the Past, Present & Future
I bought a piece of property last year. I borrowed
the money to buy it and I signed a note and deed of trust to the bank.
Now, I would like to put my sister’s name on the deed to the
property along with mine. Can I do that?
You can do a deed from you to yourself and your sister. Then you will
own it together and she will have as much to say about the property
as you do.
However, there is a problem. If you look at your note and deed of
trust to the bank, I believe you will find that if you transfer the
property, the loan immediately becomes due in full. In other words,
you can be forced to pay the entire balance of the loan immediately.
The reason for that provision is to protect the bank’s interest
in the property. The property is the collateral for their loan. Should
you not be able to pay, they have the right to sell the land to recoup
what they are owed.
If you were allowed to transfer the land to someone else without any
consequences, the bank could lose its collateral—or in this
case, half its collateral.
It is possible that you could make the new deed and if you continued
to make your payments, the bank would never know. I don’t advise
taking the chance.
The bank might be willing for you to add your sister as an owner if
she also signed a new deed of trust. That way, the bank would still
have access to their collateral.
The only way to find out is to ask.
If you have a question, write Peggy Evans Garland at P.O. Box 905,
Montross, Va 22520, call 804-493-0281 or email me at email@example.com