Many states have different laws regarding property ownership rights, including the nine states that are considered “community property” states.
If you have issues relating to property ownership, it can be confusing. Discuss your concerns with your real estate attorney.
There can be a number of possible reasons why a home purchaser may want to waive ownership rights to a property.
If, for example, one of the buyers is in some type of legal or financial situation that may impact ownership of the property, waiving his or her rights may be a solution.
To remove someone’s ownership rights, an attorney can file what is called a “quitclaim deed.”
This is a legal document that permits a person to waive all ownership interests in a property.
At some point in the future, when legal or other financial issues are no longer a concern, the original title holder can re-add the individual who had waived his or her ownership rights by having another quitclaim deed filed.
One interesting fact: an individual with poor credit, to the point of being unable to qualify for a mortgage, can still be on the title of the property.
To clarify: Only the credit of the borrower whose income and assets will be used to repay the loan will be scrutinized and approved if appropriate. The other buyer – whatever his or her credit – can still be an owner of the property and therefore listed on the title.
In general terms, you should be careful about asking someone to be on a property title with you, especially if that person doesn’t have any responsibility for paying for it.
In some scenarios, when and if you want to have that person removed from the title, you may not be able to, and selling the property without his or her consent may also be an issue. Your real estate lawyer can advise you on these concerns.