What forms are needed if I am gifting my interest of my home to my daughter?
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Answer:
A deed is the written document which transfers title (ownership) or an interest in real property to another person. No consideration is required to make the deed effective. The deed is necessary to transfer title to land even if it is a gift. It has no effect, and title does not pass until the deed has been delivered. The recording of the deed is not required to make the deed effective to pass title between the buyer and the seller. However, recording is necessary so that the public will know that the buyer is the present owner.
There are two basic types of deeds: a warranty deed, which guarantees that the grantor owns title, and the quitclaim deed, which transfers only that interest in the real property which the grantor actually has, without specifying the interest in any way. The only type of deed that creates "liability by reason of covenants of warranty" as to matters of record is a general warranty deed. A warranty deed conveys specifically described rights which together comprise good title. The grantor warrants that the title is good, that the transfer is proper, and that there are no liens other than stated in the deed. The grantee can sue if the warranty is breached. A quit claim deed contains no warranties and the seller does not have liability to the buyer for other recorded claims on the property. The purchaser takes the property subject to existing taxes, assessments, liens, encumbrances, covenants, conditions, restrictions, rights of way and easements of record. However, a person who obtains a mortgage is still liable for mortgage payments after executing a quit claim deed on the property securing the mortgage. The quitclaim is often used among family members or from one joint owner to the other when there is little question about existing ownership, or just to clear the title. If a deed is intended to be a general warranty deed, it should contain a phase specified by state law such as the phrase "conveys and warrants". These words, called operative words of conveyance, carry with them several warranties which the grantor is making to the grantee. An example of operative words of conveyance in a quitclaim deed is "convey and quit claim."
A gift deed is any type of deed where the consideration is not monetary, but is made in return for love and affection. It is a document which transfers property to another as a gift. Such a deed is often used to present someone with a gift. Transfer of a gift deed can be reported as a gift for federal tax purposes.