Adding a Co‑Owner to Your Property Title: Essential Step

Answer

Adding someone to your property title means transferring or sharing ownership rights on record with your county recorder’s office. Whether you’re inviting a spouse, family member, or business partner, understanding the legal process ensures a smooth transfer and avoids unexpected costs or tax consequences.

Most owners use one of two common deeds:

• Quitclaim deed – Transfers whatever interest you hold without warranties. Often fastest and least expensive.
• Warranty deed – Provides guarantees that your title is clear; preferred when buyers seek full protection.

Key steps to add someone to your title:

• Check mortgage terms: Some loans include a “due‑on‑sale” clause that may require lender approval.
• Choose the right deed: Decide between quitclaim or warranty based on risk and cost (quitclaims often run $50–$200; warranty deeds may cost $100–$300).
• Draft the new deed: Include full legal description, your name as grantor, the new co‑owner as grantee, and the correct vesting (e.g., “joint tenants with right of survivorship”).
• Sign before a notary: All grantors must sign in presence of a notary public to meet state requirements.
• Record the deed: Submit the signed document to your county recorder’s office and pay recording fees (typically $10–$50).

Additional considerations:

• Transfer taxes: Some states or counties levy a tax or fee when you change ownership—rates vary from 0.1% to 1% of the property value.
• Gift tax rules: If you add someone without equal compensation, you may trigger federal gift‑tax reporting (2025 annual exclusion: $18,000 per recipient).
• Title insurance: Updating your policy may cost 0.5%–1% of the property value to protect all owners.

Before you proceed, it’s advisable to consult a licensed real estate attorney or title professional in your county. Buyers are recommended to verify local recording requirements, deed formats, and tax implications to avoid delays or surprises.