Question: My wife and I recently married. We want to
add my name to the title to her home in North Phoenix. I assume
that all we need to do is record a quit claim deed from my wife
to my wife and me. Do you have any thoughts?
Answer: First, a quit claim deed is technically not a
deed of conveyance, and most title companies will want a warranty
deed from your wife to you and your wife. Second, you should confirm
with the title company that the title insurance policy issued
to your wife will not be affected by your acquisition of an interest
in the home. For example, you may have unknown liens which would
automatically attach to the home when you acquire an interest
in the home. Third, you and your wife need to decide how to take
title which generally would be either community property, or community
property with right of survivorship. Community property has basically
the same effect as tenants in common and means that, upon the
death of the first spouse, the heirs of the first spouse receive
the first spouse’s interest in the home. If title is held as community
property with right of survivorship, however, upon the death of
the first spouse the surviving spouse owns 100% of the home. Note:
Most mortgage loans have a due on sale clause which can require
payment of the entire mortgage loan upon the transfer of any interest
in the home. Federal law prohibits enforcement of due on sale
clauses in certain circumstances. These circumstances include
transfers between spouses, transfers by inheritance, and transfers
to a living trust.
