Q: Can my mom sign over the mortgage on her condo to me or do I have to buy it from her?
My mother purchased a condo for me back in 2008 with the intention that I would eventually take over the mortgage. Since than I have been giving her the money to pay the mortgage. Now she is getting ready to retire and wants to get the mortgage out of her name. Can this be done by transfer or do I have to actually buy the condo from her? If I have to buy it, can it be sold for the remaining cost on her mortgage (right now its about 110,000)?
A:
For your mother to get off the mortgage and for you to become the mortgage obligor you need to be the owner of the property. She can gift it to you or sell it to you, as the two of you prefer. If she gifts it or sells it for less than fair market value (which would still be a gift), there are potential gift tax consequences, which you would need to review with a lawyer or an accountant. In all likelihood, this could be claimed by your mother as part of what is called a "lifetime gift exclusion," so there would be no tax actually owed. However, a gift tax return should still be filed. As part of the transaction you would have to apply for a new mortgage, which would be used to pay off the existing mortgage in your mother's name. There would be no transfer tax because this would be a conveyance from mother to child.
You would be best advised to consult a lawyer to help you.
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