Removing a Co-Owner From Your Property Title

Answer

Removing someone’s name from a U.S. property title usually happens after a divorce, inheritance settlement, sale or a mutual agreement among co-owners. Title removal transfers full ownership to the remaining party (or parties), updating public records and clarifying who holds legal rights. This process varies by state but follows a few common steps.

Main Steps to Remove a Co-Owner

• Choose the right deed: Most homeowners use a quitclaim deed to transfer interest without guarantees, or a warranty deed if you want to guarantee clear title.
• Draft the deed: You’ll need a legal description of the property, names of current and new owners, and the chosen deed form. Many county recorder websites and resources such as HUD publish sample forms.
• Obtain signatures: All parties listed on the existing title must sign the deed before a notary public. This step ensures the transfer is legally acknowledged.
• File with the county: Record the signed deed at your local county recorder or assessor’s office. Recording fees typically range from $20 to $100, depending on your jurisdiction.
• Notify your lender: If there’s an outstanding mortgage, the lender may require additional paperwork or charge fees. Some mortgages include a “due-on-sale” clause, which can trigger full repayment.

Alternative Routes

• Divorce decree or separation agreement: Family courts often incorporate property division into final orders, which you then record.
• Probate or trust administration: If a co-owner passed away, the executor or trustee transfers title according to a will or trust document.
• Court order: In rare disputes, you may petition the court for partition or forced sale, which can lead to title changes.

Considerations & Potential Costs

• Tax consequences: Removing someone via gift deed may trigger gift-tax reporting if the interest exceeds annual exemption limits (IRS Publication 950).
• Property tax reassessment: In some states (e.g., California under Prop 13), transfers among co-owners don’t always reset assessed value, but check local rules.
• Attorney or escrow fees: Expect $300–$1,000 for legal services, depending on complexity.

After recording, order a title report or title insurance endorsement to confirm the change. This final check ensures there are no lingering liens or errors in the public record.

Before making a final decision, it’s advisable to consult a licensed attorney or title company familiar with your state’s requirements. They can guide you through deed selection, recording protocols and any lender approvals needed to complete the transfer smoothly.