Detroit, MI asked in Real Estate Law for Michigan

Q: My husband and I are considering financing a loan to help children purchase a home. When can we quit claim deed to them

We would like to not keep this home in our name just need to know how long before when we can turn it over to them or sign a quit claim deed?

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2 Lawyer Answers
Kenneth V Zichi
Kenneth V Zichi
  • Howell, MI
  • Licensed in Michigan

A: Don't even THINK about doing something like this without a lawyer reviewing the whole transaction.

Generally speaking if you're going to pay cash for a house, you can quitclaim it immediately to whomever you want.

BUT that is rarely a good idea.

Further, if you're borrowing money to complete the transaction, there will likely be a 'due on sale' clause that will prevent transferring the property, again making this a bad idea.

Sit down with a local real estate lawyer and discuss the WHOLE transaction to see if there might be better ways to accomplish what you're trying to do. This could explode into a disaster very easily!

--I am licensed to practice in Michigan only. This answer is offered for general information only and does not constitute legal advice nor create an attorney-client relationship. Please consult with a local lawyer if you have further questions.

David Soble
David Soble
  • Farmington Hills, MI
  • Licensed in Michigan

A: Good question. If you are providing your own financing ("seller financing") then you can help both you and your children by creating a land contract whereby your kids pay a monthly payment based upon a set sales price. Once the installment payments have all been made, you can then exchange the final payment for a deed. After about 6 months of payments, your children may even be able to refinance the home and pay your home sales price off.

Another approach is to see how much money down your children would need to finance the property via FHA or VA. You can then help them with a 'gift of equity' letter. Consult with a licensed mortgage lender to discuss the lending programs further.

How long you remain on title will be dependent upon either one of these financing approaches as well as how well your children qualify for a mortgage. The first scenario can take anywhere from 6 to 12 months; the second scenario in as little as 90 days. Visit for more information.

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