Changing title to a relative?

Question

I would like to change the title on one my properties (condominium) to my relative. I still need to have a legal right to sell, rent out and make other legal decisions. Is there any way to do it? What is the process? What are the possible disadvantages?

Thank you in advance for a relevant answer.

Andrew Great · Answer

Marty, thank you for your answer. Can you recommend any good attorney in the area?

Andrew Great · Answer

Nicole, what type of attorney would you recommend to consult? Who specializes strictly in condominiums or something else?

Nicole Post · Answer

Andrew, you should put your properties in a land trust. It protects you and your property and you have all rights to it. The land trust protects you from any lawsuits as it doesn't show you as the legal owner. I am not sure why you are planning to put the property in a relatives name but you are not protected from losing it in a lawsuit. Trust me, I have been through this. Good thing it was in a trust. It was in an LLC and that didn't protect me either.

Marty True · Answer

I echo all that @Jeff B. said (especially the consulting an attorney) but without knowing the "why" for changing the title out of your name and what the relative's status would be in the property (does the relative know your strategy?), I can offer a technical way of doing what you want...

Deed the house to the relative; create a promissory note for (trivial amount) so that you can take "deed in lieu" when you want to sell - that solves the "so I can have right to sell".

For renting, just create a (master) lease with your relative where you rent it for $1 per month and have the exclusive right to sub-let - that solves the "so I can rent it out".

As far as "other legal decisions" - you'd have to be more specific but with the word "legal" in there, I refer back to consulting an attorney there.

Jeff B. · Answer

That's a change in ownership regardless of how the change is registered with the County.  Change in ownership CAN invoke a Due On Sale, WILL invoke a transfer tax and MAY cause a Gift Tax.

You better consult an attorney in your State.