For various reasons sometimes people will want to add someone else to the title of their home or may want to buy with the loan in their name but then add their significant other to the title. There are several things to consider when doing this. Our good friend Kati Heller at McManamy McLeod and Heller has given us some guidelines regarding this. Take a look and as always, consult an attorney.
It is common in closings that a transaction may close in one name but the purchaser wishes the title to be held some other way after closing.
WIFE WILL BE ON TITLE BUT SHE WILL NOT BE ON THE LOAN.
If there is a lender involved, the first step is to check that they will allow this to happen.
If they do, then typically the lender will have the non-borrowing party sign both the Security
Deed and the Truth In Lending document. Therefore, the person being added to title will need to
attend the closing ceremony and both names should be listed on the contract.
AFTER CLOSING PURCHASER WISHES TO TRANSFER THE PROPERTY INTO
THEIR LLC/TRUST ETC
If there is a typical loan involved this is a violation of the due on sale clause contained in the
Security Deed. Many times the parties are willing to take that risk and if so, they will need to
have a deed prepared after closing, transferring the property to the name of the desired entity or
party. If the lender discovers this the lender can call the entire loan due. The attorney that
handled the closing will not typically be willing to prepare a deed under this circumstance.
If a deed is done in this situation, the person being added does not need to be present to sign the
DANGERS IN ADDING A PERSON TO TITLE
1. If the title is changed after closing without the lender’s permission the lender could call
the loan due under the Due on Sale Clause of the Security Deed.
2. If a name is being added to title it is advised to do a lien search on the name being added.
Any lien against that person will attach to the property. The property will not be able to
be sold without either paying or cancelling the lien.
3. The person added to title will have to sign any deed to further transfer or encumber the
4. Changing the name on the title could invalidate or reduce the coverage under the owner’s
title insurance policy.
COST TO ADD A PERSON TO TITLE
McManamy McLeod Heller, LLC charges $100.00 for each additional deed. The cost to
record the deeds at the courthouse are $10 for each first page and $2 for each additional page.