How do I draw a bill of sale selling a home to the primary owner, so that he may assume the loan?

Question

I'd coowner of a home.  I am the secondary coowner.

Nathan Wagner · Answer

To transfer ownership of a home, you use a Deed, not a bill of sale (unless you are transferring shares in a co-op). It sounds like you should be asking the lender this question. Many mortgage loans require the lender's approval for someone to assume the loan. The lender might even allow him to assume the loan without any transfer of ownership, because he is already an owner.

Richard Blasco · Answer

A bill of sale is used to transfer title to personal property, not real property.  If you are a co-tenant (i.e. co-owner) of a property and in your proposed transaction are not transferring your title to your co-owner until you are paid in full for the sale of your interest, or until the primary loan from the primary lender is paid off, you can use a land sales contract.  The transaction can also be structured using a grant deed with a deed of trust securing: (i) the installment payments to you for the sale of you interest: and, (ii) the co-owner's obligation to make the payments on the primary loan.  Real estate transactions involve many issues, such as title, collateral, title insurance, general insurance, real property taxes, income taxes, etc.  You do not under any circumstances want to screw up the title to the property, nor to assume unreasonable risks.  An experienced real estate attorney would need to have more facts than are set forth in your question, before he or she could suggest alternative ways to structure your transaction.  As a result you should contact an experienced real estate attorney.

Michael McFarland · Answer

The holder of the loan needs to approve any assumption in most contracts, unless it clearly provides that it is freely assignable.  If all that's needed is to have your name off the property ownership, you can accomplish that with a quitclaim deed.  Have a title company or attorney prepare the deed, however, to make sure it's done correctly.  You should also make sure that you will be relieved of personal liability upon the other party's assumption of the loan.  You don't want to give up your ownership interest and still have liability on the contract.

Brian Haggerty · Answer

You probably can't. First, a bill of sale is not for real property, you need a deed. If you are working with the mortgage company, they will want to see an earnest money agreement and contract of sale; if you are not working with the mortgage company, then you risk violating the "due on sale" clause that the mortgage certainly has, which makes the loan payable in full if you transfer the property. With real property, there is probably a lot of money on the table. Get legal representation.

Thomas Edward Gates · Answer

You can transfer your interest in the home by a Quitclaim Deed. Regardless, you will still be liable for the loan payments since you are on the loan contract.

Norman Green · Answer

Deed

Dara J. Goldsmith · Answer

That is a complex question. You must first review your promissory note to see if the loan may be assumed. Morally. Grant bargain and sale deed or quitclaim deed is used, not a bill of sale. You should use a title company in Nevada to assist you.  If you still have questions seek legal counsel.

Diane Drain · Answer

See a good real estate attorney.

Mark T. Peters · Answer

You need to prepare a deed and record it.

James Weiner · Answer

This could be easy or could be hard. The easiest thing to do is to quit claim your interest in the home to the primary owner. Further that will allow him to pay the debt. HOWEVER that does not necessarily remove your personal responsibility for the debt. So if it is a mortgage you could still be personally responsible for the payments and it will remain on your credit report as an outstanding debt. PLEASE contact a knowledgeable attorney about this before you sign away your rights to discuss them thoroughly .

James Maguire · Answer

Have an attorney (or someone experienced in real estate transactions) prepare it for you.   Louisiana has very strict requirements for real estate transfers. If it is not done correctly, it can cause big problems down the road.

James Frederick · Answer

There is no "primary" or "secondary" owners of real estate in Michigan. You are either an owner or not. If you are an owner, then you have the same rights and powers as any other owner.

Gerald Bagazinski · Answer

Have an attorney prepare a deed for you. The other person may have to refinance to get you off the mortgage.

Victor Waid · Answer

Not seeing the documents you are referring to, I suggest you obtain the services of a real estate lawyer to assist you in preparing the right document to transfer your interest to the intended person. By the way, a bill of sale is used only to evidence the transfer of personal property and not real property.

Thomas Phipps · Answer

You have to execute a deed to the other owner.  You cannot change the names on the loan without the mortgage company's approval.  You will need the services of an attorney.

Christine James · Answer

Go to an attorney and have them draft one.  Doing this yourself can lead to issues and I don't recommend it.  The cost should not be very high and it will be well worth it to protect yourself.

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How do I draw a bill of sale selling a home to the primary owner, so that he may assume the loan?

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