A deed is a legal document that gives a property’s title from one entity to another. If you have ever paid off a car, you may have received the deed to that car, having exchanged hands from the bank that gave you the loan, to your own, complete ownership. A deed can be transferred from a person, a for-profit business, a non-profit, or some organization, to another. An Interspousal Transfer Grant Deed is used to transfer property between married couples.
Here are some facts about Interspousal Transfer Grant Deeds:
- They simply transfer property from one spouse to another.
- They are often used during the process of a divorce agreement, to give a house over to the spouse that will remain there, for example with the children. In divorce situations, transfers like these also apply to other property, including boats, cars, second homes, etc.
- This type of deed is also used when one or the other spouse has poor credit, and the couple is considering filing for a refinance on a home. To get a better rate, the couple may decide to transfer the title to the spouse with the better credit score.
- Other types of deed transfers are subject to transfer taxes, and also can mean that a property is subject to reassessment, and thus possibly higher property taxes. In other words, title transfers are not always cheap! Unlike these types of transfers, an Interspousal Transfer Grant Deed is not subject to a transfer tax and does not come with a required reassessment. These are two strong arguments for using an Interspousal Transfer Grant Deed.
In order to protect you and your spouse from legal problems that might arise when an Interspousal Transfer Grant Deed is not executed correctly, make sure that your deed is prepared officially, and that it:
- Is in writing.
- Effectively identifies all the parties involved in the transfer, including their current relationship to the title
- Accurately identifies the property to be transferred, with its address and/or other information.
- Is signed before a notary public
- Is recorded, after it has been signed and notarized, by the County Recorder’s office.
Getting Help
If you need to complete an Interspousal Transfer Grant Deed, you may be able to utilize online forms from various title companies. Many of these prepared forms can then be executed and recorded in title company offices at a minimal cost. However, in order to make sure your rights are protected, it is a good idea to hire an experienced attorney to help you with the process of an interspousal transfer grant deed.
