How to Transfer Property from a Child to a Parent
A property transfer is the shift of a piece of real property -- a structure, such as a home, or land -- from one individual to another. Unlike selling real property, no money or services are exchanged for the transfer. Property is usually transferred to another individual as a gift or inheritance, and can also be transferred by court order as the result of a divorce or an unpaid lien. While most property transfers are from parent to child as a gift, a child may also transfer property to their parent.
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Things You'll Need
- Possession of property to be transferred
- Title free and clear of mortgage/liens/judgments
- Personal-identification documents
- $1
Instructions
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Pay off any mortgages on the property. You cannot transfer any property that carries an outstanding mortgage or loan secured against it. This includes equity loans, second mortgages and any other secured loan in which the property was put up as collateral. If you want to transfer a property that still has an outstanding mortgage, the parent must take over the mortgage or obtain new financing to pay off the existing mortgage and pay off the new loan themselves.
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Be sure the property is free and clear of all judgments, liens and any other restrictions that would otherwise prevent transfer. If you are unsure if there are liens or judgments against the property, you can visit the tax assessment office in the county where the property is located. You can also contact a title search company and have them find out if the title is free and clear, but they will charge a fee.
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"Sell" the property to your parent. Because real property is required to be exchanged for money or something of monetary value in return, there must be some type of financial transaction that occurs to transfer property from a child to a parent successfully. The most common way to satisfy this requirement is to simply "sell" the property for the price of $1, and provide the "buyer" with a receipt that states your full name, the date of the sale and the price for which it was sold. Keep in mind that your parent will actually have to give you $1 to completely satisfy this requirement!
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Register the property transfer. You and your parent will need to visit your county's Register of Deeds (also called Recorder of Deeds) office. You will both need to bring photo identification and the receipt showing the "sale" of the property. You may also be required to bring additional documents to record the transfer; contact the office in your county to see what their policies and requirements are.
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Tips & Warnings
Check with your local and state laws governing property transfers. Some states may require additional steps to transfer property from a child to a parent.
