I just bought a house but my parents are on the mortgage because I didnt have any credit or income documented. It is classified as their second property, which does not have favorable tax treatment associated with it. In florida a primary residence’s property taxes are capped at a 3% annual increase, and there is a 25k exemption for taxable value.
my parents and myself are on the deed. Is there any way for them to vest interest to me so that I am recognized by the state as the primary resident of the house which would also allow me to sell the house tax free.
I hoping the only way isnt a refi with the mortgage under my name.
a mortgage is an obligation, not a right. (well, it gives the bank the right to foreclose the property if you don’t pay). the right to hold property is vested in the deed.
This is a valid use of a quitclaim since they don’t need to transfer the property to you (you are already an owner) they only need to release (or “quit”) their claim.
However, since the mortgage is in the parent’s names, their transfer of the property to you would probably violate the DOSC if the bank finds out.
If I bought it from them that would mean I would need to get a new loan in my name and then pay the closing costs again right?
if so that doesnt sound too appealing. The main issue here is the tax free sale of a primary residence. Is there any other way for me to be the primary resident and not pay taxes on the gain while not being on the mortgage?