How to convey a mortgaged property?

I have a second home that I use as rental property. This property still has a mortgage attached. How would I go about deeding this property to my daughter without obtaining a new mortgage?

Asked on June 29, 2012 under Real Estate Law, Utah

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Adding her name to the title now could be a problem as it would violate a clause in the mortgage.  You need to read the document to be sure but I am fairly certain that is what the agreement will say.  It would compromise the lender's position.  I would speak with some one about estate planning instead.  Possibly placing the property in a trust for her benefit or simply willing it to her in a Will.    Good luck.


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