Transfer on Death Deed

7 Replies

Hi, if a sibling was awarded a Transfer of Death Deed how do they transfer it to another sibling? Quit Claim Deed?

Once someone owns a property it doesn't matter how they acquired it. The process to transfer it to someone else is the same. A warranty deed would be preferred.

After the death that triggered the TOD, there should have been a new deed created showing the beneficiary of the TOD as the grantee. After that, the new owner is free to do whatever they want. You probably want an attorney involved. And there may be tax consequences for these transfers.

@Jon Holdman

Thanks Jon, I got a hold a lawyer to get some local advice as you advised. Learned that once the death certificate is on file at the Register of Deeds Office the DOT deed becomes legal. I always thought there had to be public record of any deed for it to be legal, but the lawyer told once a person signs a deed it becomes legal and it is just on record for the world to see.

The tricky part is since there is no money being transferred nor closing, the title company will not provide title insurance. One would pay them $150 to do a "information only" search for owners and encumbrances that could take two weeks. Makes me wonder if one can save the money and call the register of deeds office themselves since how do they know if a recent loan has been taken out prior to deed transfer and/or after their search.

A warranted deed is worthless if the person issuing it is 'judgement proof' has nothing to sue lawyer tells me but a better than a QCD I guess.

Timing the title search and deed signature is still the question. If a loan is taken out in the time frame between the two, the new owner is left without an asset and not responsible for any debt they did not sign for lawyer says. I think the search may be just as good once the deed is signed.

Deeds are effective when executed, not filed, however the interest is not perfected until it is filed, meaning you need to perfect that interest before you can make your claims to title, to sell or encumber it.

If a loan/lien is against the property you inherited you aren't "obligated" to pay the obligation, you can refuse to pay and the lien holder will take the property. You won't get tagged with a foreclosure from a credit aspect but you will be listed as to the action, so the effect might be much the same and you'll lose the property.

A warranty deed is not worthless if the transfer was insured, with title insurance, that has no bearing on the grantor's financial standing. Use a Warranty Deed as Jon suggested. :)

Okey doke will do Bill, thanks, not sure I spelled that OK-e-doke-e right ;)

Got another question....Title company wants $150 to do an 'information only' search for owners and encumbrances. What do they do other than look at what is recorded at the Register of Deeds which I can do. How would they know if someone takes out a loan that is not recorded yet or do they have another place they search I can not?

I'm not getting the "they won't issue title insurance because no money is changing hands" aspect. I've gotten title insurance on properties I've bought at foreclosure, and through private sales, for an amount far exceeding the purchase price, and afterwards, not at the time of sale. Check with a different title co.

I checked with another title company. Turns out I misunderstood, they will not issue insurance if there are any owners or encumbrances until the debts are settle at closing.

Also, besides the ROD there is district court clerk who can check a name (not property) for liens. Only other possibility is loans with the house as collateral that are not recorded. Guess it's a good idea to get some insurance.

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