Dear Michael: My girlfriend and I recently purchased a house together. Six months later she decided she wants out. Friends have recommended a “quit claim deed” as a resolution. Will this work or is there is a better solution?
Answer: A quit claim deed is a legal instrument by which the owner of a piece of real property, called the grantor, transfers his interest to a recipient, called the grantee. The owner/grantor terminates (“quits”) his right and claim to the property, thereby allowing claim to transfer to the recipient/grantee. In your case, your girlfriend can quit claim her interest in the property to you. However, if she quitclaims the house to you, it does not relieve her of her responsibility to the mortgage. If she quit claims her interest it can place her in a very complicated position. She will owe on the mortgage note (and have her credit tied up with it), but not own any interest in the property. She will lose any and all leverage. If you should default on the mortgage payments her credit will also get affected. Can you afford to refinance the mortgage in your name only? This is the only way you can get her name off of the loan. If not, then she is going to have to live with the consequences of her poor decision to buy this house without having taught through the long-term ramifications of her decision. Please contact a real estate attorney about what your options and what is the best way to proceed.
Dear Michael: I closed escrow on the sale of my property, which still qualifies as my principle residence and made a considerable profit. I don’t really know what I should do with the money. I want to invest it, but I don’t know how… any suggestions?
Answer: Your question would be better answered by your accountant or investor, but since you asked, I’ll tell you what I would do: I would pay off all my debts including all credit cards and any outstanding balances. Once all debts are paid off, it’s time to invest the remainder of the funds. I strongly believe that there is no better long-term investment than real estate. Whatever investment you decide to choose, it is best to have a plan and stick to it! Please contact your accountant or investor specialist.
Dear Michael: The square footage of my home is listed at 1200 square feet on the tax roll. I am certain it is 1500 square feet. How can I find out the exact number? I want to sell my home and don’t want to advertise the wrong square footage.
Answer: Go to your local municipality building and safety office and ask for all the permits on your home. Records should have been kept from the time your home was built. If any additions were made to your home and completed with permits city hall will have them on record. If any additions to your home were done without permits you will not be able to add this addition to the total square footage of your home unless you pull the necessary permits. You can define an unpermitted room as a “bonus room,” but it must be listed as a separate room from the house. The square footage for this room must be excluded. You can also hire an appraiser to measure your home. I suggest you disclose the square footage of your home exactly as outlined by the assessor’s description.
Michael Kayem is a Realtor with Re/max Estate Properties serving Culver City and the Westside since 2001. You can contact Michael with your questions at 310-390-3337 or e-mail them to him at: homes@agentmichael.com
