Dear Michael: What is the difference between holding title as “Community Property” and “Community Property with right of survivorship”?
Answer: Spouses (and only spouses) may own real estate as community property. Community property carries no automatic right of survivorship. If Steve and Julie own their home as community property, they have created 50%-50% interests, but without a right of survivorship. Each may pass on his/her share (50%) of the home to whomever they name in their will. Community Property with Right of Survivorship which was established July 1, 2001 provides for a right of survivorship for a married couple while owning a home or other real estate as community property. This would mean that if one spouse dies, the other spouse automatically will own the home outright (assuming proper filing is done) and receive a “stepped-up basis” for the entire home (if it has appreciated in value) for capital gains tax purposes. Typically, this would be a deed signed by the couple granting to themselves their home as Community Property with right of survivorship. Please consult with a real estate attorney for which way to hold title.
Dear Michael: I think my agent is withholding information from me. I feel he is not representing me and my best interest. Can you tell me what I can do about it?
Answer: Have a talk with your agent, you may be mistaking unless you have proof and are absolutely sure that he has been acting unethically. If you are not able to resolve your discrepancy and the problem persists, contact his Broker or office manager and let him/her know the situation. Ask the Broker to transfer your listing to a different agent. This way the listing stays within the Brokerage avoiding any complication which could result in a lawsuit for cancellation of contract. Look up an agent’s work track record before hiring them to represent you in the biggest asset you own (your home). Ask for references and follow up with each one. Make sure the agent works and knows your area. Look up the agent’s reviews and history on Zillow.com. Follow these steps and you will eliminate the risks involved so you don’t end up choosing the wrong agent.
Dear Michael: My parents want to give me their home. What is the best way for them to do so? Can the transfer be done without taxes?
Answer: There are several options you may choose from, the better one depends on your personal situation. Is the property free and clear of any mortgages? If not what is owed, what type of loan is it? Is there any other lien on the property? From your question it is not possible to give you the correct answer; I recommend you seek the advice of a real estate attorney for the best suited method for your family to hold title. The most common method of transfer from parents to child is by Quit Claim Deed. A quitclaim deed is a legal instrument which is used to transfer interest in real property. The entity transferring its interest is called the grantor, and when the quitclaim deed is properly completed and executed it transfers any interest the grantor has in the property to a recipient, called the grantee. The owner/grantor terminates (“quits”) any right and claim to the property, thereby allowing the right or claim to transfer to you, the recipient/grantee.
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
