Life is constantly changing. People die, get married, get divorced, start a business. Many of these changes can have an impact on you personally, but they can also trigger a change in property ownership. That’s why the way in which you hold title to real property is so important.
While there is far more to know and think about when it comes to transferring title to real property than we can put into a short blog post, (hence, you should seek the advice of experienced real estate counsel) here are just a few things you should think about when you are making a real estate transfer.
- Get a Title Guarantee.
The most important part of any real estate transfer is the title being transferred. In short, you want to transfer (or receive as the case may be) good title. One of the best things you can do to ensure that you are transferring or receiving good title, is to purchase a Title Guarantee. A Title Guarantee is provided by a title company. It is a full report on the subject property. A Title Guarantee provides information on the ownership of the property, any defects in title, or encumbrances on the property. This ensures that the person transferring title has a valid right to transfer title, and that the title received is absolute.
- Consider the Tax Implications.
Property transfers can have a number of tax implications and/or impacts. One of these is the transfer tax. Many states, including Georgia, require that a transfer tax be paid upon the sale or purchase of a home. Typically, it is the seller who pays the transfer tax. There can be situations where the buyer pays the tax, however, in most typical situations between individuals, the seller pays the tax.
There are a number of property tax exemptions and property not subject to the transfer tax as well. These include:
- deeds confirming already vested titles,
- transfers from an individual to a company
- partition deeds,
- transfers to the first transferee after a foreclosure, and
- chapter 11 bankruptcy transfers.
- Choose the Correct Deed for the Transaction.
Another important part of a real estate transfer to consider is which type of deed to use for that particular transfer. There are different types of deeds. Some of these include:
- Grant Deed
- Gift Deed
- Trust Transfer Deed
- Interspousal Transfer Deed
Knowing which deed to use for which transaction is key to a successful real estate transfer and it requires in-depth knowledge of property ownership rights and tax implications. So before you make that transfer, consult with experienced real estate counsel.
Experienced, Affordable, Real Estate Counsel in Georgia.
As real estate attorneys located in Cumming, Georgia, the attorneys at the Law Offices of Mark Weinstein, P.C, have experience in all aspects of real estate. We serve Atlanta and the surrounding counties. Call us at: 770-888-7707. Or you can contact us here.