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.
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.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.