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Dear Mr. Feichthaler:
A few years ago, my parents deeded the property we live in to my husband and I. After taking possession, we took out a home equity line. We decided to sell the property recently, and the title company says that my parents also need to sign the deed to the new buyers? The quitclaim deed they signed to us says they granted a "life interest," wasn't that enough to transfer title to us?
-- Cindy A.
Dear Cindy,
We often work with families who have attempted to convey real estate to family members. Although "homemade" deeds are often sufficient, wording is important. From the information provided, it sounds like your parents retained a remainder interest in the property. This means they (or their heirs) would take possession of the property once you and your husband passed away. This would mean that, from a legal perspective, both you and your parents still have an ownership interest in the property that would need to be conveyed to the new buyer.
A bank could lend money if it is confident your life interest is sufficient to secure its loan to you. However, my guess is the title company or the lender may have missed this restriction on the deed, otherwise they likely would not have consented to the loan (unless your parents signed off on it).
If this result was not intended, you may obtain a quitclaim deed from your parents to fully pass their interest in the property to you, which will allow you to convey the property the new buyers.
You may want an attorney to look at the situation to confirm the quitclaim deed is all that is needed.
Eric P. Feichthaler has lived in Cape Coral for over 33 years and graduated from Mariner High School in Cape Coral. After completing law school at Georgetown University in Washington, D.C., he returned to Southwest Florida to practice law and raise a family. He served as mayor of Cape Coral from 2005-2008, and continues his service to the community through the Cape Coral Caring Center, Cape Coral Historical Museum, and Cape Coral Kiwanis. He has been married to his wife, Mary, for over 20 years, and they have four children together. He earned his board certification in Real Estate Law from the Florida Bar. He is AV Preeminent rated by Martindale-Hubbell for professional ethics and legal ability, and is a Supreme Court Certified Circuit Civil Mediator.
Mr. Feichthaler can be reached at eric@capecoralattorney.com, or (239) 542-4733.
This article is general in nature and not intended as legal advice to anyone. Individuals should seek legal counsel before acting on any matter of legal rights and obligations.