Title Changes Could Spell Trouble

Q: DEAR BOB: A few years ago, I added my daughter's name to the title to my home. At the time, I was ill and she took good care of me. However, I recovered. She moved away and is no longer close to me. I want to sell my home so I can afford to move into a life-care retirement home, but she refuses to agree to the sale unless she gets half of the sales proceeds when my house sells. How can I take her off my title? -- Ramon V.

A DEAR RAMON: There is no easy way to take your daughter's name off the title to your home. As regular readers of this column know, it is usually a mistake to add a prospective heir's name to your home title before death. Such an act can be a disservice to the heir and the homeowner, as you discovered. Now you have a daughter who demands half of your home sales proceeds. Unless you can prove fraud, duress or mistake in a court, there is no way to undo what you did by adding her to your title.

DEAR BOB: My brother bought a house in February. He has about a quarter-acre of land, which a neighbor offered to buy for $15,000. Can he sell this portion of land without notifying the mortgage lender? Does he have to record the transaction at a title company? -- Rod C.

DEAR ROD: If the house and vacant land are a one-parcel lot, it will be necessary to subdivide the property so the quarter-acre can be deeded to the neighbor. A real estate lawyer can advise what is necessary to accomplish this.

Presuming the entire property is the security for your brother's mortgage, the lender's consent to the subdivision and to the sale will be necessary. The lender might require a partial pay-down on the mortgage balance. Or the lender can refuse to consent at all. Your brother's buyer will insist the deed for his quarter-acre purchase be recorded in the public records. The buyer should also insist on receiving an owner's title insurance policy to be certain he owns marketable title.

DEAR BOB: My husband insisted on taking title to our home in his name alone. That was 18 years ago, shortly after our marriage, and he refuses to add my name to the title. A lawyer friend says I should insist my name be added to the title to avoid probate if my husband dies before me. What would my husband have to sign to add my name to the title to our home? -- Evelyn C.

DEAR EVELYN: Your husband can sign a quitclaim deed from himself to himself and you. The deed should include the method of holding title, such as joint tenancy with right of survivorship. Your lawyer friend can prepare the deed, which must be witnessed in front of a notary public so it can be recorded. When title is held in joint tenancy, after a joint tenant dies, all that is required in most states is for the survivor to record a certified copy of the death certificate and an affidavit of survivorship.

DEAR BOB: I believe you wrote about how to get rid of a problem house. I own a two-bedroom, one-bath house that I have been trying to sell for several months. As I recall, you said something about running a classified newspaper ad telling folks to bring their checkbook. What is the secret? -- Mark F.

DEAR MARK: The secret to selling almost any problem house is to advertise it as a lease-option. Good times or bad, there are always more lease-option buyers than lease-option sellers. My classic lease-option ad (change the numbers for your situation) says: "$5,000 MOVES YOU IN. Lease with option to buy. Open Sunday 1-3 p.m." Then the ad describes the house and monthly rent and gives the address.

DEAR BOB: Should I sell my condo? Years ago, I bought it for $282,003. Today, it's worth $400,000. I lived in it for 2 1/2 years. Now I rent it to a tenant, but with a negative cash flow of $700 per month. Does it make sense to keep this condo if I'm losing money? The rental agreement expires in November. -- Maria G.

DEAR MARIA: Selling any house or condo for top dollar with tenants living in it can be difficult. However, because your renter is your logical buyer, you should first ask your tenant if he wants to buy it. Also, then you wouldn't have to pay any sales commission. Unless your condo is appreciating in market value at least $700 per month to compensate for your negative cash flow, selling the condo makes good business sense. But don't expect to get top dollar with that existing lease.

This is a great time to be selling. However, anyone who buys your rental condo must honor the terms of the lease until it expires, so your sale might be difficult. Unfortunately, your lease expires in November, one of the most difficult months to sell residences. December is even worse.