If a Quitclaim Deed is filed, on a house with no mortgage,is the owner free and clear?

Question

My father is trying to get into low income housing. He owns a house in a really bad neighborhood and I want him out. I was told if he owns the house he will make too much money. Someone also told me his name stays on the deed for 2 years. This does not make sense to me.

Answer 1

His only obligation should be any property tax accrued from the previous year he resided in the home.  You should call a local realtor and ask them about any legalities in your state.  They would know better the laws concerning real estate in your area.  I have heard about people "selling" their homes to other people for $1.00 to get there name off deeds and the property legally be sold without a huge influx of cash into there financial situation.  Then, once the house is in your name, you can do with the money what you want (gift it back to your father in small incriments so he doesn't have to pay gift taxes on it...).  Check the laws in your state though!

Good Luck!

Answer 2

I am former Recorder of Deeds.You need to have someone willing to take the property.  He does not just walk away. In addition, their must me no outstanding taxes, liens, etc., in order to have clear title.

They do check to see how long it has been since people had owned property.  They do not want someone to be able to create their eligibility for subsidized housing through liquidation of assets.

(This is similar to qualifying for medical asistance.)