I co-own 2 condos with a friend.

Asked by Flynariel, Sunnyvale, CA Fri Jun 26, 2009

I wanted to sell either one of them since 2006 but my friend kept refusing to sell. Now I just want to relinquish my claim on both condos without asking for my share of the properties. How do I go about taking my name off the titles?

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5
Grace Hanamo…, Agent, Cupertino, CA
Fri Jun 26, 2009
Hello Fly and thanks for your question.

Carl is absolutely correct that you may execute and have recorded a quit claim deed and remove your name from title if all parties agree. As you and the co-owner are on title and loan for both properties, the lender will be involved in releasing you from the title and loan obligations, and this is usually something the lender is reluctant to do, especially if the co-owner is unable to qualify for the payments without your income.

Since your homes are located in Sunnyvale, surely, you have some equity left in the homes, and walking away from the properties may be an unwise situation without proper legal and financial counsel. Also, if you are both having problems resolving your differences, perhaps it would be better to have him "buy you out" or, at the very least, agree to separate the two properties between the owners. In other words, have both properties appraised and then determine how each will buy out the other to obtain--in the end--one property per owner. Again, talk with an attorney to explore your options before dumping your valuable assets.

Good luck!!

Sincerely,
Grace Morioka, SRES, e-Pro
Area Pro Realty
Sunnyvale, CA
0 votes
Keith Sorem, Agent, Glendale, CA
Fri Jun 26, 2009
Fly
I don't know the details but I encourage you to talk with an attorney AND a CPA.

Try to figure out your options. If you walk away aren't you losing your investment? Somebody's got to own it.

Loan modification, short sale, rent them out, look at all options and get competent advice from professionals that are aware of ALL the pertinent facts.
0 votes
Earl Girbovan, , Mountain View, CA
Fri Jun 26, 2009
Hi Flynariel,

This is not necessarily an easy process. You can use a quit-claim deed to deed your ownership over to your friend. A Title Company can help you with this, since you need to get things recorded properly to prevent any issues in the future. The other questions is who is on the loan for the property? If your name is on the loan, you need to get it off, otherwise you are still liable for the payments, regardless of if you name is on the deed or not. Typically, this means that you friend would need to qualify for a new loan with just his/her income. You should also talk to your tax person to see what ramifications there may be on taxes, especially if you have been claiming depreciation.
0 votes
The Medford…, Agent, Fremont, CA
Fri Jun 26, 2009
Flynariel:

Normally, you would get a quitclaim deed that would remove you from title. However, all parties need to agree. If you have a loan secured by the property, the lender has to agree as well – that is the point where things usually start to get a bit sticky.

A title company can prepare the quitclaim deed for you if all parties including any lender are in agreement.
Web Reference:  http://www.carlmedford.com
0 votes
Aileen La Bo…, Agent, Los Altos, CA
Fri Jun 26, 2009
Hi Flynariel,
I think you need to seek the advice of an attorney.
There are many, many variables that a Realtor is not qualified to advise upon.
Is there any mortgage debt on the properties? Are there any other liabilities or liens? You need to make sure you're protected from any further encumbrances.
If you contact the Snata Clara County Bar Association, they will give you a referral for a free time-limited consultation with an attorney who many be able to advise you better.
Good luck,
Aileen
0 votes
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