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50% of homeowner equity lost in a flash

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  • 50% of homeowner equity lost in a flash

    BY ILYCE GLINK, TUESDAY, MARCH 17, 2009.
    Inman News

    Q: I purchased a home in 1993 as a single man with a mortgage in my name only. In 2001, I paid off the mortgage. Not being married, I signed a quitclaim deed transferring ownership with right of survivorship to myself, a single man, and my partner, a single woman.

    I did this on my own at the county clerk's office -- therefore it is registered and valid on initial examination. I did this for no reason other than I wanted her to have a place to live if something were to happen to me.

    Now we are splitting up and she is demanding I pay her half the value of the house. She is doing this out of spite, as she knows she doesn't deserve it. My friend had a real estate license and claims that I may be able to contest the legality of the title/deed transfer based on a couple of facts, namely that the transfer was done in error.

    I didn't know what I was really doing, as my intent wasn't to give her half the house but to give her a place to live if something happened to me. I just went to the clerk's office and the lady at the counter told me to fill out the quitclaim deed.

    There was no consideration for the interest in the property from her to me. There was no acceptance from her, in writing, since she didn't know I was going to do it. Do I have a case? Does she?


    A: You were very foolish to file a quitclaim deed without consulting an attorney and fully understanding what you were doing. If your quitclaim deed was legally filed, you may have given half of the value of the property to your friend.

    There were so many other ways to have handled this situation without resorting to a quitclaim deed. You could have prepared a valid will in which you created a life estate for your lady friend. After your death, she would have had the right to live in the property until her death or until she chose to move. Then, your heirs would have received the property. Or, you could have just given it to her upon your death.

    Read more...

    Cheers

    Marc
    Free business resources - www.BusinessBlogsHub.com
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