction law, elder law, probate & estate administration, real estate law, and wills, trusts & estate planning. contact us today to schedule a consultation.