Signing over title deed vs. closing

[Kevin K.]

Hi BP,

I have a lengthy question regarding an estate. My grandfather passed away and the house is to be split between my mom and uncle 50/50.  My uncle wants to sell the house, my mom wants to keep it so she'd like to buy him out of his half.  Is it required to go through a closing process with title insurance? Or is there a means where the deed can be signed over in some way. I have an attorney telling me I'd need to go through the closing process and of course recommending title insurance, and I have a title company telling me that my uncle could just deed the property to my mom without needing to go through closing or the need for title insurance.  The property is still in probate if that makes a difference.

Thanks all for your help

Kevin

[William Jenkins]

There are two issues here that need to be addressed in order.  

1.  Since the property is in probate, your mother and uncle are not the owners of the property yet.  The property will need to go through the legal probate process before they will actually take legal ownership.  

2.  Once the property is legally owned by your mother and uncle, your mother could buy out your uncle with a simple quit claim deed.  You do not need a title company to do this, but you are also taking a risk (albeit relatively low) that their may be an error in the chain of title (i.e. probate was not done correctly, etc. etc.).  This could cause issues at some point in the future if your mother were to ever sell the property.

With the probate in the background I would probably lean towards transferring ownership through a title company.  It shouldn't cost that much to have them draft the transfer deed and issue a title policy to your mother.