San Gabriel, CA asked in Real Estate Law and Tax Law for California

Q: My sister and I are joint tenants of a home. I am in need of money and am thinking of doing a cash-out refinance for

an amount to cover for my share of the home and quitclaim the home to my sister. Should the cash-out refinance and quitclaim occur at the same time? Do I have to pay any taxes for this quitclaim? Thank you.

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1 Lawyer Answer
Yelena Gurevich
Yelena Gurevich
  • Studio City, CA
  • Licensed in California

A: You really need to consult with a real estate attorney. There are many facts missing to answer your question in this forum. (i.e. is your sister on board with refinancing? do you both, and/ or each, qualify to refinance? who lives at the property? how much are you planning to cash out? and many more)

In terms of the quit claim deed, it will likely cause a reassessment of the property taxes, depending on how long ago you obtained the property and the current tax basis. You are likely better off having your sister refinance on her own and buy out your share.

You and your sister should schedule a consultation with an attorney to fully review your options. You may also want to consult with your tax accountant.

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