How can I transfer an existing loan on my house to my child who has been paying the house payment for over 2 years?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

How can I transfer an existing loan on my house to my child who has been paying the house payment for over 2 years?

Asked on November 21, 2015 under Real Estate Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

You can't transfer the loan if the loan documents say that it cannot be assigned (or cannot be be assigned without the lender's approval or consent--and the lender does not consent). That is because it is perfectly legal for loan to state that it cannot be assigned, or transfered, to another person, and such a provision or term in the loan agreement is enforceable. 
Almost all commercial loans will have a provision like this--read the loan documents to check--and if so, then you cannot transfer the existing loan to your child.
If the loan documents lack such a provision (which is more common with private loans), however, then you can assign or transfer it. Your child can take assignment of (take over) the loan and all obligations thereunder for, say "$1 and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged" via a written "assignment and assumption of loan." If you can assign the loan, you are advised to have an attorney draft the documentation for it.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption